Net Worth

[Barrister]

There is an apples and oranges aspect.  Most gringos are going to have 401ks which look a lot like net worth and many if not most yuros are going to have defined benefit pensions that don't get counted.

Why shouldn't defined benefit pensions get counted? The value of those is not trivial to calculate, but nor is it insurmountable. If the enlightened balls of light are ignoring the value of them, then, sure, that'd be silly. Just as silly as an American not taking away the value of whatever home/student/medical loans they have.

I guess he's differentiating between a state pension and a private pension.

I know my defined benefits pension certainly has an assessed value if you ask for it.  You could even cash it out if you're foolish enough to do so.

If you wanted to look at liquid assets it's minimal, but total net worth including house and pension, minus debts and mortgage, is easily over $100k US.

[Admiral Yi]

I guess he's differentiating between a state pension and a private pension.

I'm differentiating between defined payment and defined benefit.

I just think that most people lump defined payment into net worth because the current cash value is sitting there on your statement, and most most don't with defined benefit because the cash value is not readily available.

I'm curious how academics and reporters and government agencies treat these two.

Anyone know?

[OttoVonBismarck]

Defined-payment, national pension schemes aren't usually included in normal net worth calculations that I've seen, in finance or economics etc, academic or otherwise.

401ks are almost always included in net worth calculations.

Defined-benefit private pensions I'm honestly less sure on, they almost always have a cash value so it wouldn't be hard to include them. Government pension schemes are harder because they are frequently changed by laws and often have no defined cash value (some State-level pensions in the U.S. do though, and even have cash out options.)

[Josquius]

I don't think so.
But with pensions et al who knows.

[DGuller]

If you were to put a number on the lump sum worth of your SS benefits, how would you do it?  I know it's an annuity of some kind, but what parameters do you use? 

[Sheilbh]

With pension savings I have a net worth. Without I am getting out of some loans, overdrafts, credit cards etc

[Grey Fox]

No, my mortgage is still too high.

[Monoriu]

I voted on the basis of not counting my pension. 

[Camerus]

I voted on the basis of not counting my pension.

[Razgovory]

I'm worth maybe a grand.

[mongers]

This isn't a consideration of mine, but the limited number of healthy/active years I have left is very important to me , but it's probably quite small number.

[Valmy]

I think so...but the reality of that would not be known until I actually sell my assets. Schrodinger's net worth I guess.

Theoretically yes.

[crazy canuck]

I think so...but the reality of that would not be known until I actually sell my assets. Schrodinger's net worth I guess.

Theoretically yes.

cash on hand is not net worth

[Valmy]

Damnit CC, I am an Engineer not an Accountant

[saskganesh]

Never will be.