Stupid question re: net worth

[kdibattista]

Would retirement accounts (specifically 401b) contribute towards your "net worth"? I am assuming that life insurance does not? Is there someplace that I can find out what else would count?

Thanks... as always

 

[Charade]

Would retirement accounts (specifically 401b) contribute towards your "net worth"? I am assuming that life insurance does not? Is there someplace that I can find out what else would count?

Thanks... as always

Retirement accounts, yes. Life insurance, not sure.

 

[Bob Slydell]

Yes, retirement assets (401K, 403B, etc) do count, at their current market value. Only the cash value of life insurance policies (e.g. whole life policies, not term life) counts as assets.

Here's a worksheet I found: http://www.rce.rutgers.edu/money/pdfs/networthcalcworksheet.pdf

 

[kdibattista]

Great... thanks guys

 

[mickeyboat]

I think it would depend on who is asking what your "net worth" is I bet whoever it is has a specific definition of net worth, and what it includes. If not, then I would go with what BobSlydell said.

Denae

 

[kdibattista]

It's for our adoption

 

[EthansMom]

The value of all accounts (retirement, savings, etc..), the value of your house, and the value of your cars (what you could sell them for) can all be listed under "assets" when determining net worth. Then subtract off all debts.

Term life insurance doesn't count, but a cash value of a whole/universal life insurance policy does.

So, short answer, yes a 401b does count in your net worth.

 

[EthansMom]

It's for our adoption

Wow! Good Luck!

 

[mickeyboat]

It's for our adoption

woo hoo! (I wasn't trying to be nosey, I just know that some forms have specific definitions for certain terms).

Denae