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Old 12-15-2020, 09:49 AM   #21
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Severance is not an asset, there's a good chance you will never see it. Anyways, NW is a number that is just for fun. It's not really useful for any financial planning.
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Old 12-15-2020, 10:11 AM   #22
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I always enjoy these net worth threads. Net worth is something like a Rohrschach test for ER members - it's open to interpretation and says as much about the individual's philosophy and priorities as it does about the assets they own.

In the context of the OP's question I'd calculate two NW's: current and potential, the latter including severance. If you use NW for planning purposes I'd use both as bounding cases - something like worst and best case scenarios.

If like me, however, you use NW as nothing more than a warm security blanket that doesn't directly impact financial planning then you might as well include everything in it.
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Old 12-15-2020, 10:17 AM   #23
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I don't count the value of company policies in my net worth.

I don't even count the value of my home..currently under 10% of my total net worth...hopefully under 5% within the next several years.
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Old 12-15-2020, 10:47 AM   #24
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In March of this year when covid-19 was beginning to rage, DH's company changed their severance policy, in effect dramatically reducing it for long term employees such as him. He was furloughed in April and let go October 1 under the new severance rules. Didn't even get any consideration for unused vacation time! So, no, I wouldn't include severance value in a net worth calculation.
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Old 12-15-2020, 10:53 AM   #25
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Quote:
Originally Posted by sengsational View Post
The term "Net Worth" has a specific meaning, so including that as part of the OP tends to bring out a well-worn "discussion" that hopefully won't be rehashed.
....
Quote:
Originally Posted by ncbill View Post
I don't count the value of company policies in my net worth.

I don't even count the value of my home..currently under 10% of my total net worth...hopefully under 5% within the next several years.
And we're off...
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Old 12-15-2020, 12:00 PM   #26
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Net worth is your calculation, to be used however you wish to use it. Include your purebred dog and your collection of Elvis records if you like.

If the calculation is for a bank loan application and they pay close attention (somewhat doubtful) they might say no.
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Old 12-15-2020, 12:25 PM   #27
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Nope. Just consider it a part of your back-up plan. If this - then that. But hope "this" never happens.
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Old 12-15-2020, 08:29 PM   #28
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Hello, I’m wondering if I should include a guaranteed severance in my net worth calculations today? Specifically, I work in a job that guarantees severance pay if I were to get fired and I’m not planning on quitting For the foreseeable future. When calculating my net worth today, should I include that severance pay into my net worth?
i wouldn't...not until you receive it.
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