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View Poll Results: What's your number?
< $250,000 3 1.31%
$250K - $500K 9 3.93%
$501K - $1M 27 11.79%
$1M - $1.5M 55 24.02%
$1.6M - $2M 27 11.79%
$2M - $3M 54 23.58%
$3M - $4M 26 11.35%
$4M - $5M 8 3.49%
$5M - $6M 6 2.62%
>$6M 14 6.11%
Voters: 229. You may not vote on this poll

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Old 02-05-2013, 04:02 PM   #21
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I voted, and used the value when we retired, and it included:

Savings, which includes the money from the sale of our house shortly before ER (we now rent).
Value of non-COLA annual pension * 15

I did not include our expected US SS's, or my UK SS
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Old 02-05-2013, 04:05 PM   #22
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Net worth is net worth, and is a snap shot at a point in time. The question of whether one should include home equity had been endlessly debated, and arguments for and against both have some basis for their claims. But future streams of income, whether they are rental income, pension, social security benefits, dividends are not, and should not be,included as part of the net worth calculation today.
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Old 02-05-2013, 04:18 PM   #23
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I added a net present value for my pension and DW's SS, and the savings DW and I were satisfied would meet our additional expenses and called that composite figure our "number." That is not the same thing as our net worth but isn't actually that far off.
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Old 02-05-2013, 04:21 PM   #24
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I voted. (Despite my questions about what to put).

I included the income stream from rental income (which I lowballed). The rental is on our property - which will be paid off next year - so I didn't include equity or debt. I'm awfully close to my "number" - but want the house paid off before I pull the plug. Firecalc and Quicken say I'm good... but I'm holding out for a severance package or mortgage free status before I pull the plug.

That and I worry that W2R said "wheee" last week and I've just recently hit the number... so it's kind of close to the edge. Fear keeps me at work for now.
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Old 02-05-2013, 04:21 PM   #25
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But future streams of income, whether they are rental income, pension, social security benefits, dividends are not, and should not. be included as part of the net worth calculation today.
I agree, which is why I included the pensions I am currently receiving, and not the ones in my future. (I have another private pension due to start in 4 years, then we have 3 streams of future income for our US and UK SS).

I never had a "number" as a target. I used FIRECALC, Financial Engines and Fidelity RIP as my guides. All 3 calculators use your current day savings, future projected contributions, and expected income streams, along with other data to give a range of feasible incomes for specific target dates.
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Old 02-05-2013, 04:29 PM   #26
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I included our house. I multiplied the square footage x the sum of DW and my shoe sizes x 25. Close enough.
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Old 02-05-2013, 04:31 PM   #27
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I included our house. I multiplied the square footage x the sum of DW and my shoe sizes x 25. Close enough.
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Old 02-05-2013, 04:44 PM   #28
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Voted based on target number (which is actually a bit less than we currently have due to a combination of a good run in the markets and falling victim to "just one more year" syndrome).

I included home equity as part of our net worth and a relevant factor in our retirement plans. If I had any pension, SS etc I would have included a guestimate of the net present value of that for the same reason. If the purpose of the poll is to provide some kind of assessment on what it takes for responders' to retire, then both should be included otherwise the data is pretty meaningless.
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Old 02-05-2013, 04:49 PM   #29
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Quote:
Originally Posted by SumDay
In this thread, I asked if there's ever been a net worth poll survey/done on this board, and if anyone would participate. It appears there's some interest. However, I'm not a statistician by any stretch of the imagination. If you want minutia, read this 80 page Federal Reserve survey on consumer finances & net worth. <yawn>

I struggled with how to ask this, and decided to pilfer from ING and ask everyone this simple question: What's your number? In other words, how much retirement savings do (or did) you really need in order to leave the w*rkforce for good?

Obviously polling capabilities on this board are pretty limited, so it will be this one question which will provide us with anonymous results.

I know there a a bazillion variables. I'm just trying to make it simple. This is an off the cuff, down & dirty comparison.

