Winemaker
Thinks s/he gets paid by the post
It's easy enough to ignore a thread if you don't care to see it. It won't even pop up on the list anymore.
For me, how to account for my future pension and SS is something I'm least sure I'm calculating correctly. Some say considering it in my net worth (with respect to calculating my withdrawal amount allowed) is incorrect, but I've yet to see a good alternative. So I'll continue to throw it in as an asset based on what it would cost to buy a similar annuity until someone comes up with a better way. Once I start taking them, I'll just take it out of my net worth and use at as a reduction of expenses, and calculate my withdrawal to cover the rest.
You are misconstruing my comment. If you have a pension (like DW and I do) that gives you a positive cash flow, how would you value it? The same way as a either a income source or a asset source, as a rental property (as DW and I do)?
I, for one, do not include rental income as portfolio income in my plan, despite receiving $8-22k/year. The rentals have to be cash positive and stand alone, but I do count their cost as part of my asset/net worth. They have gone up in value, but I use their cost in my balance sheet.
Conversely, i do not count our pensions as assets, as they can very well be bankrupt or reduced. They both are joint lived. But I do count their cashflow as part of my plan as they are immediately paying cash.
When I created my FIREplan, DW and I were living comfortably on our net salaries. After monitoring expenses for three years, I created my plan to provide the same pre-FIRE income with a 5% boost each year.
And the same thing can be said for placing a value on SS benefits. They provide an income for some, but for those of us not collecting benefits yet, it would be difficult as we don't know exactly when we would file, or whether the benefit would be trimmed, means tested or one of us croaks.