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personally i think it should not include either . they are cash flow not net worth . i mean why not count a future of income from your job for that matter .
personally i think it should not include either . they are cash flow not net worth . i mean why not count a future of income from your job for that matter .
Net worth is one rough measure of economic well-being. If Person A and Person B both have net worths of, say, $100K, are both retired, do they have roughly comparable economic well-being?
How about if Person A has no pension whereas Person B has a public sector pension paying him $250K/year with public-sector gold plated full health care benefits with zero deductibles? Do they then have roughly comparable economic well-being?
IMHO net worth calculations are best done after-tax. For example, let's say Person A and Person B both have net worths of, say, $100K. Let's say Person A's net worth is 100% in AAPL stock with a basis of $0.01, whereas Person B's net worth is also 100% in AAPL stock but with a basis of $170.00. Do they have roughly comparable economic well-being?
In my own percentile zone. I don't need to put myself in a category others set in the first place.
Just do what you have to do in life and move on with your life.
We all die in the end. So, let say you are the richest guy in the world, number 1, and you have more than what you can spend, so what, when you die, you are not going to take those assets with you to your grave.
I think the whole you can't take it with you attitude is a bad one. I get the sentiment don't worry your whole life working and being cheap and not enjoy it but at the same time to me the point is to setup the next generation for a nice life.
In my own percentile zone. I don't need to put myself in a category others set in the first place.
Just do what you have to do in life and move on with your life.
We all die in the end. So, let say you are the richest guy in the world, number 1, and you have more than what you can spend, so what, when you die, you are not going to take those assets with you to your grave.
personally i think it should not include either . they are cash flow not net worth . i mean why not count a future of income from your job for that matter .
I wasn't expressing an opinion one way or the other, just noting that the referenced calculator was using net worth including pensions and possibly SS at net present value. You are probably a one percenter using their method. Congratulations.
Net worth is one rough measure of economic well-being. If Person A and Person B both have net worths of, say, $100K, are both retired, do they have roughly comparable economic well-being?
How about if Person A has no pension whereas Person B has a public sector pension paying him $250K/year with public-sector gold plated full health care benefits with zero deductibles? Do they then have roughly comparable economic well-being?
IMHO net worth calculations are best done after-tax. For example, let's say Person A and Person B both have net worths of, say, $100K. Let's say Person A's net worth is 100% in AAPL stock with a basis of $0.01, whereas Person B's net worth is also 100% in AAPL stock but with a basis of $170.00. Do they have roughly comparable economic well-being?
but it is not about overall economic well being , it is about "net worth "
otherwise lets all count future income from our jobs if you want to include income and not net worth . .
it is cash flow , which is like income from a pension or even your job . it is not net worth anymore than my next 8 weeks salary is at this moment in time , assuming i had a job lol .. .
an spia is buying a pension , it really does not get treated the same as assets . you can die tomorrow and get nothing from a pension or annuity .
at best i would count any surrender value or cash value , but an spia dies when you and your spouse does .
that is why these kinds of questions which single out net worth a part from income flow mean little . i can have an annuity that pays 40k a year and as long as i get it , it spins off what a million dollars does but they are not the same thing . because when you die the million dollars is no longer there .
it gets complicated trying to figure in insurance products and i see no reason to even want to for something as silly as this poll .
Last edited by mathjak107; 01-27-2018 at 11:58 AM..
but reality is just about all of us get hit with the big 3 - DIVORCE-ILLNESS -JOB LOSS at some point and usually it is later in life . i was divorced at 51 .
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