How do you account for illiquid assets?
If I have over $6m in net worth, but most of that is illiquid, how I take that into account when determining my "number"? I am so ready to retire! My job is killing me.
I'm almost 53, and my illiquid assets are an interest in a business that I own with my siblings, and then I own a rental property, mostly paid off, and parts of several commercial buildings. The business occupies the commercial buildings, so it would be difficult to sell my portions. Only $2.7m is liquid (savings, brokerage, retirement accounts).
I want about $240k a year. I'll get some rental income and about $100k a year from the business starting next year. I'm currently saving $200-300k a year. According to the Fidelity retirement analysis, which only takes into account my liquid assets and the income sources, I could run out of money in a significantly below average market when I'm 73. However, since that only covers liquid assets, it seems like I could just sell my primary residence, which will be almost paid off by then, and move into one of my rental units (the building is already almost paid off now), if I'm desparate, and I'd be fine.
Do you base your goal number on net worth minus your house? Or just on liquid assets?
I'll work until the end of 2027, based on my compensation structure (must be there at year end for 30-40% of comp) and that due to the type of work that I do, if I know I'm leaving I can coast from April 1 to December. Can I be done then?
(Apologies for any spelling/grammar issues; I'm on my phone because my office computer blocks this sub as porn?!?)