I enjoy listening to talk radio, primarily the business talk radio. Yesterday, I was listening to The Ray Lucia Show when he received a call from a gentleman that wanted to discuss saving money on taxes.
The gentleman is 45 and owns his own company that profits $250,000/year. While he does not have any retirement savings, he owns his home outright and has rental homes and a commercial property that are nearly paid off. Pretty awesome, especially for a 45 year old. What threw me off was when Ray asked him his net worth, the gentleman replied $3,000,000 to $4,000,000.
I didn’t even hear Ray’s answer to the tax question because I couldn’t get over the insanely wide range of $3,000,000 to $4,000,000. Granted, the gentleman was put on the spot and, with the instability in the housing market, it is difficult to know exactly what property is worth. But not knowing your net worth within $1,000,000 seems incomprehensible to me. For us, that would mean the difference between retiring and not retiring.