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View Poll Results: What is your net worth ?
100,000 - 250,000 26 3.94%
250,000-500,000 29 4.39%
500,000-1 million 123 18.64%
1million-2 million 216 32.73%
2million-5 million 211 31.97%
5 million-10 million 44 6.67%
10 million & up 11 1.67%
Voters: 660. You may not vote on this poll

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Old 03-22-2011, 10:17 PM   #161
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It helps, when asking questions, to be clear on the terms of the question before asking:



Believe it or not, there are accountants out there who have rules and definitions for how to calculate net worth. And yes, they at least agree that there are multiple ways of defining/calculating it, which usually depend on what you are using the number for.

Personally I calculate it two different ways: one way is what I consider a plain vanilla net worth, and use for general progress tracking. The other way is my FIRE net worth, which is essentially what I think I could take 4% of. The former includes my house and excludes the NPV of my child support payments, the latter includes precisely the opposite.

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Old 03-22-2011, 11:54 PM   #162
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So as to answer the question of the poll.
Oh....... I just picked a category that was behind the others at the time. Kind of a "cheer for the underdog" mentality. Were we supposed to use our actual net worth?
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Old 03-23-2011, 12:08 AM   #163
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Oh....... I just picked a category that was behind the others at the time. Kind of a "cheer for the underdog" mentality. Were we supposed to use our actual net worth?
Not me; I opted for the herd mentality, though I gotta tell you, that $10 million and up choice was mighty tempting...
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Old 03-23-2011, 01:04 AM   #164
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Good grief, man! You almost made me drop my Waterford Crystal decanter and spew my 1926 Maccalan Fine and Rare Scotch all over the free-range kangaroo leather interior of the new Rolls. Good thing my trusty chauffeur had stopped to borrow some Grey Poupon for my von Essen Platinum Club sandwich...
I am truly devastated and dumbstruck that somebody would pick Waterford over Stuart - must be the colonial influence .
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Old 03-23-2011, 08:52 AM   #165
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What I was questioning was the N X payments as the present value of a SPIA.

Well, I don't present value discount any income stream (such as SS or my DW's two pensions) so I also don't for the SPIA.

I treat it more like a traditional savings account with a 0% interest rate - which BTW is close to the actual rate, today.

It's a different "animal" since unlike SS or pensions, neither of which I consider in my NW, the OP's question. However, I do include the remaining payments in my current NW, since (like the noted savings account), it will have value after I'm gone, assuming I have not drawn down the total remaining value in the account.

If I had a savings account for retirement income, and I decided to take out "$X" each month for income, how would you discount and calculate PV in that case? An SPIA is the same. Also, both the savings account and the SPIA have "estate value", depending on the draw-down and your date of death. Again, a superior estate product as compared to SS or a pension (which is our primary goal).

However, if it is of interest to you on how to calculate the PV of an SPIA, here's an article discussing how you can do so:

http://www.moneychimp.com/articles/finworks/fmpayout.htm

Further discussion on SPIA's as related to computation of true return rates is discussed here:

http://www.bobsfinancialwebsite.com/NotesOnAnnuities.html

BTW, a good paper that I use as a reference, and written by the past president of TIAA-CREF Life:

http://www.bobsfinancialwebsite.com/pdfs/040802.pdf
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Old 03-23-2011, 06:28 PM   #166
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I finally voted on this poll after trying to decide if SS benefits should be included..etc.

I did not use any SS future earnings since I have not started taking them....nor did I use any future income from family business (that functions like a pension - IF it is there). It is simply as of today...what is our net worth.
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Old 03-24-2011, 08:35 AM   #167
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Both with and without SS, I'm still in the same poll bracket. But I definitely include SS as part of my retirement income.
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Old 03-24-2011, 11:31 AM   #168
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It's true with me too. Inclusion of SS would not put me in a higher bracket.

But hey, I just remember something. If we talk per capita net worth, and since I am married, that would just about halve my number.

There, that's something for the single poll respondents to rejoice about.
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Old 03-24-2011, 01:10 PM   #169
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Same here. SS benefits would not change the poll level for me either.

However, the K1 from the family business might. But that is sort of like the stock market..."past performance is not a predictor of future performance"...particularly since we are coming close to the end of the 2nd generation. So...I didn't include it.
(don't count your chickens before they hatch)
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Old 03-24-2011, 01:19 PM   #170
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This is a simple "me too" post. If I multiply my expected future SS benefits by 25 and add them to my net worth I'll still be in the same poll bracket also.

I enjoy knowing that I can count on at least something from the government in my later years.
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Old 03-24-2011, 01:27 PM   #171
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(don't count your chickens before they hatch)
Good, sage advice, it seems to me.
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Old 03-24-2011, 01:33 PM   #172
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It's true with me too. Inclusion of SS would not put me in a higher bracket.

But hey, I just remember something. If we talk per capita net worth, and since I am married, that would just about halve my number.

There, that's something for the single poll respondents to rejoice about.
I'm not rejoicing! Honestly I have enough, and if I had twice that, I'd have enough too.
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Old 03-24-2011, 07:36 PM   #173
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It's true with me too. Inclusion of SS would not put me in a higher bracket.

But hey, I just remember something. If we talk per capita net worth, and since I am married, that would just about halve my number.

There, that's something for the single poll respondents to rejoice about.
Really, except single people usually have more interesting things to concern themselves with than where they may rank in someone's "net worth" poll.

Ha
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Old 03-24-2011, 10:04 PM   #174
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Both with and without SS, I'm still in the same poll bracket. But I definitely include SS as part of my retirement income.
Good to hear your're not one of those "swing voters"
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Old 03-24-2011, 10:26 PM   #175
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But hey, I just remember something. If we talk per capita net worth, and since I am married, that would just about halve my number.
.
Well...technically speaking ...I didn't include my other halfs net worth either. It would not have changed the bucket..although it would have raised us inside the bucket.

And probably unlike a lot of you here, we keep our finances somewhat separate except for sharing household expenses and joint endeavors.
Works for me and works for him.
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Old 03-24-2011, 10:32 PM   #176
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So in deciding whether or not to include your $1.25 pair of Goodwill sandals or your Social Security check into your net worth, is this actually changing anything about how you're living or feel about anything? That is, unless you're doing Step Whatever from Your Money Or Your Life?
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Old 03-25-2011, 08:30 AM   #177
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Good to hear you're not one of those "swing voters"
Heh. Being in Texas, if I vote Republican, I'm lost in the crowd. If I vote Democrat, I'm lost in the noise...

If they change my SS in the next few years, I'll deal with it. But I'm not one of the "rich", by any stretch, so I can probably sneak in unnoticed...
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Old 03-25-2011, 11:39 AM   #178
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Well...technically speaking ...I didn't include my other halfs net worth either. It would not have changed the bucket..although it would have raised us inside the bucket.

Same for me !
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Old 03-25-2011, 01:53 PM   #179
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Me too but I think I already made the point that the bucket was too large in the first place. If a factor of two makes no difference, what the hell?
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Old 03-25-2011, 02:23 PM   #180
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Me too but I think I already made the point that the bucket was too large in the first place. If a factor of two makes no difference, what the hell?
Agree...but not sure I'd vote in a poll ...that wouldn't leave everyone here guessing to some degree.
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