What is Sammy Savers net worth?

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TheTimeLord
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What is Sammy Savers net worth?

Post by TheTimeLord »

What would you consider Sammy Savers net worth be with the following situation. Sammy is 58 years old?

Taxable Accounts - $500,000
Tax Deferred Accounts - $500,000
Eligible Full Benefit Social Security Benefit - $15,000/yr
Pension with a COLA - $10,000/yr
His house is worth $250,000 with no mortgage
He has No Debt
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nordlead
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Re: What is Sammy Savers net worth?

Post by nordlead »

yay, another one of those how do you calculate net worth threads...

Anyways, I do simple math because it is good enough for me.

$1m with a yearly income of $10k (assuming he is eligible for his pension now). At 67 he'll have a yearly income of $25k in today's dollars.
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Re: What is Sammy Savers net worth?

Post by Kenkat »

nordlead wrote:yay, another one of those how do you calculate net worth threads...

Anyways, I do simple math because it is good enough for me.

$1m with a yearly income of $10k (assuming he is eligible for his pension now). At 67 he'll have a yearly income of $25k in today's dollars.
+1

Any income above $25k per year (at full retirement) needs to be generated by the $1mm.
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Re: What is Sammy Savers net worth?

Post by TheTimeLord »

kenschmidt wrote:
nordlead wrote:yay, another one of those how do you calculate net worth threads...

Anyways, I do simple math because it is good enough for me.

$1m with a yearly income of $10k (assuming he is eligible for his pension now). At 67 he'll have a yearly income of $25k in today's dollars.
+1

Any income above $25k per year (at full retirement) needs to be generated by the $1mm.
How does this address the question asked? Do you need additional parameters?
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GoldenFinch
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Re: What is Sammy Savers net worth?

Post by GoldenFinch »

I would consider his net worth to be one million. I don't count the future other stuff.
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Re: What is Sammy Savers net worth?

Post by saladdin »

Zero.

Sammy came home early from golf on Sunday and found wife Sandy in bed with his brother Steve. Sammy was heart broken because he and Sandy had been childhood sweethearts and married after high school. Sammy always looked up to Steve as a kid. You see, Sammy and Steve's dad liked to drink and made his son's watch soccer on tv while drunk and Sammy HATED soccer. Sammy's dad would make him play goal keeper and kick soccer balls at him.

Sandy was a cheerleader, the prettiest one in school. She would cheer so loudly for the Smurfs (their highschool mascot) and all the boys would chase after her. But Sammy is the one she let catch her. He called her his little Smurfette (all you kids ask your parents what Smurfs are). They were a happy couple and spent every minute together. Than the night before high school graduation over a Big Mac, Sammy popped the question. Sandy let out a big YES! and he slipped the dime store ring on her finger. They were married at the court house 3 days later. "I promise one day I''ll give you every nice thing you could want" Sammy told her.

Life went on. Sammy went to work at the local Radio Shack knowing they would be in business forever. He worked his way up the company until finally he owned a string of Radio Shacks. Money was pouring in and thankfully Sammy was a saver. Once his brother Steve tried to talk him into buying stock in Best Buy but Sammy refused saying "Index funds are where the cool kids invest." So he saved and saved so that he and Sandy would have the perfect retirement.

But what Sammy didn't know was that Sandy was lonely. Sammy was working 80 hours a week at The Shack trying to provide but that didn't solve Sandy's loneliness. Sammy sensed something was off and finally asked her "What's the deal?"
Sandy said that since Sammy was working all the time she was getting lonely. "I've binged watched all of Breaking Bad and now I need something to occupy my time." Sammy came up with the perfect solution, " Let's have a kid. That solves everything."

So that's what they did. Little Sissy was born 9 months later happy and healthy. Sammy loved Sissy very much and was a good father. He opened up a 529 and even a ROTH when she went to work at his Radio Shack at age 13. Their relationshp was perfect except for her love of soccer. "It's just a phase" he said to himself, "She'll grow out of it."
But she didn't.

Years passed by and Sissy graduated from highschool and enrolled in state college with a soccer scholarship. After discussing it with her dad Sissy decided getting a degree in Arts was foolish and decided to become an engineer. She zoomed through college, got a great job and moved off to Colorado. Now, the house was empty again. "It's time to enjoy retirement," he told Sandy and he took up golf.

