How much did your net worth increase by in 2015? Forum

[hous]

If you worked a full year and what was your salary?

[KM2016]

Not enough

[Tls2016]

Probably decreased.

[in house lawyer]

Increase was $150k. I had hoped it would be more, but the value of our investments (excluding home equity) fell quite a bit near the end of the year.

I made about $200k, spouse made about $50k.

Net worth increase for Q1 2016 was $55k, so I hope 2016 is better.

[ruski]

Increase was $150k. I had hoped it would be more, but the value of our investments (excluding home equity) fell quite a bit near the end of the year.

I made about $200k, spouse made about $50k.

Net worth increase for Q1 2016 was $55k, so I hope 2016 is better.

how is this even possible. If you made 250K, then after tax you took home only 150k. either you saved almost every single penny, or you have some crazy investments/side business

[Anonymous User]

Increase was $150k. I had hoped it would be more, but the value of our investments (excluding home equity) fell quite a bit near the end of the year.

I made about $200k, spouse made about $50k.

Net worth increase for Q1 2016 was $55k, so I hope 2016 is better.

how is this even possible. If you made 250K, then after tax you took home only 150k. either you saved almost every single penny, or you have some crazy investments/side business

Tax rates are high in CA, but 40% isn't a realistic estimate. We paid maybe $60k in state and fed taxes (so 24%) and spent about $50k so of the $150k net worth increase, only about $10k came from investment gains. This is pretty depressing since we have a substantial amount invested.

This doesn't take into account the increase in the value of our home (we live in SF/SV) which has has done a lot better than our investments over the last couple years.

[in house lawyer]

That was accidentally posted anonymously

[anonnymouse]

Increase was $150k. I had hoped it would be more, but the value of our investments (excluding home equity) fell quite a bit near the end of the year.

I made about $200k, spouse made about $50k.

Net worth increase for Q1 2016 was $55k, so I hope 2016 is better.

how is this even possible. If you made 250K, then after tax you took home only 150k. either you saved almost every single penny, or you have some crazy investments/side business

Doesn't seem a huge stretch. Assume both contribute max to retirement, 4% match (poster's handle is in house lawyer, so seems likely), home price appreciation depending on market, S&P +1.5% but any contributions in Aug/Sep would have much higher returns (+10%) so a DCA return for 2015 contributions would be higher than 1.5%:

$36k retirement
$10k match
$14k home price appreciation (2.8% on $500k, a reasonable price for $250k household income)

That would put them at +$60k without touching take-home income. Only +$90k to get the rest of the way. Assume no return at all on that $90k, still lives $60k for spending after tax. $2k/mo for mortgage leaves $3k/mo for spending. Adjust higher if you want to include any return on previously existing investments/retirement balances.

Seems reasonable in TX. Maybe less so in other markets.

[anonnymouse]

Eh, scooped.

[kellyfrost]

If you worked a full year and what was your salary?

Increased slightly only because I bought a home for under market value.

[Anonymous User]

Last year was a second-year market biglaw in NYC, so pre-tax income of $195k.

$12k in debt to parents repaid
$18k saved pre-tax (401(k) maxed)
~$30k saved post-tax (entire post-tax bonus plus about $15k in other savings)
Loss of about $5k because the market sucked last year

Net increase in net worth: ~$55k

I had a bad break-up last year, doubling my rent for a while, so it wasn't a particularly good year for saving. This year I anticipate the below (third-year biglaw, so pre-tax income of $235k assuming bonuses don't change):

$12k in debt to parents repaid
$18k saved pre-tax (401(k) maxed)
~$80k saved post-tax (entire post-tax bonus plus about $50k in other savings)
Estimate gains of about $10k on investments total (currently pretty much flat on the year, though)

Net increase in net worth: ~$120k

[Anonymous User]

above-market texas second year. pre-tax income at $225k
net increase in net worth: ~$110k

killed off my loans in january: $37k
maxed my 401(k): $18k
put like $18k in a managed brokerage account
also my house appreciated some, but that's not reflected in the number above.
rest went to savings and etrade. (i'm getting married soon, so i'm keeping a higher % in the bank for related expenses.)

should have saved more. i spend a stupid amount of money on food.

