Reply to High NW People - tell me about your retirement

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]I need more details about how you’re calculating networth. For example, our home  would sell for $2.2-2.3 and we owe less than $500k. So, for the sake of argument we have $1.8 in it.

3.5 million in retirement accounts + $30k in art/jewlery.

What else should we be including in networth? Cars? We have no debt, colleges are paid for. Is our networth approx $5 million? How do you have double that making $275k???[/quote]

Anyone who needs to ask themselves how to calculate net worth, and is nickel and diming their material goods, does NOT have a high net worth. The point of calculating net worth is to assess how much you could liquidate for if need be. There are various ways to calculate NW, with or without one's primary residence and with and without one's valuables, but the fact of the matter is, you need a roof over your head, and your collectibles probably won't sell for that much, given commission and fees you will probably need to pay to unload them. My family has a lot of antiques and collectibles - it hardly ever sells for what you think it will. You could say you have around 4M in net worth.

I am not OP, but I have 10M+, solely because I made interesting choices decades ago in the stock market. I invested very little, but since most of it was in high tech, it worked out great. No inheritance, no high income. It happens.

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Net worth is a defined term and that term does include jewelry, home equity, etc. What I use for retirement planning is liquid assets and use use the 4% rule to to see if it covers my (desired) cost of living, after accounting for other sources of income, such as pensions or investment property income. [/quote]

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