# What Percentage of your Net Worth is in Stocks & Bonds?



## Lon

Net Worth is as you know----Assets minus Liabilities---Don't include SS payments or any pensions in calculating your Net Worth. My own Net Worth is 100% in Stocks & Bonds. 25 years ago when I was 65 years old my Net Worth was 50% in Stocks & Bonds.


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## hollydolly




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## QuickSilver

PRobalbly 80%


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## jujube

Big fat zero here, too.  I got burned years ago in the market so now I play it safe.  I'm a Nervous Nelly when it comes to playing with my money.


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## Josiah

Do mutual funds count as stocks and bonds? If so 80%.


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## LogicsHere

Sorry, but aren't your house, furnishings and car considered assets as they are salable?  Hence if you own your home or equity in your home that your net worth is not 100% stocks and bonds.

Here is what I found that details Net Worth.

[h=3]Assets[/h]Your assets can be defined as everything you own that has monetary value. They may be liquid like a checking account or non-liquid like your home. If an asset is liquid, it simply means you don’t have to sell it first to realize its monetary value. A few general examples of assets are:


The market value of your home.
The market value of your vehicles.
The money in your investment accounts (including your retirement accounts and life insurance contracts).
The amount you have in your checking and savings accounts, including CDs and money market accounts.
Notable items of value you own, such as artwork, furniture, fine jewelry, or collectibles.
Since items like artwork and jewelry can be highly subjective, only include them as assets if you have had them professionally appraised or have a good sense of what someone would pay for them in today’s market.
[h=3]Liabilities[/h]Liabilities, unlike assets, represent a drain on your resources. These are obligations you have to pay. Your total liabilities aren’t determined by monthly payments owed, but rather by the entire debt you owe. Examples of liabilities include:


Mortgages
Car loans
Credit cards
Student loans
Outstanding medical bills
Back taxes
Liens and judgments against you

Many people find that they have a negative net worth, thanks mainly to their mortgage debt and car loans. Credit card debt and student loans also have a big impact on your overall net worth. Case in point, the student loans my husband and I have are a big reason why our net worth is negative right now.


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## hollydolly

I thought the OP was just talking about stocks and Bonds


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## rkunsaw

The OP was asking about "net worth".

Mine is mostly in house, land and tangible assets with maybe 20% in mutual funds and bank accounts.


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## QuickSilver

Josiah09 said:


> Do mutual funds count as stocks and bonds? If so 80%.



I would think yes... as mutual funds generally invest in stocks and bonds..


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## LogicsHere

I don't really think a financial advisor would recommend keeping all your eggs in one basket.  Doing so one runs a big risk of losing everything.

I'm diversified . . . can't take the risk that the market will drop like it did in 2000 and again in 2008.  Each time it dropped 30-40%; can't afford to lose that much if I'm not working any longer.


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## QuickSilver

LogicsHere said:


> I don't really think a financial advisor would recommend keeping all your eggs in one basket.  Doing so one runs a big risk of losing everything.
> 
> I'm diversified . . . can't take the risk that the market will drop like it did in 2000 and again in 2008.  Each time it dropped 30-40%; can't afford to lose that much if I'm not working any longer.



That's what owning shares in several Mutual Funds does....  It give you diversification.


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## Lon

Josiah09 said:


> Do mutual funds count as stocks and bonds? If so 80%.



Yes   Most Mutual Funds are a mix of individual stocks and bonds


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## Lon

LogicsHere said:


> Sorry, but aren't your house, furnishings and car considered assets as they are salable?  Hence if you own your home or equity in your home that your net worth is not 100% stocks and bonds.
> 
> Here is what I found that details Net Worth.
> 
> *Assets*
> 
> Your assets can be defined as everything you own that has monetary value. They may be liquid like a checking account or non-liquid like your home. If an asset is liquid, it simply means you don’t have to sell it first to realize its monetary value. A few general examples of assets are:
> 
> 
> The market value of your home.
> The market value of your vehicles.
> The money in your investment accounts (including your retirement accounts and life insurance contracts).
> The amount you have in your checking and savings accounts, including CDs and money market accounts.
> Notable items of value you own, such as artwork, furniture, fine jewelry, or collectibles.
> Since items like artwork and jewelry can be highly subjective, only include them as assets if you have had them professionally appraised or have a good sense of what someone would pay for them in today’s market.
> *Liabilities*
> 
> Liabilities, unlike assets, represent a drain on your resources. These are obligations you have to pay. Your total liabilities aren’t determined by monthly payments owed, but rather by the entire debt you owe. Examples of liabilities include:
> 
> 
> Mortgages
> Car loans
> Credit cards
> Student loans
> Outstanding medical bills
> Back taxes
> Liens and judgments against you
> 
> Many people find that they have a negative net worth, thanks mainly to their mortgage debt and car loans. Credit card debt and student loans also have a big impact on your overall net worth. Case in point, the student loans my husband and I have are a big reason why our net worth is negative right now.


 My net worth is actually 98.5 % in Stocks & Bonds. The other 1.5% is jewelery,auto & personal effects. I sold off homes and real estate in the past couple of years and now rent an apartment.