Sammy was returning home after his first golf lesson that Sunday when he pulled into the driveway. He walked up the stairs quietly so he could surprise his wife. As he got closer to the bedroom he could hear the sounds. "It can't be" he thought. He pushed the door open and there they were, Steve and Sandy laying in bed...watching soccer. Tears came to Sammy's eyes as he staggered back downstairs. "I'm sorry Sammy. I know you hate soccer but I...love it."

Sammy couldn't forgive her so he filed for divorce. Since there was no pre-nup Sammy's assets were divided 50/50. Sammy wanted to make up for those losses by trying to make easy money in the stock market so he put all his money into Circuit City stock. He lost everything

So, his networth is now zero.
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Re: What is Sammy Savers net worth?

Post by mptfan »

One million.
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Re: What is Sammy Savers net worth?

Post by TheRightKost87 »

I guess if you're asking for the current value of all the above you'd need to do a DCF analysis on the SS and pension. You'd need to make some assumptions of the inflation rate, and the length of payments (i.e. time until death) and discount those cash flows back to today to give you a PV.

You also have to subtract whatever you anticipate to pay in taxes on the tax deffered accounts. Which may be difficult to predict as you don't know what the tax rates will be when you withdraw, or that you won't have a big withdrawal year that bumps you into a higher bracket than anticpated.

I'd say the net worth is... NW = 500K + 500K(1-T)+PV[SS+Pension payments]
where T is your estimated average tax rate of withdrawals on the tax deffered account.
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Re: What is Sammy Savers net worth?

Post by Bustoff »

I say one million ... but first show me the money. 8-)
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Re: What is Sammy Savers net worth?

Post by GoldenFinch »

saladdin wrote:Zero.


Sammy couldn't forgive her so he filed for divorce. Since there was no pre-nup Sammy's assets were divided 50/50. Sammy wanted to make up for those losses by trying to make easy money in the stock market so he put all his money into Circuit City stock. He lost everything

So, his networth is now zero.
HaHaHa! I was just trying to get to work and leave Bogleheads when you had to write this stuff.

Clever way to push pre-nups! A pre-nup would not have helped poor Sammy. What Sammy needed was more emotional restraint so that he would not have panicked and foolishly invested his half mill. Also, Sammy could have avoided all of this misery by paying more attention to Sandy during their very long relationship.
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Re: What is Sammy Savers net worth?

Post by The Wizard »

If we liquidate Sammy's estate upon his death today, what would we have, that is the question.
The $500K taxable gets a stepped up basis so that's easy.
The $500K tax-deferred becomes an inherited IRA for someone, so we'd need a tax bracket to work with. Let's assume 25%, so that's worth $375K in real dollars.
If the inheritor pulls out the entire $500K in one year, taxes would be higher, so remainder would be less.

So net worth is something less than $875K...
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Re: What is Sammy Savers net worth?

Post by nordlead »

The Wizard wrote:If we liquidate Sammy's estate upon his death today, what would we have, that is the question.
The $500K taxable gets a stepped up basis so that's easy.
The $500K tax-deferred becomes an inherited IRA for someone, so we'd need a tax bracket to work with. Let's assume 25%, so that's worth $375K in real dollars.
If the inheritor pulls out the entire $500K in one year, taxes would be higher, so remainder would be less.

So net worth is something less than $875K...
You forgot to add the $255 SS death benefit
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Re: What is Sammy Savers net worth?

Post by keystone »

Based on how I calculate net worth, the answer is $1 million.
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Re: What is Sammy Savers net worth?

Post by TheTimeLord »

nordlead wrote:
The Wizard wrote:If we liquidate Sammy's estate upon his death today, what would we have, that is the question.
The $500K taxable gets a stepped up basis so that's easy.
The $500K tax-deferred becomes an inherited IRA for someone, so we'd need a tax bracket to work with. Let's assume 25%, so that's worth $375K in real dollars.
If the inheritor pulls out the entire $500K in one year, taxes would be higher, so remainder would be less.

So net worth is something less than $875K...
You forgot to add the $255 SS death benefit
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Re: What is Sammy Savers net worth?

Post by mptfan »

The Wizard wrote:If we liquidate Sammy's estate upon his death today, what would we have, that is the question.
The $500K taxable gets a stepped up basis so that's easy.
The $500K tax-deferred becomes an inherited IRA for someone, so we'd need a tax bracket to work with. Let's assume 25%, so that's worth $375K in real dollars.
If the inheritor pulls out the entire $500K in one year, taxes would be higher, so remainder would be less.

