Should the home you live in count?
It belongs on the statement and not in your retirement income plan. Both things are true, and treating them as one is a common planning error.
Yes, on the statement
Net worth is assets minus liabilities, and a home is an asset with a loan attached. Leaving it out understates the household. Count it at realistic market value, net of the outstanding loan.
No, in the retirement plan
A home you live in does not pay for groceries. Unless you plan to sell it, downsize or rent it out, it cannot fund retirement — which is why a retirement corpus should be calculated on the assets that can generate income.
The practical compromise
Track two figures: total net worth including the home, and investable net worth excluding it. The first tells you where the household stands; the second tells you what you can actually live on.
Where FamTally comes in
FamTally does this for you: every asset and loan in one place, tagged to the family member who holds it, valued at today's figures, with net worth tracked as a running number the whole family can see. Add the AI assistant and you can simply ask what changed and why. Free to use.
Stop doing this in a spreadsheet
FamTally keeps your loans, income, expenses, assets, insurance and goals in one place, forecasts five years ahead, and answers questions about your own numbers. Free, and built for Indian families.
Start freeQuestions people ask
Should I include my house in my net worth?
Yes, at market value net of the outstanding home loan. But exclude it from the corpus you plan to retire on, unless you intend to sell or rent it.
What value should I use?
Recent registered sale prices for comparable homes nearby, not the asking price a broker quotes and not the price you paid.
What about a second property?
It counts, and so does its rental income — which makes it a genuine part of a retirement plan in a way your own home is not.