My net worth

[Anonymous]

Curious, OP and others who post about your net worth, is it your collective household net worth or your individual net worth? Maybe I'm insecure in my marriage, but I only calculate my net worth based on accounts I control and ignore home equity. If we could get divorced someday, or DH could die and leave a meaningful portion of "his" estate to people other than me, then it was never really mine to begin with. I don't know. DH has more money than I do, so I feel pretty safe that what's mine is mine, but I don't count what I don't control.

[Anonymous]

Anonymous wrote:Curious, OP and others who post about your net worth, is it your collective household net worth or your individual net worth? Maybe I'm insecure in my marriage, but I only calculate my net worth based on accounts I control and ignore home equity. If we could get divorced someday, or DH could die and leave a meaningful portion of "his" estate to people other than me, then it was never really mine to begin with. I don't know. DH has more money than I do, so I feel pretty safe that what's mine is mine, but I don't count what I don't control.

NP here. I calculate my net worth based on accounts I control and half of my home equity (we contributed equally to the house).

[Anonymous]

Anonymous wrote:Curious, OP and others who post about your net worth, is it your collective household net worth or your individual net worth? Maybe I'm insecure in my marriage, but I only calculate my net worth based on accounts I control and ignore home equity. If we could get divorced someday, or DH could die and leave a meaningful portion of "his" estate to people other than me, then it was never really mine to begin with. I don't know. DH has more money than I do, so I feel pretty safe that what's mine is mine, but I don't count what I don't control.

I calculate my NW, DH's NW and joint NW. Our goal is maximizing inheritance for our children. DH an older retiree and in poor health; we have decided that each of us will leave everything but our house to the children for state estate tax reasons.

[Anonymous]

Anonymous wrote:Curious, OP and others who post about your net worth, is it your collective household net worth or your individual net worth? Maybe I'm insecure in my marriage, but I only calculate my net worth based on accounts I control and ignore home equity. If we could get divorced someday, or DH could die and leave a meaningful portion of "his" estate to people other than me, then it was never really mine to begin with. I don't know. DH has more money than I do, so I feel pretty safe that what's mine is mine, but I don't count what I don't control.

Textbook definition of Net Worth includes primary residence but a lot of people exclude it for retirement income/cashflow planning given that for all practical purposes it can't be accessed as easily as financial assets, and you'll always need a roof over your head. If you are low net worth (say under $3M) it might make sense to include it to make one feel good. Once you get past $5M-$6M it doesn't matter and it just becomes an academic exercise. Obviously a primary residence IS an asset and should be part of legal and estate planning discussions.

We live in a modest house (value has always hovered just below the median value for the county we live in), have about 70% equity now, lived in it for over 20 years but have never included it in our financial planning models, not when out ex-PR NW was < $1M, certainly not when it is >$10M, where it sits today. We completely ignore the asset and associated liability in our models and include the monthly mortgage payment as an expense. We do include our one vacation home since the purpose of that purchase was as an investment.

[Anonymous]

OP, provide some details. How old are you? Are you retired or still working at full steam ahead? You obviously don’t “need to work” for money, unless your goal is a yatch

I’m aiming for 2.5M myself by age 50 and similar number from the wife. Then I’ll seriously consider whether to keep working (I love my job but that’s when the math shifts)

[Anonymous]

Anonymous wrote:Let me start a meaningless troll thread about my net worth also. Incoming in 5 min.

🤣

[Anonymous]

Anonymous wrote:

Anonymous wrote:Curious, OP and others who post about your net worth, is it your collective household net worth or your individual net worth? Maybe I'm insecure in my marriage, but I only calculate my net worth based on accounts I control and ignore home equity. If we could get divorced someday, or DH could die and leave a meaningful portion of "his" estate to people other than me, then it was never really mine to begin with. I don't know. DH has more money than I do, so I feel pretty safe that what's mine is mine, but I don't count what I don't control.

Textbook definition of Net Worth includes primary residence but a lot of people exclude it for retirement income/cashflow planning given that for all practical purposes it can't be accessed as easily as financial assets, and you'll always need a roof over your head. If you are low net worth (say under $3M) it might make sense to include it to make one feel good. Once you get past $5M-$6M it doesn't matter and it just becomes an academic exercise. Obviously a primary residence IS an asset and should be part of legal and estate planning discussions.

We live in a modest house (value has always hovered just below the median value for the county we live in), have about 70% equity now, lived in it for over 20 years but have never included it in our financial planning models, not when out ex-PR NW was < $1M, certainly not when it is >$10M, where it sits today. We completely ignore the asset and associated liability in our models and include the monthly mortgage payment as an expense. We do include our one vacation home since the purpose of that purchase was as an investment.

Newsflash, it's "low networth" if you have less than 3 mil, you are practically closer to sitting on the corner begging than you are to ever retiring one day.