So net worth is something less than $875K...
Since we are speculating, let's speculate that the heir of the inherited IRA is in the 10% tax bracket, so the after tax net worth would be something around $950,000. But then that is not my understanding of what net worth means. I was taught that net worth equals current assets - current liabilities. What your current assets may be worth in the future to your heirs after you die and after taxes are paid does not answer the question. If the question is "what might Sammy's estate be worth in the future to his heirs after he dies?" then sure.
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Re: What is Sammy Savers net worth?

Post by sesq »

Less than $1M.

His tax deferred accounts will be subject to some level of tax (with 25K of pension/ss income, though the SS may be excluded if he keeps is income below the threshhold), so he has a deferred tax liability of some amount.

His taxable accounts have an unknown basis, so he may have a deferred tax liability if the FMV is greater than the basis. He may qualify for the 0% rate if he manages to stay in the 15% bracket, $37,450

It is unclear if he lives in a state that levies an income tax or taxes on investment income.

Best case scenario, he lives frugal and keeps below the SS tax threshhold (half benefits = $7,500, plus pension, 10k = $17500, single base is $25k, so his withdrawals/gains are $7,500 or less) and lives in a tax free state. His taxable account has no built in gain, and his meager distributions keeps him in the 10% bracket. So the tax deferred account takes a $50k hit for deferred taxes and his net worth is $950k.

Trouble is, the SS taxation base isn't indexed to inflation yet his pension and benefits are. At some point he will trip the taxation of SS (RMD's may do it) and the true deferred taxes in those years will be closer to 30%. In that case, net worth will be $850k.

Oh, wait, he is 58. He could likely delay SS and do Roth conversions and cap gain harvesting for 12 years to manage his tax rate in lower income years. He will still pay some taxes, so I'll say $950.
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Re: What is Sammy Savers net worth?

Post by The Wizard »

Net Worth is a "now" thing.
It doesn't include earnings or other income that terminates on death.
It includes the Fair Market Value of things like jewelry, real estate, and motor vehicles.
And it probably should include the tax-adjusted value of things, where applicable.
So in the case of $500k tax deferred, we need to withdraw it all ASAP as ordinary income and determine the after tax value.
Sorry, them's the rules...
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Re: What is Sammy Savers net worth?

Post by Ron »

The Wizard wrote:The $500K tax-deferred becomes an inherited IRA for someone, so we'd need a tax bracket to work with. Let's assume 25%, so that's worth $375K in real dollars.
Unless that 500K is a bequest to a charity.

Per FIDO, "A tax-exempt public charity can withdraw pre-tax monies from non-Roth retirement accounts, such as Traditional IRAs and 401(k)s without paying income taxes".

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Re: What is Sammy Savers net worth?

Post by ourbrooks »

If Sammy wants to trade options at a brokerage, it's only $500,000.
The requirements for trading options at brokerages are defined as follows (http://www.regulatorycompliance.com/new ... Worth.html)
Liquid Net Worth – In reviewing whether or not a person is suitable to make investments in many long-term or illiquid securities, such as UITs, REITs, and annuities, firms must look at a person’s liquid net worth. So what exactly is liquid net worth? Basically, it is that portion of a person’s net worth that can easily be converted to cash, which includes cash on hand or in the bank and investments, such as stock or mutual funds. It does not include assets such as a person’s house, other real estate, or investments that have no ready market or that would involve significant penalties to liquidate. A home mortgage or loans on investments would be considered liabilities when calculating this amount. Therefore, liquid net worth is generally significantly lower than accounting net worth.
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Re: What is Sammy Savers net worth?

Post by TheRightKost87 »

The Wizard wrote:Net Worth is a "now" thing.
It doesn't include earnings or other income that terminates on death.
It includes the Fair Market Value of things like jewelry, real estate, and motor vehicles.
And it probably should include the tax-adjusted value of things, where applicable.
So in the case of $500k tax deferred, we need to withdraw it all ASAP as ordinary income and determine the after tax value.
Sorry, them's the rules...
Anything is "worth" what someone will pay for it... So could Sammy could include his Pension in his net worth, if he could get someone to make an offer on it as an annuity? If someone would be willing to give him, say, 150K cash today in exchange for all his future pension and SS checks?
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Re: What is Sammy Savers net worth?

