What is your net worth growth rate,How much is your net worth growing year on year

[cardio_guycardio_guy is verified member.]

I haven't calculated my net worth growth rate as such. It is defenitely increasing for sure.
But I don't know exactly the growth rate. Different investments grow at different rates.
Also, there is no use of calculating the net worth of some things like own house, gold for consumption etc, because I am not going to sell it anywyay.
Financial assets grow at different rates - mostly debt instruments at around 7-8% and equity around 10-12%
Income as such also grows at around 5-8% year on year.
I will have to go back and see the net worth from time to time and then get back with some numbers later.

 

[Wealth is my birth right!]

Instead of creating a new thread I found the thread on same line, the person who already wrote, must be acknowledged, at the time 550 views but no one reply.

Maybe for majority those figures are confidential
Mine is 18% cagr
Gold is the king always

 

[hender]

Maybe for majority those figures are confidential
Mine is 18% cagr
Gold is the king always

Complementary to your Surname here ..🆔☝️

 

[Wealth is my birth right!]

Complementary to your Surname here ..🆔☝️

Haha true thanks
Market not doing good past 6 months hope hereafter till Diwali some good to happen

 

[hender]

I haven't calculated my net worth growth rate as such. It is defenitely increasing for sure.
But I don't know exactly the growth rate. Different investments grow at different rates.
Also, there is no use of calculating the net worth of some things like own house, gold for consumption etc, because I am not going to sell it anywyay.
Financial assets grow at different rates - mostly debt instruments at around 7-8% and equity around 10-12%
Income as such also grows at around 5-8% year on year.
I will have to go back and see the net worth from time to time and then get back with some numbers later.

Summarised perfectly.
It's just giving a fair idea, how you are doing !!

 

[sunit123]

Gold always gives a feeling of missed train. 😁 I have less than 0.75% of my investment in gold etf. And I always feel i should have invested more earlier. 😁

Gold and Girl friend always give same feeling...I missed GF but caught Gold

 

[hender]

Haha true thanks
Market not doing good past 6 months hope hereafter till Diwali some good to happen

👍💯, that's why I am active here, 😉

 

[sunit123]

Reverse psychology also happens with gold...
Few years back a friend invested heavily in HDFC Gold MF, Holded for 2-3 years, same time his equity MF performed very well.
One day he sold Gold MF at par.
5x now...

In long term, 10 years..Gold always beat CAGR of Nifty...Gold is evergreen, if you do not want too much headache...

 

[hender]

In long term, 10 years..Gold always beat CAGR of Nifty...Gold is evergreen, if you do not want too much headache...

Problem is holding capacity and the patience.
When other class doing compounding at 30:40 CAGR , temptation to exit non performing asset, and move on to performing is natural.

 

[cardio_guycardio_guy is verified member.]

I also think -- after your networth crosses a significant number (say your FIRE number) more than the growth rate we give importance to stability.
It's OK grow slow but stable 10% is better than volatile 20%.
Sequence of returns risk is what I am most fearful of.
Having a significantly large debt component helps to keep the equity part untouched for many years.

 

[hender]

I also think -- after your networth crosses a significant number (say your FIRE number) more than the growth rate we give importance to stability.
It's OK grow slow but stable 10% is better than volatile 20%.
Sequence of returns risk is what I am most fearful of.
Having a significantly large debt component helps to keep the equity part untouched for many years.

That is quite true, at a certain point preservation is more important...
(Lean F I R E)

 

[tachniki]

I also think -- after your networth crosses a significant number (say your FIRE number) more than the growth rate we give importance to stability.
It's OK grow slow but stable 10% is better than volatile 20%.
Sequence of returns risk is what I am most fearful of.
Having a significantly large debt component helps to keep the equity part untouched for many years.

I feel it is other way. Once you cover up your emergency fund, emis, you can go for higher risk investment. Any money you dont need for 10 years, can be blindly put in Stock market / equity mf.

 

[real_name_hidden]

I feel it is other way. Once you cover up your emergency fund, emis, you can go for higher risk investment. Any money you dont need for 10 years, can be blindly put in Stock market / equity mf.

Second this. Once you have insurance and emergency fund sorted, you can invest (with proper asset allocation) remaining money (after expenses) you don't need in short term

 

[Wealth is my birth right!]

