Anonymous wrote:Probably not. However, if you include home equity, which I assume you are some are probably close to it.

Why…wouldn’t you include home equity?

I am a single mom who has lived a frugal life. I am early 40's with a net worth of a million (not including a pension). I always assume people on DCUM have way more then me.

Anonymous wrote:How do you factor in pensions?

This has come up a number of times here. Finance professionals debate it, and my read is the edge is given to not counting it in.

My view is that pension matters for net worth if your horizon is your lifetime and what you will have in retirement. If you view your net worth more in terms of what you might leave in your estate, pension is irrelevant except to the extent that you don't need to use your other assets to live on because of your pension, you will have more of the other assets for your estate..

A shortcut way of including pension in your net worth is dividing your yearly pension by 0.04. So $100,000 a year in pension would be the equivalent of $2.5 million.

How do you factor in pensions?

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Not me. NW $270k at 32yo. Came from LMC family though and had zero help with anything (college, down payment, etc). How bad am I doing?

You're doing fine. I think I had just gotten back to NW of $0 at that age after paying off student loans. Now 40, combined NW ~$2M (married with one kid). Good habits are more important than raw numbers early in your career.

How did you earn $2mm in 8 years? What’s your HHi?

It was between $400-650k for the last 4 years, plus we had fortuitously-timed real estate purchases/sales. Now I'm part time so HHI has dropped to $350 but saving and investing aggressively in our thirties gave us a great base.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Most of it comes from their home.

If you were to take the home out of their 'net worth', most of the posters are not really millionaires.

But it is part of their net worth. If you took away Jeff Bezos' Amazon stock, he would not be a centibillionaire.

Stocks are more liquid than someone’s home residence.
Stocks > home.

You’re not very bright.

DUH

However, that does not change the definition of net worth, which definitely includes your home(s).

I currently own 4 homes (no mortgages, Approx $8M in value) and definately include those in my net worth.

Why are you including anything in your net wealth? I never even attempted to calculate mine until this thread. Who is asking you for this? A dating app?

DP, but at the moment the OP of the thread is asking. More generally, it's prudent to have an understanding of your financial picture, which includes net worth.

I'm not sure it really matters what my net worth is. I'm confident we're saving enough for college for our kids and for retirement for ourselves, but beyond that, who cares?

Lol, who cares about understanding their financial condition?? Is that your question? Net worth is a fundamental metric that everyone should understand, and it takes about 30 seconds to calculate. Are you OK when you kid says, "I'm not failing any classes - who cares what grades I get beyond that?!"

Anonymous wrote:

Anonymous wrote:Not me. NW $270k at 32yo. Came from LMC family though and had zero help with anything (college, down payment, etc). How bad am I doing?

You're doing fine. I think I had just gotten back to NW of $0 at that age after paying off student loans. Now 40, combined NW ~$2M (married with one kid). Good habits are more important than raw numbers early in your career.

How did you earn $2mm in 8 years? What’s your HHi?

Anonymous wrote:Not me. NW $270k at 32yo. Came from LMC family though and had zero help with anything (college, down payment, etc). How bad am I doing?

You're doing fine. I think I had just gotten back to NW of $0 at that age after paying off student loans. Now 40, combined NW ~$2M (married with one kid). Good habits are more important than raw numbers early in your career.

It always baffles me that people assume only rich people post here.

Not me. NW $270k at 32yo. Came from LMC family though and had zero help with anything (college, down payment, etc). How bad am I doing?

Anonymous wrote:

Anonymous wrote:We have over 1 million in our combined retirement accounts. We are in our early forties. Then another 500k or so in home equity. We are definitely not wealthy compared to people in our friend group or neighborhood though so I would say that most people in this area have a minimum of 1mil - especially with 2 working adults. We are a single earner family of 3

This makes me wonder whether the original question is for one person or two. We’re in a similar condition but two earners in early fifties, with a bit over $1M in retirement and a bit under $500K in home equity. Totally illiquid. Not sure if this counts as over $1M aggregate vs. under $1M individually but regardless, we’re the DCUM poor.

A lot of people have zero or negative net worth.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Most of it comes from their home.

If you were to take the home out of their 'net worth', most of the posters are not really millionaires.

But it is part of their net worth. If you took away Jeff Bezos' Amazon stock, he would not be a centibillionaire.

Stocks are more liquid than someone’s home residence.
Stocks > home.

You’re not very bright.

np. It has nothing to do with liquidity. It's about the fact that an owner-occupied residence is not earning you any money.

I own $3M in stocks and our primary house outright. But I'd rather have $6M in rental properties than $3M in stocks.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Most of it comes from their home.

If you were to take the home out of their 'net worth', most of the posters are not really millionaires.

But it is part of their net worth. If you took away Jeff Bezos' Amazon stock, he would not be a centibillionaire.

Stocks are more liquid than someone’s home residence.
Stocks > home.

You’re not very bright.

DUH

However, that does not change the definition of net worth, which definitely includes your home(s).

I currently own 4 homes (no mortgages, Approx $8M in value) and definately include those in my net worth.

Why are you including anything in your net wealth? I never even attempted to calculate mine until this thread. Who is asking you for this? A dating app?

DP, but at the moment the OP of the thread is asking. More generally, it's prudent to have an understanding of your financial picture, which includes net worth.

I'm not sure it really matters what my net worth is. I'm confident we're saving enough for college for our kids and for retirement for ourselves, but beyond that, who cares?

Some do.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Most of it comes from their home.

If you were to take the home out of their 'net worth', most of the posters are not really millionaires.

But it is part of their net worth. If you took away Jeff Bezos' Amazon stock, he would not be a centibillionaire.

Stocks are more liquid than someone’s home residence.
Stocks > home.

You’re not very bright.

DUH

However, that does not change the definition of net worth, which definitely includes your home(s).

I currently own 4 homes (no mortgages, Approx $8M in value) and definately include those in my net worth.

Why are you including anything in your net wealth? I never even attempted to calculate mine until this thread. Who is asking you for this? A dating app?

DP, but at the moment the OP of the thread is asking. More generally, it's prudent to have an understanding of your financial picture, which includes net worth.

I'm not sure it really matters what my net worth is. I'm confident we're saving enough for college for our kids and for retirement for ourselves, but beyond that, who cares?

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Most of it comes from their home.

If you were to take the home out of their 'net worth', most of the posters are not really millionaires.

But it is part of their net worth. If you took away Jeff Bezos' Amazon stock, he would not be a centibillionaire.

Stocks are more liquid than someone’s home residence.
Stocks > home.

You’re not very bright.

DUH

However, that does not change the definition of net worth, which definitely includes your home(s).

I currently own 4 homes (no mortgages, Approx $8M in value) and definately include those in my net worth.

Why are you including anything in your net wealth? I never even attempted to calculate mine until this thread. Who is asking you for this? A dating app?

DP, but at the moment the OP of the thread is asking. More generally, it's prudent to have an understanding of your financial picture, which includes net worth.