Are you on track to reach your financial goals? Have you saved enough for retirement or? Will there be enough money for the children’s college education? A net worth statement can help you answer these questions by giving you a snapshot of your overall financial situation.
Calculating your net worth isn’t a long, difficult process. It is simply a grand total of everything you own, minus everything you owe. So grab a piece of paper, a pencil and your most recent financial statements, and let’s get started:
- List the value of your liquid accounts, using your most recent account statements for reference. These include checking, savings, money market accounts, CDs and cash on hand.
- Write down the value of any pensions, profit sharing plans, 401(k) accounts, IRAs and cash values of any life insurance policies.
- List the market value of your home, rental property, and any vehicles and boats you own.
- List the value of your personal property. These items include your jewelry, coin collections, antiques and art. If you don’t have an appraisal, you might consider getting one.
- Add up the value of these assets to get a grand total.
- Next calculate your liabilities. Write down the largest debts first, like home mortgages, vehicles and boat loans.
- Next, list credit card balances, as well as outstanding student loans and personal debt.
- Add up all your liabilities to get a total.
- The last step is to subtract your liabilities from your assets to get your net worth.
If you would like to discuss your situation with an LGFCU Financial Advisor, call 877.367.5428 or email email@example.com. We are always happy to help.