Friday, December 19, 2008

Simple case study of nest egg change from 12 months ago

This is a made up case study in considering a household's assets, for 12 months change. This is to compare with the stats published in the news of 4.7% change in a quarter. I found using the numbers in my case study the asset is down 18.3% for the year and is comparable with the 4.7%/quarter number.

12 months ago:

100,000 cash savings
100,000 stock/bond investment
80,000 IRA (baby boomer average)
207,000 home, no outstanding mortgage (U.S. median price), or consider this as home equity
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487,000 Total nest egg

12/2008:
104,000 cash savings
62,000 stock/bond investment
50,000 IRA
182,000 home (U.S. median price change, down 12.1% from 12 months ago)
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398,000 Total nest egg (or down 18.3% from 12 months ago)

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