Post by Clearly_Irrational »

It all depends on your definition of net worth and which way you want to look at it. For me, I use the liquidation approach, as in how much cash would Sammy have if he sold everything and paid off his debts today. In that scenario the SS and Pension are worthless since they can't be factored. (at least I don't think so) The taxable is worth full value while the deferred account will have to be discounted by his early withdrawal penalty and current tax rate. At a rough estimate call it somewhere in the neighborhood of $810k or so. (assuming he doesn't have other unlisted assets like a car, house, etc.)
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Re: What is Sammy Savers net worth?

Post by Twins Fan »

Yet another thread to show us how many ways net worth is figured by the masses. :happy

I would also call Sammy's net worth $1m, in this scenario.

Just as I don't count my income/human capital now into net worth, I would leave it out of that one also. I keep it simple... assets and liabilities in hand, so to speak.
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Re: What is Sammy Savers net worth?

Post by TheRightKost87 »

I think at the minimum you have to take an estimated amount out for taxes. That's essentially the government's asset Sammy is carrying on his balance sheet. Granted, it is an unknown amount (future tax rates, withdrawal percentages, other earned income could all change), but whatever is paid out isn't his money.
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Re: What is Sammy Savers net worth?

Post by alex_686 »

TheRightKost87 wrote:Anything is "worth" what someone will pay for it... So could Sammy could include his Pension in his net worth, if he could get someone to make an offer on it as an annuity? If someone would be willing to give him, say, 150K cash today in exchange for all his future pension and SS checks?
Or you could do the flip calculation – not what he would be willing to sell it for but what one would be willing to buy.

One can buy an immediate annuity with a 4% payout at the age of 62. He has 25k in annual income per year. 25k / 4% = 625k. This need to be discounted somewhat since Sammy is 58, but not by much.

Some "rich" people will struggle with retirement because they lack retirement income. Some "poor" people will do quite well because of their pension benefits. Good pension benefits are expensive and have value.
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Re: What is Sammy Savers net worth?

Post by ourbrooks »

I presume that Sammy is a renter. If he had a home, then you could ask whether the value of the house was part of his net worth.

In addition to trading options and buying hedge funds, the other use of net worth numbers would be in divorce proceedings. I do know that future pensions and Social Security are taken into account in divorce proceedings, as is the value of a house. Obviously, the definitions of net worth for these two situations are different.

Which definition did the OP have in mind in posing the question?
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Re: What is Sammy Savers net worth?

Post by GoldenFinch »

Twins Fan wrote:Yet another thread to show us how many ways net worth is figured by the masses. :happy
Masses, nothing! Net worth is what you have in the bank. Period. Future payment stuff (SS and pension) doesn't count. Too futuristic and fluffy. Kind of, you can count on it, but not count it. :happy
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Re: What is Sammy Savers net worth?

Post by The Wizard »

GoldenFinch wrote:
Twins Fan wrote:Yet another thread to show us how many ways net worth is figured by the masses. :happy
Masses, nothing! Net worth is what you have in the bank. Period. Future payment stuff (SS and pension) doesn't count. Too futuristic and fluffy. Kind of, you can count on it, but not count it. :happy
Let's think about this a bit.
Can you "assign" SS and pension payments to someone else for the next 30 or 40 years, in the event you die next week?
If so, then yes, we have an inheritable income stream with a computable value that can be included in net worth.
Go research this and report back...
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Re: What is Sammy Savers net worth?

Post by GoldenFinch »

The Wizard wrote:
GoldenFinch wrote:
Twins Fan wrote:Yet another thread to show us how many ways net worth is figured by the masses. :happy
Masses, nothing! Net worth is what you have in the bank. Period. Future payment stuff (SS and pension) doesn't count. Too futuristic and fluffy. Kind of, you can count on it, but not count it. :happy
Let's think about this a bit.
Can you "assign" SS and pension payments to someone else for the next 30 or 40 years, in the event you die next week?
If so, then yes, we have an inheritable income stream with a computable value that can be included in net worth.
Go research this and report back...
Reporting back. :happy

My research is simply that I'm 48 and am not counting on either. Will they probably be there? Yes. But,no guarantee. When I log on to SSA.org and look at my future SS payment it says right there that I may not get the number predicted because I will be 65 in 2031. I think I will get some (75%?) or maybe all of it, but I don't count it in my net worth. I also don't count on my pension. I save a lot instead and count what I have today.
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Re: What is Sammy Savers net worth?

