3/3 When calculating the net worth of a person far from retirement, why is
the balance in his/her 401k account included? That money hasn't been
taxed and can't be withdrawn without a penalty. Thx.
\_ Because it is part of your net worth? If you have $30 million
in your IRA but no other assets should your net worth be $0?
\_ With penalty and taxes, there's still a net worth. It's not like
penalty and taxes would negate everything you have.
\_ No, just most of it.
\_ penalty shouldn't be deducted, taxes should, in my opinion.
\_ Why? If you own $4 million in stock or in property or cars
or any other asset it is still $4 million worth. You might
pay tax when you sell and you might pay transaction fees, too.
That has nothing to do with the worth of those assets.
\_ I should say the part that's the deferred income tax.
\_ How do you know what they may be? It could be zero if,
say, capital losses offset it when you withdraw. It
could be much more than now if your income goes up a
lot. Net worth is net worth and figuring out the best
way to get income out of that is a different problem.
\_ It's an ever-changing number, genius. If your stock
has a certain value on the market today, that's the
value today and part of your networth today. If
tomorrow your stock tanks and goes to zero, then you
recalculate your net worth. Please tell me you're not
a Cal student or alum.
\_ Please tell me where what you said contradicts
what I said. Obviously, net worth is calculated
at a given point in time, genius.
\_ I didn't. Someone has been maliciously editing
and moving stuff.
\_ how exactly do they calculate capital gains and
income tax when one starts withdrawing at retirement?
can one withdraw everything at one go?
\_ if you want to pay the highest taxes possible, yes |
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