What do you include? Retirement accounts, cash, house, other investments, anything else? Do you discount your 401k balance since it's subject to taxes? Use Zestimate for home equity, triangulate from the latest appraisal and housing cost trends, or something else? I'm curious what mine is but my house is most of it and I'm not sure how to properly value it. I'm not interested in Blind dick measuring, but in figuring out timelines for FIRE, etc., and also Blind dick measuring. TC: 0 (between jobs)
Yep that’s about it... assets minus liability. For house pick what you think a reasonable sales price is minus what you owe. Financial advisors I’ve talked to seem to use your investment and 401k values and ignore and costs and taxes to sell. If you have a whole life insurance policy might be cash value there.
Some people count cars but it seems too small to worry about unless you’re a baller with a garage full of Ferraris
House in which you live is a tricky item. Ideally you should only count the part that is not a shelter expense. You need to live somewhere, so the expense that is associated with it can’t be an investment. Since it’s difficult to account for advisers sometimes don’t count it at all, which is a rather conservative assumption. Having most of your assets in real estate is not my cup of tea. It’s an illiquid asset, at best if asset at all as I mentioned. My own preference is to have a negligible amount of money locked in living house, and some , maybe 10-15% exposure to real estate investment through traded securities.
Yes and :-) house your in now is investment you use to find house in retirement when you’ll likely downsize etc. agree good to keep house out of it, but it is long term investment you should account for. Ymmv
Everything is net present value and market rate ie. Zestimate/Redfin/Comp Sales if it is an accurate market value
Assets - liabilities. But if more interested in FIRE then don’t use net worth but investible assets. Or investable assets + reoccurring revenue of own rentals or have passive income. Net worth is really primarily useful for estate taxes, other purposes should use a different calculation
Terrible players. You give them all the passwords and they snoop around your finances, every transaction, sorted and tagged by you for them to pray on. No way
Assets - Liabilities. All non-liquid assets are estimates. NW is not a precise number. Doing tax calc on 401k is overkill (IMHO)