2012 Net Worth Growth

Well with the books closed we officially had a solid year in terms of net worth growth in 2012:

Its hard to complain with double digit portfolio returns. I think its interesting that our annual growth has been very consistent over the past few years where in 2009, 2010, and 2012 we basically grew our net worth by $150k each yr. What I find exciting here is that the portfolio rate of return we had was less each year (that sounds weird doesn't it?). I see it and I think about the effect our growing net worth on our annual earnings capability -- we are earning the same amount, but need less return from our investment portfolio and therefore less investment risk to get those annual earnings. That is a pretty cool thing.

Now if I could only get the markets to return double digit gains consistently - we'd already be financially free if that were the case.

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Comments (4)

Congrats! and your blog inspired me to save a lot more. Compounding in action.

To what extent has the rental property affected your net worth growth? Do you think these returns are possible by investing solely in the market?

Hi, congrats on your achievements. One question regarding title of rental properties? Do you feel absolutely necessary to hold rental in LLc or similar?

SR - I don't think the rentals are critical for net worth growth. I see the rentals more critical to support our cash flow once we are financially free. You need income and generally I would rely on the market to provide that once I'm financially free.

Bill - I don't currently hold my rentals in an LLC, but that is because in years past I didn't think we had that much to protect.....its probably time for me to start thinking about this again though given our net worth growth.

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About 2millionblog.com

A personal finance weblog of my journey to reach my goal of $2 million + the value of my primary residence.
Current Net Worth: $1,701,144


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