Post by GoldenFinch »

GoldenFinch wrote:
The Wizard wrote:
GoldenFinch wrote:
Twins Fan wrote:Yet another thread to show us how many ways net worth is figured by the masses. :happy
Masses, nothing! Net worth is what you have in the bank. Period. Future payment stuff (SS and pension) doesn't count. Too futuristic and fluffy. Kind of, you can count on it, but not count it. :happy
Let's think about this a bit.
Can you "assign" SS and pension payments to someone else for the next 30 or 40 years, in the event you die next week?
If so, then yes, we have an inheritable income stream with a computable value that can be included in net worth.
Go research this and report back...
Reporting back. :happy

My research is simply that I'm 48 and am not counting on either. Will they probably be there? Yes. But,no guarantee. When I log on to SSA.org and look at my future SS payment it says right there that I may not get the number predicted because I will be 65 in 2031. I think I will get some (75%?) or maybe all of it, but I don't count it in my net worth. I also don't count on my pension. I save a lot instead and count what I have today.
I kind of liked my "...you can count on it, but not count it."
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Re: What is Sammy Savers net worth?

Post by lumberingc »

Damn...That is seriously profound.

-Lumbering

saladdin wrote:Zero.

Sammy came home early from golf on Sunday and found wife Sandy in bed with his brother Steve. Sammy was heart broken because he and Sandy had been childhood sweethearts and married after high school. Sammy always looked up to Steve as a kid. You see, Sammy and Steve's dad liked to drink and made his son's watch soccer on tv while drunk and Sammy HATED soccer. Sammy's dad would make him play goal keeper and kick soccer balls at him.

Sandy was a cheerleader, the prettiest one in school. She would cheer so loudly for the Smurfs (their highschool mascot) and all the boys would chase after her. But Sammy is the one she let catch her. He called her his little Smurfette (all you kids ask your parents what Smurfs are). They were a happy couple and spent every minute together. Than the night before high school graduation over a Big Mac, Sammy popped the question. Sandy let out a big YES! and he slipped the dime store ring on her finger. They were married at the court house 3 days later. "I promise one day I''ll give you every nice thing you could want" Sammy told her.

Life went on. Sammy went to work at the local Radio Shack knowing they would be in business forever. He worked his way up the company until finally he owned a string of Radio Shacks. Money was pouring in and thankfully Sammy was a saver. Once his brother Steve tried to talk him into buying stock in Best Buy but Sammy refused saying "Index funds are where the cool kids invest." So he saved and saved so that he and Sandy would have the perfect retirement.

But what Sammy didn't know was that Sandy was lonely. Sammy was working 80 hours a week at The Shack trying to provide but that didn't solve Sandy's loneliness. Sammy sensed something was off and finally asked her "What's the deal?"
Sandy said that since Sammy was working all the time she was getting lonely. "I've binged watched all of Breaking Bad and now I need something to occupy my time." Sammy came up with the perfect solution, " Let's have a kid. That solves everything."

So that's what they did. Little Sissy was born 9 months later happy and healthy. Sammy loved Sissy very much and was a good father. He opened up a 529 and even a ROTH when she went to work at his Radio Shack at age 13. Their relationshp was perfect except for her love of soccer. "It's just a phase" he said to himself, "She'll grow out of it."
But she didn't.

Years passed by and Sissy graduated from highschool and enrolled in state college with a soccer scholarship. After discussing it with her dad Sissy decided getting a degree in Arts was foolish and decided to become an engineer. She zoomed through college, got a great job and moved off to Colorado. Now, the house was empty again. "It's time to enjoy retirement," he told Sandy and he took up golf.

Sammy was returning home after his first golf lesson that Sunday when he pulled into the driveway. He walked up the stairs quietly so he could surprise his wife. As he got closer to the bedroom he could hear the sounds. "It can't be" he thought. He pushed the door open and there they were, Steve and Sandy laying in bed...watching soccer. Tears came to Sammy's eyes as he staggered back downstairs. "I'm sorry Sammy. I know you hate soccer but I...love it."

Sammy couldn't forgive her so he filed for divorce. Since there was no pre-nup Sammy's assets were divided 50/50. Sammy wanted to make up for those losses by trying to make easy money in the stock market so he put all his money into Circuit City stock. He lost everything

So, his networth is now zero.
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Re: What is Sammy Savers net worth?