I also think -- after your networth crosses a significant number (say your FIRE number) more than the growth rate we give importance to stability.
It's OK grow slow but stable 10% is better than volatile 20%.
Sequence of returns risk is what I am most fearful of.
Having a significantly large debt component helps to keep the equity part untouched for many years.

Post fire number better to shift equity to debt imo

 

[Virtual King]

Your Input..

My Story
The generic summary is given below.

Calculation Parameters
Starting point - 1st salary + no own house (only parental house) + no car + no other material assets/gizmos, etc (i.e. no starting liquidity or net worth)
End Point - today, with whatever valuations/savings/etc.

Approx. CAGR
Based on the above parameters, for different asset classes, CAGR (CAGR calculator source - here) is as under:-

• Liquid Assets (Cash, FD, Stocks, etc) - 52.02%
• Semi-Liquid Assets (PPF etc) - 28.34%
• House Valuation - 66.63%
• Gold etc - 27.31%
• Misc (car, household assets after depreciation) - 19.31%
• Overall Net Worth - 68.89%

Conclusion
All in all, some hits, some misses. Lot of learning. Plethora of bitter and sweet memories. Etc.
Chhotey se jivan ki chhotey badey sukh aur dukh. 🙂

Hope this helps. 🙂

 

[hender]

My Story
The generic summary is given below.

Calculation Parameters
Starting point - 1st salary + no own house (only parental house) + no car + no other material assets/gizmos, etc (i.e. no starting liquidity or net worth)
End Point - today, with whatever valuations/savings/etc.

Approx. CAGR
Based on the above parameters, for different asset classes, CAGR (CAGR calculator source - here) is as under:-

• Liquid Assets (Cash, FD, Stocks, etc) - 52.02%
• Semi-Liquid Assets (PPF etc) - 28.34%
• House Valuation - 66.63%
• Gold etc - 19.31%
• Misc (car, household assets after depreciation) - 27.31%

Conclusion
All in all, some hits, some misses. Lot of learning. Plethora of bitter and sweet memories. Etc.
Chhotey se jivan ki chhotey badey sukh aur dukh. 🙂

Hope this helps. 🙂

Crispy !! what's the portfolio age ?

 

[tachniki]

House Valuation - 66.63%

Does this mean your house valuation is growing at 66% anually?

 

[Virtual King]

Crispy !! what's the portfolio age ?

About 5 years.
CAGR, XIRR, etc keep fluctuating as I keep investing or withdrawing or keep booking profits every now and then. 🙂

 

[Virtual King]

Does this mean your house valuation is growing at 66% anually?

Perspective 1: Start Point - One's Earning Career
When one started one's journey, there was no house. So, house value = Rs 100 (for calculation's sake)
Today, one has a house and so house valuation is say Rs X
So, input these values in the CAGR calculator will give those CAGR figures which will reflect CAGR over one's earning career.

Perspective 2: Start Point - When One Bought The House
One can use the start point as the time when one bought the house at cost say Rs A
Today, the house valuation is say Rs B after Y years.
So, input these values in the CAGR calculator will give a different answer.

I have used Perspective 1 as stated in the calculation parameters.
So, I have used starting point as Rs 100/1000 only and the present valuations/savings/etc for calculation framework.

(However, now that you mention it, as per Perspective 2, the CAGR for house valuation is 17.34%).

Hope this helps. 🙂

 

[tachniki]

Perspective 1: Start Point - One's Earning Career
When one started one's journey, there was no house. So, house value = Rs 100 (for calculation's sake)
Today, one has a house and so house valuation is say Rs X
So, input these values in the CAGR calculator will give those CAGR figures which will reflect CAGR over one's earning career.

Perspective 2: Start Point - When One Bought The House
One can use the start point as the time when one bought the house at cost say Rs A
Today, the house valuation is say Rs B after Y years.
So, input these values in the CAGR calculator will give a different answer.

I have used Perspective 1 as stated in the calculation parameters.
So, I have used starting point as Rs 100/1000 only and the present valuations/savings/etc for calculation framework.

(However, now that you mention it, as per Perspective 2, the CAGR for house valuation is 17.34%).

Hope this helps. 🙂

Understood. Intresting idea.

While perspective 1 is good to see, perspective 2 might be better for an approximate for future growth.