No it can't, IMHO.
you have the right to have your opinion but let me point out a few things.
It only has "value" while you are alive.
therefore it has value, no quotes required If it has survivor benefits, it will only have value while the survivor is alive.
It can't be measured or used in a legal sense to show total estate assets
this is true only from a probate perspective (what i mean by this is that someone who is interested in how your estate will be dispersed after you die wont be interested in knowing about income flows that stop at your death) however such income flows (eg, DB pensions, SS, SPIAs) are of value in such activities as borrowing money etc. as you point out in the following., but it does have value if you wish to buy or rent under a retail contract, since those usually require a constant source of income
actually if you have enough liquid assets a constant source of income isnt required, you see the 2 are often interchangable, we often do the same (interchange an income flow with liquid assets) on this board by using the 25x (or 33x or whatever multiplier you are comfortable with) rule.
It's no different than looking at SS in the same manner
agreed, SS has value too and not just what you state in the following. If I die first, my DW will get the increased SS over hers, measured as what I would have received on the day before my death (we're both retired and of SS age). However, once she dies there is no way the "value" can be passed on to our estate beneficiaries
this is true but that doesnt mean it didnt have value while you and or your wife were living.
We provide an updated net worth document to our elder law every year since his firm is in charge of liquidating our estate
since their purpose is specificly liquidating your assets that remain after you die your next sentance follows of course but that doesnt change the fact that while either of you are alive any cash flows you have are valuable. "Temporary" income sources are not counted as part of that "
liquidatable estate net worth
after death" but the value of items such as life insurance and SPIA residual value (if we both die before the end of the guaranteed period) do have
residual value.
BTW, if you are still wo*king, do you consider your pay part of your net worth (beyond the portion you are saving/investing)? Pensions/SS are no different
not so, to get income from your job you have to keep working (you are trading human effort for money) but to get income from a pension/SS already earned or a SPIA already purchased all you have to do is stay alive (no trading of labor is required as they are already paid for). if these income streams have no value how can an insurance company collect any money for an SPIA?.
Just another rehash of an old subject
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