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## Son_of_Perdition

0.00125%


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## LogicsHere

When the stock market drops like it did in 2000 and 2008 by 30-40%; it didn't matter what funds you had . . . they were hit big time.  Trust me as I had only put my money into mutual funds back in 1999 only to have lost 35% of money earned the hard way in savings accounts and cd's.  By diversification, I meant, home, savings account, IRA or 401K or both, annuities. Having everything tied up in stocks and bonds, aka mutual funds is still a plan for disaster.


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## ronaldj

my total worth is in my children and grandchildren....money oh that is just something to buy coffee with....


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## Ken N Tx

ronaldj said:


> my total worth is in my children and grandchildren....money oh that is just something to buy coffee with....



  no worries about it either!!


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## ronaldj

teddy Roosevelt said, "do all you can with what you have where you are at"......if we just think about it we all have more than enough ....unless we are selfish and greedy


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## Jackie22

50%...stocks and bonds


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## DoItMyself

We have around 5% of our portfolio in bonds and about 60% of our investments are in various investment funds-some for income streams and others to continue building our portfolio.  Around 20% of our investment is in real estate other than our primary residence, another 10% is in more liquid investments such as bank accounts.  The other 5% or so is money that I "play" with, occasionally buying and selling individual stocks.


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## AZ Jim

Goose Egg but don't judge by me, I'm net worthless!!


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## Bullie76

10% RE, 30% Stocks, the rest in cd's/bonds(mostly cd's).


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## Joe

10%


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## Ken N Tx




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## Papa

40% here! Mutual funds to play it safe. Seems like another Enron can pop up at any moment. Hard to distinguish between the real and fake. Even the banking collapse was scary and cost me a pretty penny!


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## Lethe200

Our investment portfolio is 75% stocks, 20% bonds, 5% alternatives; we don't take distributions. Our house is currently worth 2/3 of total portfolio. We live on spouse's state pension which is money we didn't have to save to provide income, which is considerable if calculated at a 3% annual distribution rate.

We don't yet collect SocSec; I'm 2 yrs from FRA [full retirement age] and spouse is 5 yrs from FRA claiming. His SS will be quite small as his employer withdrew from SocSec 30 yrs ago so although he has his 40 qrtrs in there were no earnings for the last 30 yrs. 

Very small interest-only 2nd is our only outstanding loan; not even worth paying off as we plan to sell the house in 5-7 yrs. Pay off all charge cards every month. 2 cars, both paid in cash.

We do pay a lot for insurance. Homeowners, car, umbrella liability, earthquake, and we each have a long-term care policy (LTCi). No need to save for eldercare svcs since the LTCi will pay for most of it if required.


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## mathjak107

i use a dynamic portfolio  that changes as volatility changes .

to date no one ever lost a penny in diversified funds because of markets . what made them lose money is bad investor behavior .

they either tried to time things , mis-matched time frames for the use of the money  or they panicked  .  with markets higher   then ever it was the only way you could have lost money .

there is no way in retirement i could support the draw i need , keep up with inflation and have some legacy money left without an allocation to equity's .

to draw about 4% inflation adjusted safely takes at least 35% equity's with 50/50 showing very very high rates of success through the worst of times .

in fact do you know to date a 50/50 mix of diversified funds  has never had a losing year in any 10 or 20 year time frame .  yep , never happened  .

one of the issues today is that market volatility has picked up since 2000 . so if you were comfortable with a 50/50 mix  , today you may have to step down to a 40/60 mix to see the same volatility  range .

so i prefer to stay dynamic ..  while my max in retirement is around 50% at the moment i am only 35% equitys and the rest diversified bond funds .

but about 1/3 of the bond budget is in high yield . when i bought the high yield funds they were beaten to a pulp and represented great value so as a proxy for some equity's i use the high yield funds .

they have 1/2 the volatility of the s&p 500 yet returned more ,  ytd they are up more than 10%.

when they become to over valued they will be swapped likely for more equity's .

i don't change things often but like steering a big ship the portfolio gets nudged to keep it on course based on the big picture .

i have been using a newsletter that caters to fidelity funds but is not owned by fidelity . i have been using them since 1987 with excellent results .

why do i use a newsletter when i can put portfolio models together in my sleep ?

i know me and i am never happy being average .  i always stick my finger in the pot and try to time things and out smart markets .

but no one can do that over and over so to keep me from myself i use the newsletter . i never spend time 2nd guessing my last move or plot my next move . our multi 7 figure portfolio has about 30 seconds a week devoted to it  reading a weekly e-mail update.

so that is what has worked for us  for decades  .  only major  changes were about 7 years before retiring i went from 90-100% diversified stock funds to a range now between 35-50% .

unless we are looking at estate taxes the only assets i count are those that i can use to draw an income off of at the current moment . they are the only ones my withdrawal rate is based on .

i am not selling my car , our art work , our furniture or our jewelry  so they are never part of the equation . when and if the day comes they are no longer consumption items and are sold then they become part of the asset base , other wise they cost me money while i use them .


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## mathjak107

Ken N Tx said:


> View attachment 15187




that is what i tried telling my landlord and the guy at the supermarket when i needed to pay for things   ha ha ha


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