# Great site to help track your NetWorthIQ



## GregR

Just got set up and entered my own NetWorth back four months.

Easy to track and compare to others, only thing is it is in USD so you'll have to keep this in mind.

www.networthiq.com

Please feel free to view and comment on mine:

https://www.networthiq.com/people/GregR


----------



## CJB

Nice looking growth in your net worth there Greg. Hopefully that trend will continue!

I find NetworthIQ to be a really simple and easy to use utility to track personal net worth. You can even add comments to each statement to help you remember what events took place over time.

Here's mine https://www.networthiq.com/people/KrisKross


----------



## Jon_Snow

Just signed up for this.... very cool idea, especially the graph feature.

Not sure how I feel about sharing my profile publicly on a forum yet though... 

Quite honestly, I am suprised at how forthcoming people on this board are about sharing their financial particulars. Pretty cool, but it feels a bit voyeuristic at times.


----------



## The_Number

Jon_Snow said:


> Quite honestly, I am suprised at how forthcoming people on this board are about sharing their financial particulars. Pretty cool, but it feels a bit voyeuristic at times.


I know this topic came up in another thread. I can't speak for others, but I'm still so close to the start line (less than a year of "real" work) that my personal financial details don't feel that personal yet (If I may make a bad analogy, it's more like how much money you have after one or two turns in Monopoly - No. I didn't buy Baltic .) If anything, my personal financial statement tells you how I got to the start line.


----------



## steve41

I notice you have to sign up to run the numbers. Are you sure this site isn't just trolling for potential HNW clients? Why would you need to register?

Sounds a bit flaky. Why would you not simply read your monthly brokerage statement, bank account, loan statement and property tax assessment?


----------



## GregR

steve41 said:


> I notice you have to sign up to run the numbers. Are you sure this site isn't just trolling for potential HNW clients? Why would you need to register?
> 
> Sounds a bit flaky. Why would you not simply read your monthly brokerage statement, bank account, loan statement and property tax assessment?


I'm sure you need to register to be able to track you profile on an ongoing basis. If not you can just tally it up yourself but you wouldn't have the fansy graph's and other features. 

As you can see on the site some of the profiles go back a few years which I think provides a good overall view of the bigger picture.

It also allows you to see how you compare to your peers in similar age groups, education, location, etc.


----------



## Jon_Snow

I signed up for this a few weeks ago... embarrassed to say that I had never really calculated my net worth before. Comparing myself to dozens of other mid-30 somethings I was pleasantly surprised to see that I am doing quite well thank you very much.


----------



## michika

I joined and compared their calculations to mine. I still don't feel my net worth is really a true reflection of what it is. I think my home is artificially inflating the number, but hey, its a nice number!


----------



## thatdaveguy

I was going to come into this forum and suggest NetWorthIQ--I've been using it for well over two years.

You can see my progress here:

https://www.networthiq.com/people/thatdaveguy

I haven't really anything to hide from an anonymous message board... so why not? I've never really understood being secretive about ones finances in general, especially if it's a semi anonymous forum,


----------



## archanfel

Since I am sure they log your IP, it's hardly anonymous.


----------



## The_Number

archanfel said:


> Since I am sure they log your IP, it's hardly anonymous.


You can use proxy or VPN.


----------



## thatdaveguy

archanfel said:


> Since I am sure they log your IP, it's hardly anonymous.


The whole internet logs your IP... not much they're going to do with it.

Excessive paranoia, IMO


----------



## Armi

This looks kinda cool. I'm going to try it out.

Thanks : )


----------



## Jon_Snow

I use it... look for me.


----------



## Addy

I'm considering using this too, but I'm curious how do people value their home? I can get an idea based on similiar mls listings around the neighbourhood, and I have spoke with a Realtor who told us how much she would list it for (higher than I'm sure what it's worth however!!). I'm curious if there's a better way to estimate the market value of your home?


----------



## MoneyGal

Just for fun, if you want to add the value of your *human capital* to your net worth, you can use the first calculator on this list: 

http://qwema.ca/calc_milestones.html

(I may have posted this calculator before, but not in this thread at any rate!)


----------



## steve41

I have a completely different take on NW... the BQ.

