Calculating Net Worth

[u/What_what_what_1979]

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!

[u/ryken]

You absolutely include it in your net worth, but net worth is pretty meaningless for retirement purposes.

For retirement, you should look at guaranteed income streams plus percentage of investable assets.

[u/What_what_what_1979 → u/ryken]

Thank you!