Reply to How do you value a pension in your net worth?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]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. [/quote]
Non liquid assets are assets too and should be part of your net worth. They're just not transferrable. But they're assets nonetheless.[/quote]

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. [/quote]
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.[/quote]

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. [/quote]

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.  [/quote]

How is FERS liquid? It can't be immediately converted to cash.[/quote]

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