View Poll Results: Net worth: by person, or household?
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Household
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129 |
86.00% |
Each individual
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15 |
10.00% |
Other, see thread
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6 |
4.00% |
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Household or individual NW?
09-09-2020, 07:24 AM
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#1
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Thinks s/he gets paid by the post
Join Date: May 2016
Location: Mid-Atlantic
Posts: 2,654
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Household or individual NW?
I've seen this mentioned a few times recently, so I'm curious; do you think NW should be calculated per household, or per individual?
__________________
-Looking to FIRE in the mid-2020s, which would be our mid-50s.
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09-09-2020, 07:26 AM
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#2
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Thinks s/he gets paid by the post
Join Date: Mar 2012
Posts: 3,931
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I would think it depends on your intended objective/use in calculating the net worth.
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09-09-2020, 07:28 AM
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#3
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Thinks s/he gets paid by the post
Join Date: May 2016
Location: Mid-Atlantic
Posts: 2,654
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Personally, I always look at our household NW, because we have one checking account, and although we have separate 401(k)s and Roth IRAs, I count my inherited IRAs as "ours". More importantly, we pay bills as a household, so expenses aren't easily separated.
I know some couples maintain separate banking and credit card accounts, nothing wrong with that if that's what works for you, so for people like that I suppose separate NW makes more sense.
__________________
-Looking to FIRE in the mid-2020s, which would be our mid-50s.
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09-09-2020, 07:34 AM
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#4
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Recycles dryer sheets
Join Date: Jun 2013
Posts: 337
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My rule is household if legally married. Individual otherwise, even if cohabiting. The exactly details of how you calculate NW is really up to you though, and largely meaningless to others.
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09-09-2020, 07:55 AM
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#5
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Thinks s/he gets paid by the post
Join Date: Aug 2014
Location: Chicago West Burbs
Posts: 2,998
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We count only household NW. We've been married 47 years next month. I doubt anything will change on that front. Neither of us have any mine-vs-yours children. We are both beneficiaries on our individually owned IRAs. Why separate that which was common property all these years? Under different circumstances, maybe I would be inclined to separate the NW's.
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09-09-2020, 07:56 AM
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#6
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2003
Location: Florida's First Coast
Posts: 7,666
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Quote:
Originally Posted by The Cosmic Avenger
Personally, I always look at our household NW, because we have one checking account, and although we have separate 401(k)s and Roth IRAs, I count my inherited IRAs as "ours". More importantly, we pay bills as a household, so expenses aren't easily separated.
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As do we.
__________________
"Never Argue With a Fool, Onlookers May Not Be Able To Tell the Difference." - Mark Twain
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09-09-2020, 07:59 AM
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#7
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,007
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Most studies and all government studies AFAIK use household NW. Works for me.
__________________
Retired since summer 1999.
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09-09-2020, 08:03 AM
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#8
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Recycles dryer sheets
Join Date: Jun 2017
Location: Cincinnati
Posts: 489
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DW and I use household net worth
__________________
ER Target = May 2024
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09-09-2020, 08:18 AM
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#9
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2015
Posts: 5,803
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We use Household here, also.
__________________
Give a Man a fish, he will eat for a day.
Teach a Man to fish, he will eat for a lifetime.
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09-09-2020, 08:34 AM
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#10
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2007
Posts: 13,202
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Household. I also think any published study should specify whether they mean household or person. It leads to confusion when they don't.
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09-09-2020, 08:40 AM
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#11
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Moderator Emeritus
Join Date: Jan 2007
Location: New Orleans
Posts: 47,473
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Quote:
Originally Posted by njhowie
I would think it depends on your intended objective/use in calculating the net worth.
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+1
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.
Happily retired since 2009, at age 61. Best years of my life by far!
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09-09-2020, 09:20 AM
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#12
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Thinks s/he gets paid by the post
Join Date: Feb 2012
Posts: 1,495
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Always have thought of it as household. After 50+ years of marriage separating us out as individual financial entities does not compute.
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09-09-2020, 09:27 AM
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#13
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2013
Location: Texas
Posts: 10,863
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I calculate it as households NW...
__________________
20's "something" mind, trapped in a 70's "something" body
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09-09-2020, 10:04 AM
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#14
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,004
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Household. After 52 years of marriage everything kinda blends together.
__________________
Numbers is hard
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09-09-2020, 10:06 AM
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#15
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Moderator
Join Date: Nov 2015
Posts: 13,879
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Household, if you are married/partnered under the same roof.
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09-09-2020, 10:10 AM
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#16
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Administrator
Join Date: Apr 2006
Posts: 22,973
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In the Gumby household, what's hers is hers, and what's mine is also hers. So she has a very high net worth; me not so much.
Nah, not really. We started out together with nothing. In the intervening 36.5 years, everything we've acquired has been the result of a team effort. We've only ever had a joint bank account.
__________________
Living an analog life in the Digital Age.
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09-09-2020, 10:13 AM
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#17
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Recycles dryer sheets
Join Date: Mar 2012
Location: Atlanta
Posts: 415
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I have been with DGF for 27 years so, although not married, I often forget we aren't. I would have to say household at this point. When someone ask's why we aren't married, we tell them we are still trying to make sure we are compatible.
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09-09-2020, 10:19 AM
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#18
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Moderator Emeritus
Join Date: Aug 2007
Location: Northern Illinois
Posts: 16,543
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Net worth is the sum of all assets minus liabilities. I don't know the value of my non-portfolio assets, so I don't calculate it. I calculate value of my portfolio only. I can guess DW's portfolio value or ask her if need be. But she handles her $ and I handle mine.
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09-09-2020, 10:28 AM
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#19
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gone traveling
Join Date: Dec 2015
Location: Berkeley, Denver, CO, USA
Posts: 1,406
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Quote:
Originally Posted by The Cosmic Avenger
I've seen this mentioned a few times recently, so I'm curious; do you think NW should be calculated per household, or per individual?
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Are you preparing for divorce?
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09-09-2020, 10:34 AM
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#20
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Thinks s/he gets paid by the post
Join Date: Jun 2014
Posts: 1,188
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Most literature is household income, so I assume that means whoever you are sharing finances with regardless of marital status.
We co-habitate and track both separately and together since we want to be aware of what happens if we part ways.
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