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Subject:  Re: Pension figured into Networth??? Date:  10/14/1999  11:07 AM
Author:  JABoa Number:  14525 of 88063

I think there are two things going on in this thread that are being confused. I'm a bit confused, anyway.

The first is what I would call net worth, which is what your estate would be worth if you cash in your chips tomorrow. So a pension which has a death benefit in cash counts, but one which you will not collect if you die too soon doesn't.

The second is how to make a gross calculation of an equivalent sum of money that takes pensions into account when you want to decide on an investment strategy for retirement planning. In this case, the calculation of the present value of a pension that you might not get, makes sense. Unless Dr. Kevorkian is your primary care physician, you have to plan as though you will live to some substantial age. So, you get a decent idea of how you're doing currently.
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