jake2011 said:

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62strat said:

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jake2011 said:

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If you want a true net worth calculation exclude the equity in your primary residence. You have to live somewhere and it won't help you retire. Bet there isn't nearly as many over $1MM doing it that way.

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Silly. Of course your house is included. Yes you have to live somewhere, but if right now my house is worth 400k and I owe 300k and in 10 years it's worth 600k and I owe 150k, I have absolutely increased my net worth.

And it doesnt you retire? Also silly. What if when you retire you own a 700k house fee and clear, and decide to sell it and buy an rv and travel US for 5 years, then buy an inexpensive condo with cash left over?

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If your house has increased in value so have others which you will buy once you sell yours so not much net change. The only time your home equity really comes into play is if you materially downsize, move somewhere far less expensive or decide to get an RV or lease in a less expensive location. The vast majority don't do those things.

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I'm not sure I know anyone that hasn't downsized in their 60s or 70s. Unless you have a 3/2 single story or die early, you're probably going to downsize.

Additionally, having a paid off house equals thousands saved per month.

jake2011 said:

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62strat said:

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jake2011 said:

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If you want a true net worth calculation exclude the equity in your primary residence. You have to live somewhere and it won't help you retire. Bet there isn't nearly as many over $1MM doing it that way.

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Silly. Of course your house is included. Yes you have to live somewhere, but if right now my house is worth 400k and I owe 300k and in 10 years it's worth 600k and I owe 150k, I have absolutely increased my net worth.

And it doesnt you retire? Also silly. What if when you retire you own a 700k house fee and clear, and decide to sell it and buy an rv and travel US for 5 years, then buy an inexpensive condo with cash left over?

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If your house has increased in value so have others which you will buy once you sell yours so not much net change. The only time your home equity really comes into play is if you materially downsize, move somewhere far less expensive or decide to get an RV or lease in a less expensive location. The vast majority don't do those things.

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you specifically said it won't help you retire... nearly everyone downsized when or shortly after they retire.

If I decided to move back to Texas today, I could almost buy what we would want cash, based on the appreciation of our home in Denver area in 4 years. We'd clear almost 200k, and could like buy in 200k range. So how is that not part of my worth?

But, I plan to stay in my home until my kids are out of college. I'll own it, eventually sell it, and will have lots left over after buying something else smaller.

Admit it, your statement is silly. There is no reason to not include equity in net worth calculation. It is real and eventually will come into play. Even if you sell after appreciation and have to buy in same market or upsize, eventually you will downsize and, unless you played the real estate game really poorly, you'll have great equity and therefore financial worth.

jake2011 said:

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If you want a true net worth calculation exclude the equity in your primary residence. You have to live somewhere and it won't help you retire. Bet there isn't nearly as many over $1MM doing it that way.

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Yeah, this is preposterous. If you own a 20 million dollar chateau in France, it is not reasonable to assert that you are not worth 15 million+ because you "have to live somewhere".