Definition of net worth

[Anonymous]

This is assets minus liabilities.

Here are some common problems:
1. Some may exclude their current home or their pension. Note that military people have big pensions that they may not be counting. (They have valuable health benefits too)
2. Some max exclude college savings since they think that belongs to the children.
3. Some may exclude household stuff and other misc. things. ie. jewelry, furniture, cars, sports & hobby gear, etc. etc.
4. Note that after paying taxes on retirement withdrawals and capital gains from appreciating stock (like Apple for example), your after tax net worth could be much less. You may also have to pay taxes on your real estate too.

Any other comments about net worth? Were you under or over estimating?