Reply to What's your net worth?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I don’t understand including your home in your net worth.  We certainly don’t as we don’t ever plan on living in the streets.[/quote]

It's included because it's a real asset that can be liquidated if needed/desired.  As any financial planner would tell you, you don't include the equity in your home as an income stream in retirement if you plan on living in it forever -- but it's certainly an asset regardless.  When you croak, the house goes to your heirs.  It doesn't simply disappear.

And many people don't plan on living in their current home forever.  It's not "live here or on the street."

The inability of so many posters on DCUM to grasp the basic concept of net worth is astounding.  I thought this was a website with largely educated and savvy participants.  Sometimes I wonder. [/quote]

When to include your house in your NW is debated on many forums, and there are reasonable arguments on both sides—no need for either of you to get so worked up. I have a spreadsheet with multiple columns to see everything together (including 529 plans and home equity), or isolate investable assets like brokerage, retirement accounts, commercial real estate, private equity, etc. [/quote]

The official definition of NW is "assets minus liabilities". so yes, your home is included, minus the mortgage/liabiltiies

And most of us understand that yes you need to sell to access it.  [/quote]

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