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[quote=Anonymous][quote=Anonymous][quote=Anonymous][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 [b]a functional NW[/b] – by our practical definition – of about $10M. If we include ALL ASSETS and ALL LIABILITIES, our technical NW is closer to $300M. [/quote]

This post is so funny I had to read it to DH . . .  he made me read it to him twice.[/quote]

Why so funny?

For our functional NW, we have $10M in checking, HYSA, taxable brokerage, and other liquid funds.

For our technical NW, we have an extra $290M distributed as follows:
- HSAs: $1M
- 529 Plans: $2M
- Cars: $3M
- Primary Home: $48M
- Home Furnishings and Art: $16M
- Retirement Accounts: $40M
- Term Life Insurance Policies: $50M
- Home and PP Insurance: $70M
- AD&D Insurance: $60M

If we suddenly passed away and had to pass everything on to charity or our kids, we technically have a NW of $300M. This is why we don’t include all these extras in our functional NW. Inflated NW is a silly number that you can only realize when you’re homeless and dead. Oh well, to each their own. [/quote]

Obviously a joke since it’s impossible to have that much in retirement accounts [/quote]

That's what I thought reading it, but they're probably inherited. [/quote]

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