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Old 08-04-2013, 01:07 PM   #61
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Thank you, for introducing the concept of "investment portfolio" versus "net worth." I was groping for that concept but didn't have a name to call it.

I agree about not including market value of belongings, furniture, etc. Ours are so old that the very effort of trying to sell them would negate most of what little they are probably worth!

Then again, how is one supposed to think about the fact that we like our old furniture and other belongings, and they prevent us from having to spend $$ on new furniture and stuff?

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Originally Posted by Katsmeow View Post
It is an asset. You could sell it or borrow against it.

And, it most certainly is part of your net worth and a significant part of it.

It is not, however, part of your investment portfolio.

In my own case I don't count home equity as part of my investment portfolio in determining a withdrawal rate.

I do each month or keep a running total of net worth just to see the overall picture.

For net worth I include all cash, all investment portfolios, equity in house and cars. Technically I should include the market value of all other assets (furniture, clothes, appliances, etc.) but I figure those are small enough in value that it isn't worth the effort to do.

I don't deduct the taxes that will be paid on future withdrawals from tax deferred accounts (I consider those part of expenses) or the costs to sell the house (but mentally I figure those to be about 10% of the future sale price of the house).
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Old 08-04-2013, 02:37 PM   #62
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I just woke up from a nap (had tough time sleeping last night), and saw your post. So here goes.

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Your theories have brought about new revelations to my frazzled brain...

Could my eggs not be chicken eggs but ostrich eggs or even owl eggs. (thus the hoot remark)
Of course they could be. And ostrich eggs are superior to chicken eggs, the same way a million British pounds is superior to a million US dollars. I have not seen an owl egg to know its value. Same size as quail egg, perhaps?

Did you get them at Safeway or Walmart? I'd like to try some.

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If the cracked egg was rotten, would my net worth not be 2?
Aw shuck! Now not only your net worth is 2, but you also have a stinkin' pan. My condolences.

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If the cracked egg produced a chick, would my net worth still be 2?

Of course there would be a new set of dilemmas if a chick came forth. Do I want a pet at this stage of the game...would code enforcement tell me I can't keep it...would it be lonely and all I could do was hope another egg would crack and yield a sibling for company?
Can that be true? I thought the egg has to be fertile (not from farm raised hen), and it has to be incubated. I have never opened my fridge and found a chick in my egg tray.

Quote:
If another egg cracked and it produced an alligator, would I accidentally crush the last remaining egg while running away from the alligator?
You would not be able to harvest an alligator egg. You would run away first from its mother, who protects the nest until the eggs hatch.


Thus, we have another conclusion: Complicated theoretical problems remain theoretical in real life.
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Old 08-04-2013, 08:56 PM   #63
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If you eat your assets / eggs, they are gone, or they turn into you-know-what!

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Old 08-04-2013, 10:27 PM   #64
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If you are never going to eat your eggs, you should look into preserving your eggs like the Chinese "thousand year" eggs. I have not eaten those, but guess they will keep a long time.
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Old 08-04-2013, 11:05 PM   #65
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If you are never going to eat your eggs, you should look into preserving your eggs like the Chinese "thousand year" eggs. I have not eaten those, but guess they will keep a long time.
They are good with rice congee soup and can be kept for a while.
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Old 08-04-2013, 11:06 PM   #66
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All this talk of eggs reminded me that my sister does eat peacock eggs pretty regular. Not as big as an ostrich egg, but one will make a nice omelet.

Alas her NW {nest egg[s]} has been shrinking. She went from getting 10 or 12 eggs a day down to 2 or 3. Since there were no blood or feathers around, she figured it must be a snake eating them. So last night when she gathered the eggs, she put a couple of golf balls in the nest. Today the golf balls were gone, and I'm guessing a White Oak Snake has a bad belly ache.
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