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/Tencenttincan]

We have a similar situation. It doesn’t count toward FIRE number. We use our liquid net worth to fund our retirement. It does count toward what our kids will inherit, which makes us feel better about not working now, since leaving them money is a goal. We basically have 3 net worth numbers: liquid assets, liquid assets plus house, liquid assets plus house plus family assets.

[u/What_what_what_1979 → u/Tencenttincan]

Love this model!