[Casey]

I’m curious what folks think about including unvested RSU’s in their net worth calculations.

I have some in which a portion of the total vests annually, and I do receive the dividend payments quarterly, so, in my mind they are assets; just not liquid assets.

[Justin]

Would you also consider future paychecks you haven’t received yet as part of your net worth?

After all, they’re “promised” as long as you stay at your job, just like the unvested RSU’s.

Until it vests and it’s in my pocket, it’s not part of my net worth.

[Adam]

The bigger question is what are you using that net worth number to do? Is it just a yardstick to determine if you’re on track for retirement?

Comparison tool against other people and where you stack up?

I don’t find net worth to really mean much in the real world.

[Dave]

If there is a chance your employer keeps them if you quit, then I’d only use what has landed in your bank account.

Employers often take it back if you go to a competitor or if you quit before full retirement age.

[Rick]

In net worth, no as accounting rules are rules. Fi worth, sure as it probably helps you visualize your journey plan.

[Kevin]

Yes, but as a separate line item “below the line” (resulting in a separate total, below my Invested Grand Total, just like my real estate assets).

[Jordan]

Stop tracking networth. Full stop
Track your expenses over several years and track total dollars that are actually working for you, and average their returns over a 5-10 year period.

Plot an estimate forward. Once interest meets or exceeds expenses (exceeds by more than 1%), congrats, you’ve reached milestone one – Coast / LeanFi and have a small celebration and reevaluate your life decisions and ESPP/RSU/options then, and only then.

Form a future plan then. Automate. Watch money flow in quarterly. Think of it as paying yourself a quarterly bonus. Otherwise, it’s funny money

[Jule]

I only include it once the shares are vested and transferred over to my Fidelity account.

[Sean]

I do not as there is no guarantee I will receive them. In fact I’m mildly annoyed that Fidelity counts them in their account value calculation (account linked from E*Trade)!

On the net worth spreadsheet I update monthly I do show the next vesting date and current value and unpaid but earned commissions (I’m in sales), but that’s just for visibility and they aren’t included in the calculations.

[Jasmine]

If you get let go, do you get to keep the RSUs? If no, then don’t count them.

[Brian]

I count them, because they’re mine unless I choose to walk away from them or do something stupid to lose them, just like my house or the shares that already vested.

[Karen]

We have business equity, not RSUs but similar, where the current value is hard to calculate.

We assign it a value when we figure our NW but know in the back of our mind that this value is notional-only.

[Scott]

It’s an asset but being unvested its is 100% illiquid and you won’t know at what share price it will vest.

Obviously in your control to collect just don’t quit your job.

You should know the rules on what happens if you retire, leave, or are terminated.

[Brenda]

I’ve been through so many layoffs where some of the best people were let go that I wouldn’t include them.

In my case, I intend to retire before all are vested, so I definitely don’t want to include them.

[Author]

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