The Burger Quotient (BQ) is a number which indicates that maximum lifestyle (after tax, after inflation) which, if sustained, will (just) take you out to age 95, at which point your capital runs out. It takes not only your existing capital (reg/nonreg/equity/txfree), but it includes your 'salary capital'... your career as represented by paychecks coming at you over time, as well as any future windfall revenue, selling the cottage, any inheritance you reasonably might expect.

In order to make it uniform, you have to artificially 'sell' your residence now, and pay off any loans.

The beauty of this measure, as opposed to NW, is that it is determined irrespective of age.... you can be just starting out, nearly retired or fully retired.

The only thing that needs to be standardized is that you need to set a horizon age, a rate of return and an inflation rate. (age 95, 6%, 2%, say)

Much more meaningful, IMHO.


----------



## MoneyGal

Steve: does your model assume constant rates of withdrawal? ISTM a person's longevity risk aversion would impact their spending rate (and thus their "Burger Quotient"). 

That is, a rational, utility-maximizing spender (the "econ" in Thaler and Sunstein's Nudge) would spend more in the early years of retirement and less as they age - because it is irrational to equally weight consumption at age 95 when you have a much smaller probability of actually reaching 95 than you do the next year of life. 

I'd be interested in your thoughts...


----------



## steve41

It could. The BQ is more of a concept.... it assumes a constant ATI (in today's $) lasting out to some arbitrary age. It could just as easily be refined further to include such a 'step-down'.... say a 75% reduced lifestyle at age 75.

So the BQ could be standardized as 6%, 2%, age 95, 75/75.

Meaning, that ATI which will just take your capital out to age 95, but with a 75% reduction at age 75.

I only offer it because this is exactly the computation that RRIFmetic does.

Also, in the interest of being truly anal, you could specify the province you were talking about.

Further... there is no concept of 'constant rate of withdrawal'.... the withdrawal trajectory varies in a 'ragged' manner depending on all the other non-investment entities which come in and out of play over time. These entities include, salary, cpp/oas, tax.... etc. In fact, the withdrawal is (generally) negative during that period when you are still working. I don't differentiate between pre and post retirement... if the money coming in the door such as salary, selling the cottage, is greater than what is needed for sustaining the BQ/lifestyle, the program saves. When there is insufficient money coming in, the program withdraws from saving. The program has absolutely no data element called retirement age. You could be working, plan to take a sabbatical in 5 years for a time, then come back into the workforce at a reduced or greater salary. What would you define retirement age to be in that case?


----------



## steve41

The reason it has more meaning than pure NW is that it tells you what your lifestyle, and by inference, how much you should be saving (if still working) or drawing down (if retired). In other words it directly relates to how you should be budgeting.


----------



## Jon_Snow

Steve, it is clear that you work with numbers like great artists work with oils...

For us mortals though, net worth calculations still have thier place.


----------



## steve41

Gross salary, retirement age, RRSP, TFSA, ACB of your cottage, its mkt value, and the age you plan to sell it, value of your home, size of mortgage, province... By the time those few numbers are entered, wait 2 seconds and poof... your BQ pops out. 

It isn't the most onerous application you will ever bump into. Mind you, I've done all the heavy lifting.


----------



## m3s

I'm on there now

https://www.networthiq.com/people/mode3sour

I don't understand the point of this human or burger capitals. You don't know what's going to happen in the future... if I did I wouldn't need to track my current worth

Seems like counting your eggs before they've hatched.. or before they've even been laid

Maybe y'all would learn something from backyard urban chickens


----------



## steve41

Lets put it this way....

You are 55, plan to retire at 65 and you gross 75K per year. You have $300K in your RRSP and a $100K line of credit. Your home is worth $300K.

Now.... isn't it more useful to know your BQ... that level of (after tax) consumption which will take you out to age 95 say...., than the useless bit of information that says your current networth is $500K? (300K house + 300K rrsp - 100K loc)

Your BQ is $42.2 K by the way.... based on 6% rate of return, 2% inflation, living in BC.


----------



## m3s

So because you artificially sell the house does that mean the entire mortgage payment is considered a BQ expense?


----------



## Taxsaver

The_Number said:


> You can use proxy or VPN.


How do you use proxy or VPN. Heck, I don't even know what these mean!


----------



## Taxsaver

Jon_Snow said:


> I use it... look for me.


