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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club
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To: Lars who wrote (3288)2/12/1999 8:43:00 AM
From: Boca_PETE  Read Replies (1) of 15132
 
Lars: re:<"How much money should you have now?">

For purposes of making the calculation you refer to, I saw nothing in the book that adequately clarified the definition of "your REALIZED PRE-TAX ANNUAL HOUSEHOLD INCOME from all sources except inheritances". After reading the book and trying to make the calculation, I had to make the following assumptions without knowing for sure that I was making a correct calculation. For example:

(1) Assume MUTUAL FUND DISTRIBUTIONS of realized income and cap gains would be EXCLUDED as "non-household" and of a not necessarily continuing nature. Do you agree - if not why ?

(2) Assume you'd need to ADD BACK taken (a) depreciation deductions (b) deductions taken for business portion of home expenses (c) deductions taken for payment(s) to Keogh Plan(s) to arrive at "REALIZED" BUSINESS INCOME. Do you agree - if not, which would you not adjust business income (per tax return) by and why ?

(3) Assume PENSION INCOME would be INCLUDED as REALIZED HOUSEHOLD INCOME. Do you agree - if not, why ?

(4) Assume ONE-TIME Income Tax Refunds recognized on one's tax return would be EXCLUDED as NON-RECURRING Special Items. Do you agree, if not why ?

(5) Assume you'd ADD BACK taken deductions for DEPRECIATION to arrive at REALIZED Income From RENTAL PROPERTIES. Do you agree - if not, why?

Your posts of excerpts from "The Millionaire Next Door" are outstanding. I found the book to be model of behavior to aspire to for those seeking to build their personal assets to "critical mass".

P
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