How do you value a pension in your net worth?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Here you go. But it assumes you die at 85 years old

https://valueyourpension.com/

Note: this is a pay service, which you only find out after you have provided a fair amount of information.

What are you talking about? You only have to enter your DOB.

https://valueyourpension.com/life-expectancy-present-value-calculator/

[Anonymous]

Anonymous wrote:

Anonymous wrote:There's no reason to add your pension or expected social security to your net worth. Just deduct them from the income you calculate you need in retirement. They're not liquid assets.

Non liquid assets are assets too and should be part of your net worth. They're just not transferrable. But they're assets nonetheless.

But it's useless for net worth. This has been discussed quite a bit on bogleheads and that seems to be the best take over there.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Here you go. But it assumes you die at 85 years old

https://valueyourpension.com/

Note: this is a pay service, which you only find out after you have provided a fair amount of information.

What are you talking about? You only have to enter your DOB.

https://valueyourpension.com/life-expectancy-present-value-calculator/

Interesting it says my pension value is 1.5 mil

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:There's no reason to add your pension or expected social security to your net worth. Just deduct them from the income you calculate you need in retirement. They're not liquid assets.

Non liquid assets are assets too and should be part of your net worth. They're just not transferrable. But they're assets nonetheless.

But it's useless for net worth. This has been discussed quite a bit on bogleheads and that seems to be the best take over there.

They produce income for you just like other assets (think investment properties). So they’re assets. DCUM isn’t very financially literate to be the golden standard.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:There's no reason to add your pension or expected social security to your net worth. Just deduct them from the income you calculate you need in retirement. They're not liquid assets.

Non liquid assets are assets too and should be part of your net worth. They're just not transferrable. But they're assets nonetheless.

But it's useless for net worth. This has been discussed quite a bit on bogleheads and that seems to be the best take over there.

They produce income for you just like other assets (think investment properties). So they’re assets. DCUM isn’t very financially literate to be the golden standard.

Pensions are not liquid, so there's no point in calculating a present value. You can't sell them. You can sell an investment property. See the difference? The only reason to calculate a present value is to pat yourself on the back.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:There's no reason to add your pension or expected social security to your net worth. Just deduct them from the income you calculate you need in retirement. They're not liquid assets.

Non liquid assets are assets too and should be part of your net worth. They're just not transferrable. But they're assets nonetheless.

But it's useless for net worth. This has been discussed quite a bit on bogleheads and that seems to be the best take over there.

They produce income for you just like other assets (think investment properties). So they’re assets. DCUM isn’t very financially literate to be the golden standard.

Pensions are not liquid, so there's no point in calculating a present value. You can't sell them. You can sell an investment property. See the difference? The only reason to calculate a present value is to pat yourself on the back.

This is funny. A lot of things are illiquid and they have value.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:There's no reason to add your pension or expected social security to your net worth. Just deduct them from the income you calculate you need in retirement. They're not liquid assets.

Non liquid assets are assets too and should be part of your net worth. They're just not transferrable. But they're assets nonetheless.

But it's useless for net worth. This has been discussed quite a bit on bogleheads and that seems to be the best take over there.

They produce income for you just like other assets (think investment properties). So they’re assets. DCUM isn’t very financially literate to be the golden standard.

Pensions are not liquid, so there's no point in calculating a present value. You can't sell them. You can sell an investment property. See the difference? The only reason to calculate a present value is to pat yourself on the back.

If something can generate income, it has a present value. The purpose of knowing the present value of it is the same as why you need to know the PV of something "liquid" (BTW, I don't think you really understand what liquid means): you can use it to buy something.

[Anonymous]

Calculating the present value of a pension is helpful if you’re considering switching from, say, a gov job with pension to private sector. Even if the private sector salary is higher, you need to factor in the value of the pension and other gov benefits as well.

[Anonymous]

From another thread..


https://www.journalofaccountancy.com/issues/2...stand-net-worth.html

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:There's no reason to add your pension or expected social security to your net worth. Just deduct them from the income you calculate you need in retirement. They're not liquid assets.

Non liquid assets are assets too and should be part of your net worth. They're just not transferrable. But they're assets nonetheless.

But it's useless for net worth. This has been discussed quite a bit on bogleheads and that seems to be the best take over there.

They produce income for you just like other assets (think investment properties). So they’re assets. DCUM isn’t very financially literate to be the golden standard.

Pensions are not liquid, so there's no point in calculating a present value. You can't sell them. You can sell an investment property. See the difference? The only reason to calculate a present value is to pat yourself on the back.

Fers is one of the most liquid instruments. The probability of the current fers beneficiaries of not getting the payout is close to zero. Not only that, it is also adjusted for inflation. It is the ultimate risk free asset.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:There's no reason to add your pension or expected social security to your net worth. Just deduct them from the income you calculate you need in retirement. They're not liquid assets.

Non liquid assets are assets too and should be part of your net worth. They're just not transferrable. But they're assets nonetheless.

But it's useless for net worth. This has been discussed quite a bit on bogleheads and that seems to be the best take over there.

They produce income for you just like other assets (think investment properties). So they’re assets. DCUM isn’t very financially literate to be the golden standard.

Pensions are not liquid, so there's no point in calculating a present value. You can't sell them. You can sell an investment property. See the difference? The only reason to calculate a present value is to pat yourself on the back.

Fers is one of the most liquid instruments. The probability of the current fers beneficiaries of not getting the payout is close to zero. Not only that, it is also adjusted for inflation. It is the ultimate risk free asset.

also, $ until your spouse dies even if you check out first

[Anonymous]

A pension isn't part of net worth. Net worth is part of your "pension" (retirement plan)

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:There's no reason to add your pension or expected social security to your net worth. Just deduct them from the income you calculate you need in retirement. They're not liquid assets.

Non liquid assets are assets too and should be part of your net worth. They're just not transferrable. But they're assets nonetheless.

But it's useless for net worth. This has been discussed quite a bit on bogleheads and that seems to be the best take over there.

They produce income for you just like other assets (think investment properties). So they’re assets. DCUM isn’t very financially literate to be the golden standard.

Pensions are not liquid, so there's no point in calculating a present value. You can't sell them. You can sell an investment property. See the difference? The only reason to calculate a present value is to pat yourself on the back.

Fers is one of the most liquid instruments. The probability of the current fers beneficiaries of not getting the payout is close to zero. Not only that, it is also adjusted for inflation. It is the ultimate risk free asset.

How is FERS liquid? It can't be immediately converted to cash.

[Anonymous]

Anonymous wrote:A pension isn't part of net worth. Net worth is part of your "pension" (retirement plan)

Wrong