Part 2: Watcha worth?

[mathjak107]

money may not buy happiness but it sure makes misery better..
problem with counting ones home in net worth is its not spendible to live on unless you sell it.sure you can take loans against it but they are still loans.anyone cant take loans even if you dont have a house..its kind of like counting someone elses money as your own in that question because you may inheirt that money some day...

[2B]

This is a little late in the thread for another critical comment about the calculation but here goes. Multiplying pensions or annuities by 25 inflates the real value of a fixed income stream. There is no inflation protection for it so it should be discounted. The value of an asset generating an income stream from the stock market (at a 4% withdrawl rate) is worth more than the value of a fixed income stream.

[retire@40]

Quote:

Originally Posted by Soon2B This is a little late in the thread for another critical comment about the calculation but here goes.* Multiplying pensions or annuities by 25 inflates the real value of a fixed income stream.* There is no inflation protection for it so it should be discounted.* The value of an asset generating an income stream from the stock market (at a 4% withdrawl rate) is worth more than the value of a fixed income stream.

You are right. You need to calculate the net present value of those future income streams to get a better idea of the lump sum value today.

[bosco]

Quote:

Originally Posted by Cute 'n' Fuzzy Bunny Why isnt mortgage debt considered?

If you read the question carefully, you'll realize that mortgage debt is implicitly considered.

It asks for home equity. This would be home value less mortgage. So I think your point is incorrect--big mortgages would not inflate the bottom line.

[cute fuzzy bunny]

If you read the thread carefully, you'll see that I already got spanked for that.

[lazygood4nothinbum]

Quote:

Originally Posted by Cute 'n' Fuzzy Bunny if you've got plenty of money and great sex, you're probably in the clear!

economists david g. blanchflower & andrew j. oswald conclude that "money does seem to buy greater happiness. but it does not buy more sex."

http://tinyurl.com/jtw2z


EDIT: Shortened URL

[Nords]

Quote:

Originally Posted by lazygood4nothinbum economists david g. blanchflower & andrew j. oswald conclude that "money does seem to buy greater happiness. but it does not buy more sex."

Apparently they failed to consult with their Fidelity counterparts.

Good thing they weren't studying dwarves...

[free4now]

Some people's nest egg provides for just themselves, while other people's nest egg provides for their partners too. I think this muddies things up a bit... one person living off 2 million dollars is in a different financial strata from 2 people living off 2 million.

Maybe the next survey should have "divide by number of adults supported"? Since two people can usually live cheaper than twice one person, maybe we'd need some scaling factor, like for two people divide by 1.6 (just a number I pulled out of my hat).

[haha]

Quote:

Originally Posted by lazygood4nothinbum economists david g. blanchflower & andrew j. oswald conclude that "money does seem to buy greater happiness. but it does not buy more sex." http://tinyurl.com/jtw2z EDIT:* Shortened URL

Interesting article. I have trouble believing the finding that half of women over 40 had 0 sex partners in the previous year. I haven't met many women that couldn't get sex, almost any day.

Still, from observation I have generated a theory about sex and older unattached people. The problem that a sex-seeking man faces is finding a woman who wants to have sex with him. The problem to be solved by the sex-seeking woman is different- she must find a man that she wants to have sex with.

Another observation--lots of middle aged men would do better if they made more effort at personal hygiene, and made at least a small genuflection toward style in clothing. And maybe shut down the engineer talk when having drinks with a woman. More than once I have watched while a guy talked himself from the woman thinking “He is interesting, not too bad looking, I’m lonely-maybe tonight?” to” Oh my god if he doesn’t stop talking I am going to scream.”

Ha