February 11, 2012


I am not really stuck at 91. I am using my progress to depreciate some things, slowly.

I have a lot of things to depreciate. They have value and different degrees of liquidity, but I don’t really want to count them in my net worth. For example, I have foreign currency accounts and assets which fluctuate relative to the dollar. I already count these assets very conservatively but I want to depreciate them to the bottom of their range over the last few years. So, I do this by removing value from those accounts in my accounting software $100 to $1000 at a time depending on the asset (all my assets are counted in dollars no matter where they are – tricky sometimes). For instance, my car, which really does have value as I hardly ever drive it (I bought it new) has been depreciated down to zero. I also have a considerable amount of physical gold, which I bought at gold sellers here on and off since 2004. Recently, I collected it, weighed it, and added it up (it’s 24K) and was shocked at the value in dollars — it was into five figures! I don’t really want to sell that, and I am not carrying it at anything near its apparent worth, but I want to depreciate it to zero. I am doing this slowly as I earn in what really is the homestretch of my effort here.

One other thing: I have read that when calculating your net worth, you should not include any real estate you own. I have decided not to follow this rule — in fact I feel that RE is a better vehicle for wealth than paper money at this point. Both the dollar and the currency in which I transact have seen massive swings in value of more than 50% against each other, whereas real estate experiences much less actual volatility — at least the type I have, which was generally not affected by the recent housing market bubble (i.e., I didn’t buy in Phoenix, Florida, or Las Vegas in 2006).

Regarding my depreciation plan, the goal is to be finished with it by the time I wind this blog down (when I hit zero).

Another thing: I am reevaluating what kind of car I’d like to get… did you know a Porsche 911S turbo costs over $160000 new? … 🙂