I'm sure there are people who will question the integrity of this, but it isn't meant to be presented to congress or anything. If you'd like to run a similar survey with more detail and data points, please do. I'd love to respond, I love surveys.

Looking at the Fed data, the past 9 years have been rough on many. In my bracket (college bachelor degree) the median has dropped from like 262k to 190k.
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Old 02-05-2013, 05:04 PM   #30
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I included our house. I multiplied the square footage x the sum of DW and my shoe sizes x 25. Close enough.
I included my house, too. In my case, it was the square footage x my shoe size x 10.7. Close enough.*
Didn't include my itsy bitsy teeny weeny yellow polkadot bikini FERS pension or SS.


* (The product also happens to be identical to the purchase price back in 2002. )
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Old 02-05-2013, 05:08 PM   #31
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i thought the definition of net worth was the total of all assets minus all liabilities.
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Old 02-05-2013, 05:12 PM   #32
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My number is based on today's net worth which consist of cash, index funds, equities, bonds, rental properties, HSA, and 529 (college funds).

I included a conservative number (net value - deduction for sales commission/taxes) for my rental properties as I might sell them in the future as we have a desire to travel if/when kids are in college.

I included 529 funds (currently $100k, $150k by end of 2015) as the intended use may/may not happen and/or needed. Kids are still young, but funds will be good enough for state university for 4 years each. I'm hoping time is on our side as they are 12-14 years away from attendance.

My number does not include primary residence ($275k, paid off), non-cola pension ($10k/yr with 100% survivor benefit @ age 55), and SS (estimated at $20k/yr @ age 62).

Some may disagree with including HSA and 529 funding, but that's life.

*** edit to add: age 43, turning 44 in 2013, 2 young kids, 1 dog, reasonable Midwest cost of living area, but could be cheaper, will probably work contract assignments until 48 - 50, then semi-retire to landlording for awhile.
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Old 02-05-2013, 05:54 PM   #33
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My number includes the value of stocks, bonds, cash, and rental real estate.
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Old 02-05-2013, 06:04 PM   #34
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I know the definition of net worth, however I spend no time bothering to calculate it. The only important number for me is the value of our liquid investments. I have played with our second home value but still don't count it. That's part of plan B or C.
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Old 02-05-2013, 06:06 PM   #35
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I voted before reading the posts. I used the approach below.
Quote:
Originally Posted by rodi View Post
* savings/investments.
* equity in real estate/home.
* pension = 25* annual payout (or something like that.)
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Old 02-05-2013, 06:32 PM   #36
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Need to do another that asks the age of those who voted in this one.
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Old 02-05-2013, 06:35 PM   #37
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Need to do another that asks the age of those who voted in this one.
Good point... then you have to ask single, # of spouse, kids, pets, cost of living location, annual expense, good looking if single .... it's endless.
but important as it impacted my number.

Edit - No offense to the OP, kidding in some sense but some of the above variables were considered in my pursuit of FI, the number can become very personal and detailed considering "bazillion variables" as the OP stated in the original post.
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Old 02-05-2013, 06:39 PM   #38
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I put the amount we had at retirement two years ago. Did not include my pension, home equity, or SS (for which we will both be eligible).
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Old 02-05-2013, 06:45 PM   #39
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I included my house, too. In my case, it was the square footage x my shoe size x 10.7. Close enough.*
Didn't include my itsy bitsy teeny weeny yellow polkadot bikini FERS pension or SS.


* (The product also happens to be identical to the purchase price back in 2002. )
If I include my shoe size in the numerator, my number is HUGE. (I have very big feet.)
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Old 02-05-2013, 06:55 PM   #40
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Quote:
Good point... then you have to ask single, # of spouse, kids, pets, cost of living location, annual expense, good looking if single .... it's endless.
but important as it impacted my number.
If someone (or a group of someones) wants to put together a more complex survey, I'll be glad to put it in Survey Monkey (anonymous) and run it here.

It would be interesting. We use Survey Monkey at work all the time. I'd want someone else to come up with the questions though.
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