Accounting for Market Value in your NW/Budget/Fire spreadsheet

[FIRE47]

Regardless of what you guys call your spreadsheet or tracking  - how do you reflect changes in market value of your portfolio and primary residence?

I used to update things to market value anytime I calculated by NW - but I feel like this could be setting myself up for disappointment or even lead to poor decision making when an inevitable crash eventually comes - which would largely be a factor out of my control.

[boarder42]

I just assume 6% inflation adjusted gains on my equity holdings. And some inflation adjusted gains on my company ESOP holdings. We plan to live in our primary residence so it isn't a factor into our fire network needed.

I update my spreadsheet a few times a year. I also use personal capital to daily track it.

Who cares about a crash. It doesn't have to come either. The market could be flat this year and the PE would get back in line.

[Indexer]

I reflect current market value.

There is a risk that you retire at the top of a market peak, thinking you have a big portfolio, only to watch a lot of it disappear. One way to combat this is if you think the market is rather high, maybe aim for a 3.75% SWR to give yourself room for error. Really, even a 4% SWR already takes into account some pretty terrible market conditions, but if you are really worried about it that gives you room for error.

[MDM]

Regardless of what you guys call your spreadsheet or tracking  - how do you reflect changes in market value of your portfolio and primary residence?

I used to update things to market value anytime I calculated by NW - but I feel like this could be setting myself up for disappointment or even lead to poor decision making when an inevitable crash eventually comes - which would largely be a factor out of my control.

We've had Quicken for many years, and it updates ~whenever we log in.

Sure showed a big drop back in 2008.  At the time, we thought "Oh, well, we weren't planning to touch that money for years anyway."  So we didn't sell anything.

Also shows a nice recovery since then.