Net worth and pensions

[W2R]

I would just include whatever made sense depending on my intended use for the net worth computation. In other words, I wouldn't get hung up on the definition of the term "net worth" and I would just stick to the mathematical meaning of whatever quantity was being computed. So far, I haven't figured out any reason why I would need to know my net worth, but I'm sure someday one could arise.

 

[Rustic23]

If I have a guaranteed one million dollars a year coming in for 25 years. I certainly consider my net worth to be higher than the guy down the street that does not. However, as there does not appear to be a real good definition and it make a spits worth of difference if I am worth more than my neighbor. I sure won't worry if you don't agree.

 

[brett]

The income stream, and it could be future or current, flows from an asset. Assets are part of net worth.

The asset will actually be appreciating if, as in my case, you have not started taking the pension prior to the full pension (ie no reduction) date. The asset will be depreciating as you take the income stream-in proportion to how a life annuity with identical attributes would depreciate in value/cost as one's age increases.

 

[Shawn]

I would just include whatever made sense depending on my intended use for the net worth computation. In other words, I wouldn't get hung up on the definition of the term "net worth" and I would just stick to the mathematical meaning of whatever quantity was being computed. So far, I haven't figured out any reason why I would need to know my net worth, but I'm sure someday one could arise.

Well, there are bragging rights, but I do not believe they would become you.

But your comments are well taken. Unless you are on Jeopardy, it is difficult to come up with the answer if you do not know the question. This applies to many different financial and other issues, not just to net worth. There are usually many different ways to look at or approach a given problem. How to do it often depends on the objective you are trying to reach.