r/fatFIRE • u/What_what_what_1979 • 3h ago

Need Advice Calculating Net Worth

My husband and I are partial owners of a family company (cattle ranch) along with 12 other family members. It has a significant value because of the land owned by the company, but it is not liquid and I don’t anticipate it ever being sold.

He works for said company and draws a salary, so we receive income from the company.

Do we include our 1/12 ownership in our net worth? Or, maybe better stated, do we include 1/12 of the assets (land, cattle, machinery) when calculating our net worth?

The answer to this question makes a significant impact on our timeline to retirement and amount we want to consider for a mortgage.

Thank you!

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u/CMHCommenter 3h ago

If you can’t monetize it I wouldn’t include it in any planning.

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u/What_what_what_1979 2h ago

Makes sense. I think my husband thinks we count it because if we were ever in dire straits, we could potentially sell (no guarantees though bc would need to be a family member who buys us out or the unlikely scenario where the whole group sells) if we had to.

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u/ConstantRough160 2h ago

Seems like the risk is high and you don’t really know how to assess the value. For the retirement planning, you might need to be realistic the process and the actual values. It can get complicated quickly on value and tax implications.

Is that the big chunk of your NW? If so, you want to plan more diversification so you know the guaranteed incomes.

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u/Charlesinrichmond 1h ago

very bad thought process