Post by LadyGeek »

saladdin wrote:He lost everything

So, his networth is now zero.
Correct for that situation. The operative word is "now". After I stopped laughing, I updated the wiki to take care of the OP's question.
TheTimeLord wrote:What would you consider Sammy Savers net worth be with the following situation. Sammy is 58 years old?

Taxable Accounts - $500,000
Tax Deferred Accounts - $500,000
Eligible Full Benefit Social Security Benefit - $15,000/yr
Pension with a COLA - $10,000/yr
No Debt
$1,000,000. See the wiki: Net worth
A net worth statement reports the market value of your assets and the balance owed on your debts at a MOMENT in time (compare to an income statement and/or budget). For example, you might create a net worth statement for yourself as of December 31, 2014. The difference between the total value of your assets and the total balance of your debt is your net worth.[2]
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Re: What is Sammy Savers net worth?

Post by 555 »

TheTimeLord wrote:What would you consider Sammy Savers net worth be with the following situation. Sammy is 58 years old?

Taxable Accounts - $500,000
Tax Deferred Accounts - $500,000
Eligible Full Benefit Social Security Benefit - $15,000/yr
Pension with a COLA - $10,000/yr
No Debt
I don't think anyone could reasonably argue with a figure of about $1.5M.
The income streams are worth >$600k.
Taxes will be well below 15%.
You didn't mention house, human capital etc, but you'd have to add those in too, of course.
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Re: What is Sammy Savers net worth?

Post by letsgobobby »

Any response outside of $1 million is nonstandard.

If sammy died tomorrow he could leave $1 million to charity, not more or less.
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Re: What is Sammy Savers net worth?

Post by MarkBarb »

I'd ask him what he wants the number for. If he's looking for bragging rights, he could include the NPV of his pension and even SS. If he's trying to sound as poor as possible, he would ignore the income streams and use the after tax value of his savings. If he's trying to assess his retirement income, he shouldn't be focused on net worth and should be focused on how much spendable income he'll generate. If he's trying to compare his net worth honestly with someone else, he should use the same method that they use.

Quicken calculates my net worth based on the above as $1,000,000. Well, unless I have some type of vested lump sum payout option for the pension, then that would be included. I find it kind of silly though because if I move money from an IRA to a Roth IRA and pay taxes on it now, my calculated net worth drops significantly more than my ability to spend in retirement. I ignore the net worth number and give my wife estimates of our ability to spend in retirement based on current and projected savings and make that relative to our current expenses. In the end, that's what we really want to know - at what age can we retire while maintaining a substantially similar lifestyle.
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Re: What is Sammy Savers net worth?

Post by LadyGeek »

To keep this actionable, I assume the OP is asking about his own situation (or potential situation). The discussion should remain focused on these aspects.

TheTimeLord - Was your question answered?
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Re: What is Sammy Savers net worth?

Post by Kenkat »

TheTimeLord wrote:
kenschmidt wrote:
nordlead wrote:yay, another one of those how do you calculate net worth threads...

Anyways, I do simple math because it is good enough for me.

$1m with a yearly income of $10k (assuming he is eligible for his pension now). At 67 he'll have a yearly income of $25k in today's dollars.
+1

Any income above $25k per year (at full retirement) needs to be generated by the $1mm.
How does this address the question asked? Do you need additional parameters?
You asked what I think is a simple question. No need to get into trying to calculate a current value of the pension or SS in my opinion. It's an income stream. When you die, it goes away.

What type of answer were you hoping to get? :?:
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Re: What is Sammy Savers net worth?

Post by 2stepsbehind »

letsgobobby wrote:Any response outside of $1 million is nonstandard.

If sammy died tomorrow he could leave $1 million to charity, not more or less.
No, he could leave $1 million + the proceeds of the sale of his house minus any associated real estate fees. I think the $1 million figure listed above understates his networth in not including the value of his debt-free home.
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Re: What is Sammy Savers net worth?

Post by goingup »

The question got edited this morning to include $250K home with no mortgage. Why the question got edited to include this is a mystery, but it makes every subsequent answer wrong!
The original question read:

TheTimeLord wrote:
What would you consider Sammy Savers net worth be with the following situation. Sammy is 58 years old?

