Should you include your home in your net worth?
I admit it.
From a retirement perspective, I find it hard to include my home in my overall net worth. Granted, it is an asset with appreciable value and strictly from an accounting perspective, it should be includced. Also, I guess if I really needed the funds, I could liquidate it with a reverse mortgage, but I'm still having a hard time with it.
Perhaps it's the fact that I'm looking to retire early and will need to draw on my liquid funds much more than people retiring in their 60's. I'm not sure. Either way, if you look at a number of the profiles on NetworthIQ, you easily find a lot of profiles where the majority of the net worth is due to a large real estate holding (sometimes with a minimal mortgage, but still).
With my home included, my net worth is $832k, without it, it drops to $461k. In terms of retiring early, I want to make sure the latter number is as high as possible and it's just not there yet.
What do other people think about including your home in networth, as it relates to retiring early?