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No need to make up your own definitions. Net worth = assets - liabilities. 401(k) and IRAs count as assets, and you can draw from them with various amount of fl
by pb7 6y ago
No need to make up your own definitions. Net worth = assets - liabilities. 401(k) and IRAs count as assets, and you can draw from them with various amount of flexibility depending on how dire your financial situation is.
- mehrdadn 6y agoJust substitute your preferred terminology if you weren't a fan of mine. I was just trying to get a point across, not debate semantics.
- jayd16 6y agoI can't read the paywalled story but did pensions count towards net worth? If not then the inclusion of retirement assets into net worth is clearly misleading when looking at historical numbers.
- Keverw 6y agoYeah but tax penalties and other fees for withdrawing early.
- pb7 6y agoNot really, as outlined here[0]. Even with penalties, becoming homeless and becoming homeless with a million in a 401(k) are vastly different despite some folks here thinking both are equally broke somehow. [0] https://news.ycombinator.com/item?id=24550715 https://news.ycombinator.com/item?id=24550715
- Keverw 6y agoYeah seen that, not too well up on all this. Sounds like they are talking about converting their account. I guess maybe a lot of people aren't up on this sort of stuff or aware of all their options unless maybe they went to college to be an accountant maybe.