Taxable Accounts - $500,000
Tax Deferred Accounts - $500,000
Eligible Full Benefit Social Security Benefit - $15,000/yr
Pension with a COLA - $10,000/yr
No Debt
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Re: What is Sammy Savers net worth?

Post by HardKnocker »

$1,250,000
“Gold gets dug out of the ground, then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility.”--Warren Buffett
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Re: What is Sammy Savers net worth?

Post by HardKnocker »

saladdin wrote:Zero.

Sammy came home early from golf on Sunday and found wife Sandy in bed with his brother Steve. Sammy was heart broken because he and Sandy had been childhood sweethearts and married after high school. Sammy always looked up to Steve as a kid. You see, Sammy and Steve's dad liked to drink and made his son's watch soccer on tv while drunk and Sammy HATED soccer. Sammy's dad would make him play goal keeper and kick soccer balls at him.

Sandy was a cheerleader, the prettiest one in school. She would cheer so loudly for the Smurfs (their highschool mascot) and all the boys would chase after her. But Sammy is the one she let catch her. He called her his little Smurfette (all you kids ask your parents what Smurfs are). They were a happy couple and spent every minute together. Than the night before high school graduation over a Big Mac, Sammy popped the question. Sandy let out a big YES! and he slipped the dime store ring on her finger. They were married at the court house 3 days later. "I promise one day I''ll give you every nice thing you could want" Sammy told her.

Life went on. Sammy went to work at the local Radio Shack knowing they would be in business forever. He worked his way up the company until finally he owned a string of Radio Shacks. Money was pouring in and thankfully Sammy was a saver. Once his brother Steve tried to talk him into buying stock in Best Buy but Sammy refused saying "Index funds are where the cool kids invest." So he saved and saved so that he and Sandy would have the perfect retirement.

But what Sammy didn't know was that Sandy was lonely. Sammy was working 80 hours a week at The Shack trying to provide but that didn't solve Sandy's loneliness. Sammy sensed something was off and finally asked her "What's the deal?"
Sandy said that since Sammy was working all the time she was getting lonely. "I've binged watched all of Breaking Bad and now I need something to occupy my time." Sammy came up with the perfect solution, " Let's have a kid. That solves everything."

So that's what they did. Little Sissy was born 9 months later happy and healthy. Sammy loved Sissy very much and was a good father. He opened up a 529 and even a ROTH when she went to work at his Radio Shack at age 13. Their relationshp was perfect except for her love of soccer. "It's just a phase" he said to himself, "She'll grow out of it."
But she didn't.

Years passed by and Sissy graduated from highschool and enrolled in state college with a soccer scholarship. After discussing it with her dad Sissy decided getting a degree in Arts was foolish and decided to become an engineer. She zoomed through college, got a great job and moved off to Colorado. Now, the house was empty again. "It's time to enjoy retirement," he told Sandy and he took up golf.

Sammy was returning home after his first golf lesson that Sunday when he pulled into the driveway. He walked up the stairs quietly so he could surprise his wife. As he got closer to the bedroom he could hear the sounds. "It can't be" he thought. He pushed the door open and there they were, Steve and Sandy laying in bed...watching soccer. Tears came to Sammy's eyes as he staggered back downstairs. "I'm sorry Sammy. I know you hate soccer but I...love it."

Sammy couldn't forgive her so he filed for divorce. Since there was no pre-nup Sammy's assets were divided 50/50. Sammy wanted to make up for those losses by trying to make easy money in the stock market so he put all his money into Circuit City stock. He lost everything

So, his networth is now zero.
Ha! :sharebeer
“Gold gets dug out of the ground, then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility.”--Warren Buffett
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Re: What is Sammy Savers net worth?

Post by letsgobobby »

2stepsbehind wrote:
letsgobobby wrote:Any response outside of $1 million is nonstandard.

If sammy died tomorrow he could leave $1 million to charity, not more or less.
No, he could leave $1 million + the proceeds of the sale of his house minus any associated real estate fees. I think the $1 million figure listed above understates his networth in not including the value of his debt-free home.
OP changed his query after my post, thus invalidating all subsequent responses.
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Re: What is Sammy Savers net worth?

Post by LadyGeek »

letsgobobby wrote:...OP changed his query after my post, thus invalidating all subsequent responses.
Thanks, I missed that. Changing the original question does indeed invalidate the responses and has derailed the thread.

Let's call this thread done (no added value to continue). This thread has run its course and is locked. See: Forum Policy
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