Reply to Do you include your home equity in net worth ?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Most billionaires have an illiquid net worth. Sure they might have a couple hundred mil in cash and USTs, but homes, boats, art, jewelry, and even their stock can be illiquid (you don't want to sell too much at once of a single company lest you tank the market value).

So yeah, it's assets minus liabilities. And that includes your residences, since you put up some equity capital for a down payment.

For most of us, our net worth is illiquid if its mostly tied up in real estate and retirement accounts. [/quote]

And most non-billionaires have Real Estate investments (e.g. rentals) that are perfectly fine being included in one's net worth. The topic is about home equity, as in the equity you have in your primary residence. I don't count it. If you do, great! If you don't, great! If you include a percentage of it, great! You do you..[/quote]

You can have home equity in second and third homes too. Home equity is not just for your primary home. I include it in my analysis, but that doesn't mean you have to. Other than our financial advisor no one sees our net worth summary - it is only for my purposes so I do what works for me, which is assets minus liabilities.[/quote]

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