Well, in some sense, we zoomed up over a $1M in one month (in liquid assets). It turns out getting rid of Trump was really good for stocks, or was it the announcement of three effective Covid-19 vaccines? It's hard to know which was the greater propellant for the markets this month. Probably both.
But, I also made another major adjustment the other direction which more than offset the increase, and that is my adjustment to the value of my law firm ("Other Assets"). Under our current buy-out formula, which was litigated a few years ago, that amount *should* go from $6.2M to about $7.7M, but I simply *cannot* continue to account for it this way because (a) that's a pre-tax figure, and (b) I'm simply not expecting anything like that amount to come to fruition (especially now that I am looking at retiring for law practice in the next 6 to 24 months). After all, will my partner buy me out? Will someone else buy our firm? Or my interest? Will we liquidate? All of these scenarios yield very different outcomes, so I've adjusted the asset way down to a more realistic amount.
Oh, and I met with another relator today, and hope to have another datapoint for evaluating my home. Last month a well-known agent in my area said the house was worth $3M. I adjusted it to $2.5M. I didn't tell the agent today what he'd said, so let's see what a blind second-opinion yields.
UPDATE: Second opinion was my home should sell for about $2.8M based on a recent comp from July, 2020, so a 7% difference. Overall that's very good news, but I'll still keep my value at $2.5M. |