+1I get that they're different, I'm just trying to understand what the criteria is for being included in Net Worth. There are several ways to calculate the value a pension, or any other guaranteed stream of income. We're discussing whether pensions should be included in Net Worth calculations. Comparing them to other assets that we include or exclude from Net Worth gives a good idea of if we are being consistent and coherent in our decision making process.There are many ways to calculate the value of a business -- often called the "book value." Sometimes there are other considerations in pricing a business for sale, like brand recognition, customer goodwill, management skill and reputation, value of patents, etc.. None of those things include a pension which is the subject of this conversation.That's interesting. So you only include assets that are liquid or have a high level of certainty. I'm part owner (a small percent) in a business of 10 restaurants and a brewery. I have no control over the investment and disbursements are random and completely uncertain. Under your method should I include this in my NW? If so how, and if not where should I record this in my financial assessment, if at all?No.
So you wouldn't include these as assets in your NW calculations?
Statistics: Posted by Back Dr — Sun Jul 14, 2024 10:30 am — Replies 246 — Views 29681