[zot1]

What net worth?

[Anonymous User]

From what I understand associates and/or partners are pretty constrained from investing/trading in the market for insider trading reasons. Does anyone have any advice on how to get around this or how to invest in a way that won't send me to jail?

[favabeansoup]

From what I understand associates and/or partners are pretty constrained from investing/trading in the market for insider trading reasons. Does anyone have any advice on how to get around this or how to invest in a way that won't send me to jail?

Just don't invest based on things you hear/see as part of your representation of clients. It's really not that hard.

[in house lawyer]

From what I understand associates and/or partners are pretty constrained from investing/trading in the market for insider trading reasons. Does anyone have any advice on how to get around this or how to invest in a way that won't send me to jail?

These restrictions usually don't apply to index funds.

[Anonymous User]

From what I understand associates and/or partners are pretty constrained from investing/trading in the market for insider trading reasons. Does anyone have any advice on how to get around this or how to invest in a way that won't send me to jail?

Just don't invest based on things you hear/see as part of your representation of clients. It's really not that hard.

Some firms don't want attorneys trading any individual stocks. I've been only using index funds.

[Anonymous User]

I made about ~$200k in 2015, husband made about $125k. I paid off the ~$35k remaining on my loans, and saved ~$40k. He reduced the principal on his loans by ~$30k and saved about 10k. So I like to think our net worth increased by ~$115k....

[Anonymous User]

About $225k between myself and spouse

$50k home appreciation
Paid off $100k of student loans (last of 'em)
Contributed $50k to retirement accounts between the two of us (generous 401k match + IRA Contributions)
$25k Pension benefits vested

[A. Nony Mouse]

What net worth?

Seriously.

[Fed_Atty]

It's really only important if you are a fisherman

[Anonymous User]

~$70k as a first year in the bay area.

Increase was $150k. I had hoped it would be more, but the value of our investments (excluding home equity) fell quite a bit near the end of the year.

I made about $200k, spouse made about $50k.

Net worth increase for Q1 2016 was $55k, so I hope 2016 is better.

how is this even possible. If you made 250K, then after tax you took home only 150k. either you saved almost every single penny, or you have some crazy investments/side business

Tax rates are high in CA, but 40% isn't a realistic estimate. We paid maybe $60k in state and fed taxes (so 24%) and spent about $50k so of the $150k net worth increase, only about $10k came from investment gains. This is pretty depressing since we have a substantial amount invested.

This doesn't take into account the increase in the value of our home (we live in SF/SV) which has has done a lot better than our investments over the last couple years.

40% is within a couple percentage points of the effective rate for an unmarried CA first year with no kids and no 401k contributions. FICA, CA unemployment insurance, CA income, federal income. the rate is stupid high for people with substantial student loans.

also, a lot of apples and oranges in this thread - $10k put in a brokerage account is worth substantially more than $10k in a 401k.

[WhiteCollarBlueShirt]

Very solid negatives here... salary in the low six figures. To get a positive net worth within the next 18 years, I would need to make equity partner or otherwise come into a significant step up in cash inflow.

Should've, could've, would've not law'd so to speak. And at least, should've, could've, would've taken those scholarships over "prestige."

make sure compound interest works for you, not against you

[zot1]

Very solid negatives here... salary in the low six figures. To get a positive net worth within the next 18 years, I would need to make equity partner or otherwise come into a significant step up in cash inflow.

Should've, could've, would've not law'd so to speak. And at least, should've, could've, would've taken those scholarships over "prestige."

make sure compound interest works for you, not against you

Don't feel so bad. My net worth will be negative until the day I die. Okay, hopefully not, but it will feel like it for a while.

[Hikikomorist]

Lost about $11K in 2015. Yay, 1L!