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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]DCUM: always giving me something to strive for.

Just curious, how do you calculate your net worth? [/quote]

Simple: all assets minus liabilities. [/quote]

Except you always get jealous people who insist that you have to count your 401k only AFTER taxes, which is silly. [/quote]

Why is that silly or why would that imply jealously?  It’s clearly in the definition of net worth – assets minus liabilities. Traditional 401(k)s allow you to *defer* your tax liability, not eliminate it.  Otherwise, $1 million in a Roth account would be no more valuable than $1 million in a traditional 401(k).

Now, if you want to talk about silly, look at the idiots who don’t consider home equity an asset in net worth calculation because “yOu alWaYS hAvE tO lIVe sOmEwHEre!”  Apparently, they don’t understand the concept of imputed rent and that if someone did not have a paid-off house, they would need significantly more investments to be able to cover monthly rent payments.[/quote]

Your position is that when calculating your net worth, you have to factor in all taxes required to access the money?  So in addition to income taxes for 401ks, you facot in capital gains taxes for taxable accounts?  And also taxes and fees on the sale of a home, including realtor fees, recording taxes, etc.?

That makes a certain amount of sense, but no one does that.

And finally - who cares?  Calculating your net worth is meaningless.  It's not used for anything.  It's just an ego-driven exercise.  You may as well engage in a d**K measuring contest - although in your case, I'm guessing we know why you wouldn't welcome those kind of comparisons.  [/quote]

If you calculate net worth as a proxy for the size of your estate, it is not meaningless. It's important for estate planning, especially if you are in a state with an inheritance tax.[/quote]

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