When you want to calculate your net worth, should you include the cash value in your whole life insurance policies and money in your CPF accounts (OA, SA, MA)?

I actually feel that it depends on which life stages you are at right now. Though many of the comments here would include CPF and whole life insurances to their net worth, I beg to differ.

For myself, I am only 22 this year. It would take me at least another 33 years to 'touch' my CPF. Although yes, I can use it earlier to buy housing etc. But still, if I were to sell the house, I need to 'return' the money.

I would be more interested to calculate the growth in my savings, investments, etc. Which would help me in my finacial planning better.
However, if you are calculating your net worth to plan for retirement, yes. Since you can withdraw your CPF from 55 onwards / 65 onwards for monthly payout, you can include that in your calculations to see how much you need to save now to prepare for retirement.

Hi anon,

Yes, I would include it.

Your net worth is a measure of what and how much assets are in your name, and that will become available for distribution if you are no longer around. Naturally, some items will not be touchable, such as CPF MA, but monies there will be given to your next of kin if you are gone. So, you may include it. You might want to consider segmenting your net worth into liquid and illiquid if you wanted a more detailed breakdown.

Some ideas for what can fall under your net worth, as well as categorization:

• Liquid net worth would include cash and near cash assets such as bank monies and FDs.

• Invested assets would include your bonds, stocks, investment property, etc. This is where the whole life cash value may come into the picture, as that is the amount available to you if you liquidate it. Investment items like art works and watches can also count.

• CPF can be a category on its own

• Personal assets would be a little more illiquid but still count towards your net worth, such as residential property or the value of your vehicle

• Remember to net off liabilities such as mortgage and loans.

As always, remember to make a CPF nomination and a will to ensure distribution of your estate according to your wishes. Documenting your net worth will be helpful in completing your schedule of assets for a will, so that your loved ones know what you have.