Jon, your comments in this thread are so funny!


----------



## steve41

mode3sour said:


> So because you artificially sell the house does that mean the entire mortgage payment is considered a BQ expense?


 No, I exclude loan pmts and taxes from the BQ.


----------



## Jon_Snow

Mode3sour, good to see you on there! There are more than a few CMF'ers on Networth IQ. You appear do be doing well considering your young age.....

Thanks to a subdivision of some acerage, out net worth just crossed the million mark... sounds good, but so much of our net worth is in real estate... I'd rather have the bulk of our worth in investments/cash so our money was working for us. Can't sell the acerage because its been in the family for generations... and I will likely retire there anyway. Our city home will be sold when we retire, so I consider its value part of my investment portfolio...

http://www.networthiq.com/people/jon_snow


----------



## m3s

Jon, congrats on 1 million! That is quite the milestone!! Though it's just a number it's kinda what we all aim for, so I hope to follow



steve41 said:


> No, I exclude loan pmts and taxes from the BQ.


So your house is just an expense in the grand scheme of your career? Seeing as you live in it till 95? The BQ hurts my head, and there are too many unknowns in my future. And my human capital makes me want to live like a millionaire today


----------



## steve41

mode3sour said:


> So because you artificially sell the house does that mean the entire mortgage payment is considered a BQ expense?


Look at it this way.... that 55 year old with the $500K net worth has nothing to tell him how he should be budgeting... you know, buying beer & groceries. His BQ (42.2K) tells him how much he can afford as a yearly lifestyle. If he is spending $60K on living expenses, then his BQ tells him he should cool his jets and save more, otherwise he will be sucking air at age 70.

On the other hand, if he is spending just $35K, then his rotten kids will inherit a gazillion dollars when he makes it to 95. All the "BQ" does is give him guidance as to how he should tailor his saving/spending. The $500K net worth is not a meaningful measurement, IMHO.

The reason I exclude loan payments from the BQ is because loans and real estate are really part of an individual's capital. Decisions as to whether to sell or downsize the home at a future time, or to pay off the loan on an accelerated time scale are part of the planning process.


----------



## OhGreatGuru

I can't believe people are voluntarily posting information about their financial worth on the internet that would be illegal for any financial institution to reveal under our Privacy laws.

It must be a generational thing.


----------



## steve41

I have one word for it..... creepy.


----------



## allgood

I just input my numbers for the last year+ into networthIQ. Here is me: https://www.networthiq.com/people/allgood


----------



## Jungle

Are you guys using family net worth? I just (formally) started tracking our net worth in March, I figured I would do it every quarter, but it seems people do it every month? 

Another problem I had was putting value on our properties. Due to the bubble its gone up a bit and I know it will probably correct back a little. On my last net worth, since it was my first one, I just undervalued it, to what I think the market will correct too. I am more concerned with tracking other debts and investments anyway. I'm not doing another net worth at the end of the month, so I might post it on that site. Pretty neat.


----------



## Jungle

GregR said:


> Just got set up and entered my own NetWorth back four months.
> 
> Easy to track and compare to others, only thing is it is in USD so you'll have to keep this in mind.
> 
> www.networthiq.com
> 
> *Please feel free to view and comment on mine:*
> 
> https://www.networthiq.com/people/GregR


Very good. Was -15% on your retirement funds due to the crappy month in the markets?


----------



## Jungle

Now on, posted here: https://www.networthiq.com/people/Jungle


----------



## Jungle

Site is down and it's driving me nuts. Oct was another good month and I want to post!


----------



## Jon_Snow

I was a bit perturbed when it was down as well... I know various members of this site have labelled those of us who post our net worth as "creepy", but I find it a very useful motivational tool.

I'm on vacation on Mexico and find it very encouraging that my net worth may still increase for November while I'm spending altogether too much money on food and liquid refreshments...


----------



## m3s

I find it motivating as well. It makes me think twice about buying all those 'wants'. I guess MDJ is creepy as well


----------



## the-royal-mail

I'm not sure why it's a problem to post select financial details when we are under alias names. Anyone can tell anyone what they want, about them. It's not okay for someone _else_ who has the info, to provide it to a 3rd party. Big difference.

It only becomes a problem when we start to reveal details about who we actually are, where we live/work, our real names, etc.

