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Confession. Same boat. How do you count equity in a one story brick house which had a $108,000 assessment increase last year as a real net worth increase unless you sell the house?

as Gus said ....

you take the actual value of the house (not assessed ...i watch transactions in the neighborhood) minus what you owe on the mortgage.

subtract a liberal amount for bubble, a bit more for Uncertainty, then a bit more for transaction costs.

then subtract what you'd pay for a house you'd be willing to move to.

..... result : about a buck eighty.

in my case, for calculating "enough to survive retirement?" i use zero.... maybe i should bump that to $18.50

for the sake of saying, "neener neener i'm a LIBERAL millionaire", i use 95% of price of recent sale in my neighborhood.

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