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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Puzzling that people think only assets that throw off income can be included in one's net worth.

What about gold bars, high value artwork, etc.?[/quote]

When people ask about our NW, we only include our non-earmarked liquid assets. This is the truly meaningful amount and omits anything that provides utility or is set aside for a future expense: functional NW as opposed to technical NW.

In this functional NW number, we exclude our home, cars, personal property, 529 plans, retirement accounts, and HSAs. In our experience, the more affluent people all do the same thing. It is the upper middle class and below that tends to inflate their NW estimates using any means available to keep up with the Joneses.

We’re in our early 40s and have a functional NW – by our practical definition – of about $10M. If we include ALL ASSETS and ALL LIABILITIES, our technical NW is closer to $300M. [/quote]

$10 vs $300 is a big difference!! For comparison my #s would be around $14 vs $18 M. Is your house worth $200 M? [/quote]

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