Calculating Net Worth for Decisions About Your Future

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As you seek financial security, the road may be paved with a variety of investments and strategies. But before you travel too far, you may want to see if you're headed in the right direction. By calculating your net worth, you'll have a better understanding of where you are financially and be better prepared to make important decisions about your future.

What to know before you begin

What exactly is net worth? It's what's left over when you add up all your financial assets and subtract all your financial liabilities or debts. Your financial assets may include money in bank accounts, stocks, bonds, mutual fund shares, assets in retirement accounts, and the value of any real estate you own. Unless you plan to sell your home and your car, you shouldn't include them among your financial assets.
Your liabilities may include outstanding loans and credit card debt. Don't include your mortgage unless you listed your home among your financial assets.
The following worksheet will help you tally up your net worth. Whether the result is less or more than you expected, don't be too alarmed or excited. Your net worth is only one measure of your financial health and your potential ability to meet long-term goals. It's really just a starting point for a long-term financial strategy. Once you put your net worth in perspective, you'll be ready to develop and implement a suitable long-term financial plan with the assistance of a qualified financial professional.
Your financial assets:
Bank Accounts (savings, checking accounts, money markets, CDs) $______
Retirement Accounts (employer plans, IRAs, pensions) $______
Other (stocks, bonds, non-residential real estate) $______
Total assets $______
Your financial liabilities:
Loans (car, student) $______
Credit Card Balances $______
Other $______
Total liabilities $______
Your net worth:
Subtract your liabilities from your assets $______

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The material was authored by a third party, DST Retirement Solutions, LLC, an SS&C company ("SS&C"), not affiliated with Merrill or any of its affiliates and is for information and educational purposes only. The opinions and views expressed do not necessarily reflect the opinions and views of Merrill or any of its affiliates. Any assumptions, opinions and estimates are as of the date of this material and are subject to change without notice. Past performance does not guarantee future results. The information contained in this material does not constitute advice on the tax consequences of making any particular investment decision. This material does not take into account your particular investment objectives, financial situations or needs and is not intended as a recommendation, offer or solicitation for the purchase or sale of any security, financial instrument, or strategy. Before acting on any recommendation in this material, you should consider whether it is in your best interest based on your particular circumstances and, if necessary, seek professional advice.

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