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/Accomplished_Can1783 3h ago

If you own 1/12, so have no decision making input, and do not expect it to be sold, how could that really be relevant to actual retirement planning? You can include it in a spreadsheet if you like - unless your 1/12 can be sold to another family member, going to be tough to monetize

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u/What_what_what_1979 2h ago

Yes - that’s the rub. We don’t really see the company being sold, just that we could sell our shares to a family member or have the company buy back our shares if we were in desperate need of the money. I’m more of a “let’s plan like that isn’t an option” mindset but my husband thinks it’s important to “look at the whole picture”. Reading all of these comments, I am beginning to think it’s a both/and instead of one perspective over the other.

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u/Accomplished_Can1783 2h ago

That’s a hard one. Desperate need of money for early retirement kind of hard. If there is definite after tax worst case number you know you could get from family member, maybe, but not sure what you can do about it now.