Looking for some thoughts on how to get my head around the change in my net worth given that I took a pension versus the lump sum.
Up until now, when I looked at things like my net worth, my investment performance and my potential withdrawal rate, I've handled my pension as the lump sum amount. However, this year, I had to decide on either the lump sum or the pension (monthly payment) and chose the pension. Now I'm looking at my year end results and am coming to terms with the change required. In round numbers, I had $2M in investments which included the lump sum estimate of my pension of $500K. So now my net worth has to reflect that. So now I have $1.5M, or said another way, my net worth just dropped by $500K or about 25%.