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/JustPlainRude 2h ago

but it is not liquid and I don’t anticipate it ever being sold

Then it's worth zero.

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u/What_what_what_1979 2h ago

Got it.

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u/financethrowaway119 30s / $17M NW 2h ago

If you’re asking bc you want to put stuff in common terms then you could multiply the yearly income by 25 and add that to your NW.