Comments on: Net Worth Update – December Edition

By: Lazy Man

Lazy Man — Mon, 18 Dec 2006 08:06:54 +0000

I am going a little risky with Prosper. I think it’s because one of my first loans, a relative un-risky B-credit loan, has caused me the most problems by being constantly late. It feels like I’m taking the risk anyway, might as well get maximum interest.

As for my home, I was thinking about not counting it in my core as well. However, the equity that I have in the place is significant. When we get our next house, I’ll likely have to move some savings for the down payment. I don’t want to have that look like I was taking a loss. I realize that the real estate fluctuations do mask the big picture, but there are the same fluctuations in my stock investments. Is it fair to say that real estate market is different than the stock market? Perhaps it is, but right now I can’t figure out how.

By: Foobarista

Foobarista — Mon, 18 Dec 2006 04:51:47 +0000

For our part, we don’t try to track housing price changes in our “core” net worth calculations. We use the price it was appraised for when we refinanced in 2001, and stick with that. This way, we catch mortgage paydown in our net worth calculations, but don’t have price fluctuations “masking” other things that happen with our net worth.

I do note the Zillow price on the spreadsheet, but it isn’t used in the net worth calculation.

By: fin_indie

fin_indie — Mon, 18 Dec 2006 00:20:49 +0000

I’m right at the $3k level in prosper as well, although you seem to be a bit more aggressive on the funding side than me (ie. funding riskier loans). My current funded loans are in the 14% range (only $1k), and won bids are in the 17-22% range (the other $2k). Obviously, I’m in the process of adding more risk to my holdings there.

I saw your note on my blog about taking the opposite approach and wondered how you decide to fund or not fund a particular loan. What’s the method to your madness? :)

By: Paycheck Mystery is Solved | Goal Progress

Paycheck Mystery is Solved | Goal Progress — Sat, 16 Dec 2006 06:57:30 +0000

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