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Rising Star
So where should I invest?
Is google at a good price to buy right now?
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Pro
why is MARA down ?
Bowl Leader
Community Builder
What are the exit opportunities out of CMAAS?
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Major stocks to start investing in right now
Conversation Starter
Conversation Starter
Has anybody transferred 401k to RRSP?
Rising Star
Add Charizard Pokémon cards to the list
I personally also include my collection of Princess Di Beanie Babies
I’d say technically yes but difficult to determine FMV and would expect the value to go down as you use certain items.
Thx
Should be especially if it’s an appreciating asset I’d say so, like a stainless Daytona or a GT3 RS.
I don’t count personal property at all. If I had big ticket art or other collectibles with an active market that would allow for liquidation at a predictable amount, I might. But my wife is planning on dying with her engagement ring, we will drive our cars for years more, etc.
Seems silly to count everything, but I guess it depends on what your net worth calculation is going to be used for.
Personally, I measure it to see how far along I am in my retirement plan, so I count things that will be relevant to my retirement decision: retirement accounts, other equities, notes receivable, cash, home equity.
But even that’s misleading - maybe 10% of my retirement account balances are post-tax/Roth while the other 90% are conventional. I count all of those dollars as equal. If you’re getting granular enough to count luxury consumer items, do you also want to account for the cost of liquidating those tax favored accounts (even if you don’t consider the penalty, just the team)?
Seems rough numbers should work for most purposes.
Thx
Rising Star
What about one’s educational and professional degrees.. an MBA should add NW right 🤔
Well, in community property states, degrees can be counted in assets to be divided in a divorce based on earnings potential.
Pro
Sure, but...only if they’re appreciating. They’re not considered investments (no - a diamond depreciates or has no real value and is not an investment), and if you’re looking to include lux goods to up your net worth substantially you may want to think about your investment strategy differently.
Pro
I avoid including anything with a significantly lower future value. Like, I’d I paid $30k for my car and know that I’m 8yrs the most I’ll get for it is $3k, the PV of that is almost nothing.
Yes
https://www.google.com/amp/s/www.businessinsider.com/billionaires-personal-collections-jeff-bezos-kylie-jenner-bernard-arnault-2019-7%3famp
I would include high end items that retain or increase in value.
Pro
For me, I think that adding those to your NW skews what I would be trying to accomplish. Buying a $2k bag is not nearly as productive as adding $2k of stocks to my 401k, but including both in NW gives the illusion that they are comparable in the short term. Does that mean you can’t buy the bag? No that’s a personal/budgetary decision - just don’t rationalize it as an investment
Imo personal prop value is really for insurance coverage purposes, not a NW item at all.
Not sure if helpful or not - hopefully it is!
Thx
I bought my PS5 at MSRP. Pretty sure I can sell that for a gain for at least the next year!
I bought an iPad Pro 2018 LTE version on sale for $700ish. I'm certain that I could sell that nearly recoup the entire cost or even for a gain potentially.
Then there are other personal items I own which would would add up the at least $6,000 I'm assuming. I don't bother including them in my net worth calcs, but it's definitely still a sensible thing to do.
I've been able to resell electronics that I've upgrade from for cash to help pay for the new one all the time... Easy way to save more money and invest.
Rising Star
Can you use it as collateral and borrow against it (not from a pawn shop)? If so, I guess it can be added to the NW.