Is there any thread or poll where we stand

[street]

I just have a question if you of an old thread that is about where the people that come here rank in wealth? Now I know this really is no one else's business and can be a very private matter. I was looing back but couldn't find an old thread on your NW or what your portfolio is worth excluding material things.

I know of another site and they have one each year and people are anonymous and it gives you an idea where you are at to others.

Thanks

 

[MichaelB]

Here's a poll on net worth http://www.early-retirement.org/forums/f28/net-worth-poll-55244.html

 

[street]

Thanks and interesting to see those numbers. I'm among the rich and the famous! Lol

 

[braumeister]

If you can figure out a way to define the terms ("net worth" seems to be especially slippery, just as an example), then I'm sure there would be a good level of participation.

The devil is in the details.

 

[Katiek]

And I don't believe the poll takes into account pensions, which have a big impact on spendable wealth.

 

[Johanson]

And I don't believe the poll takes into account pensions, which have a big impact on spendable wealth.

I figure my pension in my net worth. Mine has a lump sum value that I use. I plan on taking it as an annuity when I retire though.

 

[Bestwifeever]

I love polls about net worth--most of the discussion start with how to define it and other terms, and we're off.

 

[COcheesehead]

Net worth is a simple calculation: assets - liabilities. Pension income should be looked at as part of cash flow and not a defined asset included in net worth, unless it has a lump sum option that can be defined.
Should I include future dividend payments in my net worth calculation, no. See the point?

 

[braumeister]

Net worth is a simple calculation

As a relative newcomer to this forum, I suspect you have no idea how many smiles that statement will provoke here.

 

[REWahoo]

As a relative newcomer to this forum, I suspect you have no idea how many smiles that statement will provoke here.

 

[Bestwifeever]

Net worth is a simple calculation: assets - liabilities. Pension income should be looked at as part of cash flow and not a defined asset included in net worth, unless it has a lump sum option that can be defined.
Should I include future dividend payments in my net worth calculation, no. See the point?

You should start a poll.

 

[COcheesehead]

You should start a poll.

I thought about it.

 

[COcheesehead]

As a relative newcomer to this forum, I suspect you have no idea how many smiles that statement will provoke here.

Maybe my fresh perspective is just want is needed around here.

 

[RunningBum]

There are no more fresh perspectives left to be had.

 

[Bestwifeever]

Maybe my fresh perspective is just want is needed around here.

You should start a poll on that too

Just kidding--fresh perspectives are good.

 

[COcheesehead]

There are no more fresh perspectives left to be had.

Well I can at least add my semi delusional ones then.

 

[Meadbh]

Maybe my fresh perspective is just want is needed around here.

I've tried, many times, to teach people the definition of net worth, but on this forum it means whatever you want it to mean. I have given up.

 

[rodi]

Net worth is a simple calculation: assets - liabilities. Pension income should be looked at as part of cash flow and not a defined asset included in net worth, unless it has a lump sum option that can be defined.
Should I include future dividend payments in my net worth calculation, no. See the point?

LOL... Not only is pension one of the issues that gets discussed in detail whenever net worth comes up... don't forget primary homes, etc...

And definitely don't forget credit card points.

 

[REWahoo]

i've tried, many times, to [-]teach[/-] convince people to adopt [-]the[/-] my definition of net worth, but on this forum it means whatever you want it to mean. I have given up.

fify

 

[NW-Bound]

I've tried, many times, to teach people the definition of net worth, but on this forum it means whatever you want it to mean. I have given up.

I think people knew what net worth is, but they were trying to make the point that only investable assets are meaningful for the purpose of generating cash flow to maintain the existing lifestyle, and also to support the other "cash draining" assets.

 

[braumeister]

Maybe my fresh perspective is just want is needed around here.

Please don't take it personally.

I was just pointing out that there is often great amusement here when people start quibbling over what they want net worth to mean.

As you can see already.

 

[Meadbh]

I think people knew what net worth is, but they were trying to make the point that only investable assets are meaningful for the purpose of generating cash flow to maintain the existing lifestyle, and also to support the other "cash draining" assets.

I do understand this concept. However, if you are discussing investable assets, call them investable assets. Definitions need to be consistent. Otherwise we are comparing apples and oranges.

 

[Chuckanut]

Pension income should be looked at as part of cash flow and not a defined asset included in net worth, unless it has a lump sum option that can be defined.

Whoa there Pilgrim! I beg to disagree. Sort of.......

One's pension is an income producing "Phantom" asset. But, it is real. We just don't know how to evaluate it.


Suppose one has a pension of $1000 a month for life. The pensioner lives for 5 years and collects $60,000. So, that pension could be said to have the value of aprox $56,600 assuming it earns 3% a year, no inflation adjustments and is zeroed out after the 5 years.

OTOH, if our pensioner lives 35 more years with the same assumptions, the pension has a phantom value of over $265,000.

Just because we don't know the pension's value until death, doesn't mean it doesn't have a value, IMHO.

Perhaps an accountant can tell us what the official accounting rules say about pensions.

 

[NW-Bound]

I do understand this concept. However, if you are discussing investable assets, call them investable assets. Definitions need to be consistent. Otherwise we are comparing apples and oranges.

Agree.

When people try to see where how their finances fit among peers, the net worth number is better to see how much one manages to keep.

The distinction of investable assets becomes important when newcomers try to understand what it takes to retire early. This is actually better grasped with an understanding of SWR.

 

[COcheesehead]

I think people knew what net worth is, but they were trying to make the point that only investable assets are meaningful for the purpose of generating cash flow to maintain the existing lifestyle, and also to support the other "cash draining" assets.

Apples and oranges. Net worth is net worth. It is a defined point in time. It is like your bank balance. It is what it is. Now how you manage your assets to generate cash flow is another story.