| Time for a more detailed overview.
1. Cash. This is not really all "cash," but for simplicity, I keep it this way since I've been actively trading. Right now, it's cash, securities, municipal bonds, and hard money loans. I'm transitioning from the trading philosophy (the highs were great, but the lows sucked) to a more "mature" portfolio philosophy of roughly 70/30 stocks and bonds (for now). I have a carefully researched plan, with an eye towards total growth, yield, taxes, QDI, turnover, and expenses. My goal is to add to and grow this portfolio over the next 10 years to between $15MM and $17MM, which will allow me to comfortably live off of the dividend income alone.
2. Retirement. I completely ignore these accounts. They are all invested in domestic S&P 500 ETFs.
3. Real Estate. I've struggled with keeping all my real estate. Some properties provide decent cash flow while others do not, but they've appreciated. So I've decided to put 2 of them on the market, leaving only a relatively inexpensive second property that we rent and use regularly. It will be interesting to see how close I've valued them when they ultimately sell.
4. Other Assets. This consists of my law firm and another business that I own (which I've been divesting from and will be out of in the next 2 years). The law firm makes up the vast majority of this amount, however, and is based upon a mathematical calculation of value in our Operating Agreement. Since we just got our 2016 tax return for the firm, I was able to re-value the firm based on this amount (it's about $4.7MM). So, if I were to retire today, that is the amount that I'd be paid out from the firm. While this is a big part of my net worth and impossible to ignore, I really do not give it much other than psychic-value for now (i.e., it's not liquid, but it's certainly "worth something," and technically worth $4.7MM, so it needs to be included).
Other Debts. That is the present tax liability if I were to sell real estate, which I am so this will be total federal and state tax owed on those properties (at this time I would not owe taxes on the other two). |