It’s sizzling up here in the Philippines as El Nido hits its stride. Water supply is rationed on a daily basis and at certain hours, no water comes out of our showers and faucets! This is the price we pay for living in a tropical paradise.
My current net worth is:
PhP3,398,556.26 / USD 65,356.85
This is comprised of:
Real estate 33.24%
Stocks, bonds, etc. 24.60%
Car value 13.43%
Retirement accounts 5.19%
The increase in retirement accounts is due to an additional entry taking note of my office retirement account, which I was not truly aware of previously. As is common in most offices, my office takes a certain after-tax amount of my paycheck and gives a counter-part amount.
I opted for the maximum deduction even if my office gives a fixed counter-part amount (about PhP3,000.00/USD 57.69/mo) as forced savings never hurt anyone anyway. The retirement account declares dividends every x number of times a year (which I’m not really privy to). We are only made aware of our current balance at the end of every year. By some oversight, I forgot to note this retirement account in the calculation of my net worth.
In any event, I don’t consider retirement accounts to be liquid. When you plan to retire early (as in before age 60), retirement accounts will be beyond your reach as they’re often accessible after the mandatory retirement age. In my case, both retirement accounts are accessible only upon reaching the age of 60/separation from office.
For this same reason, I opted to exclude and not monitor my Social Security in calculating net worth. I do, however, regularly contribute to my Social Security but log these as expenses.
There’s technically no need for me to aggressively save for retirement, if I dispense with retiring early altogether. Other than the foregoing office retirement accounts, government offers a cushy retirement package which adjusts for increases in current salary. Thus, your monthly pension increases with the current salaries.* That’s one thing you cannot find in the private sector and is one of the best perks of working for the government but is seldom spoken of.
That’s one path to take should I opt to dispense with early retirement altogether. I may just wait and work until I turn 60 and I’m all set. I wrote in detail about that option here.
You do what works for you though. I, on the other hand, like having options.
I personally am trying to build up a portfolio allowing me access to passive income at the time that I retire before the mandatory retirement age of 60. Hence, retirement accounts are not really that relevant for me but I like having them as a security blanket.
Have you calculated your net worth lately?
*This is available only to certain select government agencies.