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Old 07-01-2017, 02:38 PM   #21
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Savings accounts and checking are just about the only numbers I keep more or less in mind at all times. I want to know if any expenditure might cause me to get into invested funds. I do keep a significant balance in these two just so I don't find myself micromanaging my investments to tweek out enough funds to cover a purchase. It's just easier. SO when I do a NW, maybe once a year, I do include my significant check book/savings balances. YMMV
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Old 07-01-2017, 02:47 PM   #22
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Quote:
Originally Posted by jimbee View Post
Net worth = assets - liabilities

Checking and savings accounts are assets.
+1

Why would these assets not be counted in net worth? Pretty sure the IRS will count them when valuing one's estate.
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Old 07-01-2017, 03:01 PM   #23
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No, only investments included. I don't even include paid for house since I'll always need it or its value equivalent to live in. Damn sure wouldn't include my half interest in a sailboat....it eats in about five years what it's "net worth" is...
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Old 07-01-2017, 03:09 PM   #24
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All assets are included in my net worth. So yes, this includes checking and savings as well as unpaid credit card balances.

I also look at my liquid assets which excludes the house. The house is the only real asset I include in Quicken.
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Old 07-01-2017, 03:20 PM   #25
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I use the Net Worth report in Moneydance to calculate my net worth. It includes all my financial accounts, including checking and savings, and subtracts my current debt (credit cards only since my house and car are paid off). I think it would include the value of my house and car if I tracked them in Moneydance, but I don't so it doesn't.
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Old 07-01-2017, 04:38 PM   #26
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Not checking accounts, they are always in flux, and not the smaller saving accounts that I use to "feed" my checking accounts at tax time. My DF used to keep at least six figures in his checking account but that is not the case with me.
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Old 07-01-2017, 04:51 PM   #27
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Quote:
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+1

Why would these assets not be counted in net worth? Pretty sure the IRS will count them when valuing one's estate.
I can confirm that they do. My Mom's estate attorney even asked us about "cash on hand", which I imagine technically also includes change under the sofa cushions. Since it was six months after the fact we sorta estimated. The attorney dutifully included that in all of the relevant totals and paperwork. Given the small number it was not material to anything, but my Dad wanted to do everything by the book as much as possible and so I respected his preferences.
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Old 07-01-2017, 05:09 PM   #28
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For me net worth isn't something I track like I do my portfolio and cash/savings accounts. I do include checking account and any savings account that makes interest so I get an accurate number to see where I'm at each month/year.

In net worth everything goes in, too come up with NW.
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Old 07-01-2017, 05:18 PM   #29
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I include checking and savings in NW. Our cash allocation is currently at 3%, with most of that at Ally and the rest in our CMA at Fidelity. Not a huge sum, but certainly easy enough to include for completeness.

NW has been a useful tracking tool for us mainly due to rental real estate transactions and the fact that we plan to downsize our main home by about half at some point. Under those circumstances, it is important to keep an eye on all the pieces. YMMV.
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Old 07-01-2017, 05:20 PM   #30
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As a matter of simplification I do include bank accounts in my NW calculations. It is done linked automatically in my Fidelity Full View webpage. Why not? Since my investment accounts vary on a daily basis, why not include my bank account that also varies? It doesn't include checks that I have written and not cleared the bank. nor does it include payments that I have scheduled in the future.

Funny though, I don't consider my credit card accounts. I'm funny that way.
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Old 07-01-2017, 05:44 PM   #31
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I don't have a clue what my net worth daily, I only know roughly. I don't have Quicken either. It's impractical especially if you have real estate. Who knows how much its actual value until you sell it.
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Old 07-01-2017, 06:59 PM   #32
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I do, but on the home I stopped the appreciation about 6 months ago. DW calls it "funny math" when I put a basic appreciation %. I likely have a $50k under estimation on my home for this reason...
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Old 07-01-2017, 07:39 PM   #33
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I only keep about $1000 in my non-interest-paying checking account. I don't count it because it's always a low amount and it is by definition meant for short term spending. So, I don't count checking, or my house value, or my sinking find for future expenses (e.g., future new car purchase). I'm not concerned with Net Worth, per se, but rather my total [spendable] assets for purposes of determining SWR.
My sinking fund is money that will likely be spent in the next several years so that shouldn't be considered part of "net worth." I have to live somewhere, and frankly I like where I live. So, it's unrealistic to put a value on my house when I don't intend to leave any time soon.
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Old 07-01-2017, 07:45 PM   #34
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Nope. I mean I would if I calculated my net worth but I don't.
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Old 07-01-2017, 07:59 PM   #35
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Since you are calculating net worth then definitely. Also include any credits card outstanding as reductions.


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Old 07-01-2017, 08:25 PM   #36
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I don't have a clue what my net worth daily, I only know roughly. I don't have Quicken either. It's impractical especially if you have real estate. Who knows how much its actual value until you sell it.
Couldn't agree more. Complicated asset structures make a monthly net worth calculation very difficult and time consuming to say the least.

Checking and Savings accounts. Balances are way to high right now. As another poster said "if the balances get below $20K, I feel like I'm living paycheck to paycheck."
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Old 07-01-2017, 08:30 PM   #37
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Absolutely. In addition to settlement accounts, I have two sizable savings/checking accounts with 18-24 months worth of expenses. Itís part of my hedge against sequence of risk. Iíll reduce it once we start collecting SS.
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Old 07-01-2017, 08:33 PM   #38
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In what context is the "net worth" you are inquiring about?

Straight net worth includes checking accounts, the coins in the cushions, the car, the yard sale value of the clothes in the closet, etc.

Or are you considering the total value of assets used to calculate a withdrawal rate, perhaps? In that case, I include everything in the bank, the brokerage, etc, including the checking account, but I don't bother with the money in my wallet at any given time. It's just too little to futz with.
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Old 07-01-2017, 09:13 PM   #39
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Nope. I mean I would if I calculated my net worth but I don't.
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Old 07-01-2017, 09:47 PM   #40
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Absolutely. Never even crossed my mind not to count them.
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