What is your networth vs. annual expense ratio? (million, increase, dollars)

[techcrium]

E.g. if you have a networth of $300,000 and spend $30,000 per year...

It is 10.

Meaning, if all that money was sitting in cash, you could theoretically survive for 10 years before it runs out.


For me it is 7.

$100,000 networth and $14,000 spending per year.

[mysticaltyger]

I don't think "expense ratio" is the right term. I think a better way of saying it is "What is your net worth expressed as a multiple of your annual spending?"

Mine is ~12.

[Tallysmom]

25

[Pitt Chick]

Originally Posted by techcrium

E.g. if you have a networth of $300,000 and spend $30,000 per year...

It is 10.

Meaning, if all that money was sitting in cash, you could theoretically survive for 10 years before it runs out.

Tough to say.
The net worth increases annually.
Spending fluctuates - especially in the years you need to do things like get a new roof!

Spending could - and would - dramatically decrease if we had to "theoretically survive".

[mathjak107]

very tough to say as the only thing i can tell you is what our non discretionary bills are , everything else is whatever comes along and varys month to month and year to year.

net worth changes daily with markets and can be in a 5 digit range daily.

really can't answer.

[griffon652]

Mine is 18.75 and going up every year.

[Lowexpectations]

My variable expenses are far too inconsistent to accurately gauge this.

[jghorton]

Net worth in the context of years of available resources is a skewed number, since it doesn't include fixed income (pensions, SS, annuities, etc.).

[Sunbather]

Ours is somewhere between 11 and 12 and going up every year, though I don't know what this random metric really tells anyone :P

[Tallysmom]

It gives him an idea of how much money you have -- which is what he's angling for. But it doesn't really work like that. Let's say you have 5 million dollars, but you're still in your earning years and earn 500,000. a year. You could spend 475,000. a year, and come up with a small number. Or you could spend 50,000. a year and come up with a different number.