Comments on: November 2007 Net Worth Snapshot http://www.accumulatingmoney.com/november-2007-net-worth-snapshot/ Because wealth is better than poverty, if only for financial reasons. Mon, 19 Jul 2010 06:32:22 +0000 hourly 1 http://wordpress.org/?v=3.0 By: Clint http://www.accumulatingmoney.com/november-2007-net-worth-snapshot/comment-page-1/#comment-28977 Clint Sun, 02 Dec 2007 08:13:53 +0000 http://www.accumulatingmoney.com/november-2007-net-worth-snapshot/#comment-28977 EC, Good questions. The start up opportunity came through a group of associates. We had met a few times with the intent of using our network to learn about and find some investment opportunities. This one presented itself and we decided to take advantage of it. As for why I put my money into it, there are several reasons. The people involved have great reputations, and lots of experience. They knew where we were coming from , so, it was an opportunity to learn a lot about the whole process ie. research, business plans, valuations, etc. In the worst case scenario, I've lost some money and learned a lot in the process. Money well spent in my mind. Also, I think the company has some real potential. I'm a pretty conservative investor (broad based index funds). It's nice to have a little something that has a chance for big returns. As I see it, it's not such a significant portion of my net worth. The initial investment was a little over 3% of my net worth at the time. And, I've been averaging gains larger than that each month. Also, as I mentioned, I could have already sold for nearly times my investment. We already max the Roth IRAs, so we couldn't have put the money there. Sure, I could have built up my emergency fund with that money, but that hasn't been my priority. I'd rather take advantage of an investing opportunity while I can. Then I can build the emergency fund. In the worst case scenario I can always access the money in my Roth, if an emergency calls for it. EC,
Good questions. The start up opportunity came through a group of associates. We had met a few times with the intent of using our network to learn about and find some investment opportunities. This one presented itself and we decided to take advantage of it.

As for why I put my money into it, there are several reasons. The people involved have great reputations, and lots of experience. They knew where we were coming from , so, it was an opportunity to learn a lot about the whole process ie. research, business plans, valuations, etc. In the worst case scenario, I’ve lost some money and learned a lot in the process. Money well spent in my mind.

Also, I think the company has some real potential. I’m a pretty conservative investor (broad based index funds). It’s nice to have a little something that has a chance for big returns.

As I see it, it’s not such a significant portion of my net worth. The initial investment was a little over 3% of my net worth at the time. And, I’ve been averaging gains larger than that each month. Also, as I mentioned, I could have already sold for nearly times my investment.

We already max the Roth IRAs, so we couldn’t have put the money there. Sure, I could have built up my emergency fund with that money, but that hasn’t been my priority. I’d rather take advantage of an investing opportunity while I can. Then I can build the emergency fund. In the worst case scenario I can always access the money in my Roth, if an emergency calls for it.

]]> By: EasyChange http://www.accumulatingmoney.com/november-2007-net-worth-snapshot/comment-page-1/#comment-28972 EasyChange Sun, 02 Dec 2007 04:39:29 +0000 http://www.accumulatingmoney.com/november-2007-net-worth-snapshot/#comment-28972 How did you come across the opportunity to fund a start up? Also, (if I may ask a personal question) why did you opt to put a significant portion of money relative to your total net worth into a start up? It seems like your Efund or your retirement (roth) could use a boost ? Why not put that money there? btw, great post and the blog layout is great! Cheers, EC How did you come across the opportunity to fund a start up? Also, (if I may ask a personal question) why did you opt to put a significant portion of money relative to your total net worth into a start up?

It seems like your Efund or your retirement (roth) could use a boost ? Why not put that money there?

btw, great post and the blog layout is great!

Cheers,
EC

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