Just my opinion, feel free to disagree. I don't say mine is the correct way.


----------



## 72camaross

I find it motivating except this month i went down... stupid renovations.

But I did see and am now questioning why my student loan is so high! I think they messed up. fingers crossed.

https://www.networthiq.com/people/72camaross


----------



## Jon_Snow

72camaross, I just had a quick look at your Networth IQ profile... call me crazy, and I don't mean to judge, but have you considered trying to pay down some of your debt before you buy another house? (I saw it mentioned in the comments section you were thinking of buying one)

The students loans really caught my eye.


----------



## Cal

A question for those using Net Worth IQ....what constitutes an Asset under 'other' category?

I had wondered if a boat or art would be personal property or other...or if other meant a 3rd property.

Me..I don't include as an asset cars , or personal property, as I have no intention of liquidating them...but that's just my frame of thought.


----------



## Jungle

Cal said:


> A question for those using Net Worth IQ....what constitutes an Asset under 'other' category?
> 
> I had wondered if a boat or art would be personal property or other...or if other meant a 3rd property.
> 
> Me..I don't include as an asset cars , or personal property, as I have no intention of liquidating them...but that's just my frame of thought.


It could be personal or other. It's really it's up to you. A lot of postings on there do not really included personal property. This seems to be a common thing.


----------



## Jon_Snow

I put the lump sum value of my DB pension under "other'".


----------



## steve41

If you are going to the trouble of itemizing things other than financial assets, why not do the Full Monte?

Example.... I have $250K in my RRSP, 250K in taxable savings and 10K in taxfree. I own a $350K home with a 200K mortgage, my salary (career asset) is 80K per year, with a 2% DB pension, and I expect full CPP and OAS entitlement.

Those numbers, along with a guess-timate on future rates and inflation as well as a target retirement age and a maximum die-broke age horizon (100 say) took me 5 minutes -tops- to source.

The number which pops out of the calculation has infinitely more meaning to me than my net worth... in the above case, $660K.

The number which drops out of the above calculation is $49,737.... lets round it up to $50K. What does $50K relate to? It is that constant amount of money (after tax, adjusted for inflation) I can spend each and every year (pre and post retirement) such that I just make it out to age 95. It tells me how much I should be saving while I am working, and how much I should be drawing down while I am retired.

Sort of a 'lifestyle spending life annuity'.

It takes into account all aspects of taxation (clawbacks, deductions...), as well as all the non-investment entities in my life.... salary, pension, entitlement income, loan payments, etc.

Anyone who takes the time to simply add up their net worth should go the extra mile and determine something really useful, IMHO.


----------



## m3s

Is there a thread on that? It seems like an entirely different beast. Networth is a report of the past, and yours is a projected estimate. Kinda like how stocks follow the expected profits but then re-correct sharply when the actual profits are reported.

I don't know about others, but I can't calculate all that in 5 mins. I've been trying to figure out how my DB pension works for years but no one gives a straight answer, or knows, since all the changes.

For me networth is still the main thing I want to track but I'd like to calculate that number maybe once a year or after big change in my finances, so you should make a thread or explain the math, or if it takes 5 mins do it for me


----------



## steve41

Sorry, that was just my lame attempt to self-promote RRIFmetic. The 5 minute part was true.... what I didn't mention was the 15 years or so of development it took me to get it to the stage it is now.

Some individuals have attempted to solve the problem using spreadsheeting, and while you can achieve a somewhat similar result, you have to badly approximate the effect of taxation. Since the options available to the Canadian investor are becoming more effected/complicated by income tax (RRSPs, dividends, tax free savings, capital gains....) such spreadsheet approaches leave a lot to be desired. 

The point I was making was that knowing I had a $50K annual beer&grocery budget was a lot more meaningful than knowing I had a $660K net worth, and that deriving that number periodically was not too onerous. (Given the appropriate software, of course)


----------



## m3s

Ah ok.. yea I actually opened up a excel spread sheet and then realized it was going to take a lot more than 5 mins. As a programmer myself I think you should put those algorithms into a mobile app that just spits out the burger quotient and a pretty graph. You could combine it with an expense tracker or something. You could probably only charge $2-10 or so but you can make a fortune if it catches on. Not much competition in the Cdn market either


----------

