# When calculating net-worth, how to discount money in an RRSP?

Suppose that I have the following account balances:

``````Personal Banking Account  \$10,000
TFSA                      \$40,000
RRSP                      \$60,000
``````

I would like to calculate my net-worth.

The nuance to this problem is that, the money that is in the RRSP will be taxed when it is removed. How should I estimate how much of that money is mine?

Right now I know that my networth is somewhere between \$80k (discounting 50% of RRSP) and \$110k (discounting none of the RRSP).

Things to consider:

• I am not sure how much I will make in retirement
• I am not sure how much my RRSP will grow or how much I will contribute to it

I could just discount the money in my RRSP by an arbitrary number like 20% but if there is a better (but still easy) way to do this, I would be interested.

• I totally agree with your first two paragraphs, but your 3rd paragraph seems to have an incorrect conclusion. `I generally just look at the pre-tax value` <- this seems too optimistic for me. There is close to zero chance that you will pay zero tax on your RRSP withdrawals (right?). The government owns some part of the money in your RRSP, so counting that you own the whole thing, is misleading at best. Jun 16, 2020 at 15:24