David Lerner Associates: Determining net worth

David Lerner Associates: Determining net worth

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2014-09-01

Question:

How can I determine my net worth?

Answer:

To determine your net worth, add up the current value of all of your assets, after that add up the current amount of all your liabilities. Subtract your total liabilities from your total assets. The amount you end up with is your net worth. Assets can consist of cash, checking accounts, certificates of deposit (CDs), mutual funds, stocks, bonds, IRAs, 401(k) plans, vehicles, and real estate. Liabilities may consist of debt from credit cards, student loans, mortgages, home equity loans, 401(k) loans, and car loans.

If you are married, take this a step further. List your assets and liabilities under the name of the owner, so you can then determine net worth values for you, your spouse, and both of you as a couple.

The initial step in the financial planning procedure must be to determine your net worth. Once you figure out your net worth, you will understand precisely what you have and what you owe, enabling you to begin mapping out your financial future. Keep in mind that your net worth constantly changes. As a result, you should calculate your net worth annually and make adjustments as needed to ensure that you are meeting your financial goals.

 

IMPORTANT DISCLOSURES

Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable-- we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

Some of this material has been provided by Broadridge Investor Communications Solutions, Inc.

Member FINRA & SIPC 

 

Tags: net worth, financial planning, assets, mutual funds, stocks, IRAs, loans, debt, financial goals

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About

Founded in 1976, David Lerner Associates is a privately-held broker/dealer with headquarters in Syosset, New York and branch offices in Westport, CT; Boca Raton, FL; Teaneck and Princeton, NJ; and White Plains, NY. For more information contact David Lerner Associates Call 1-800-367-3000 Visit our website: http://www.davidlerner.com

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Contact

Jake Mendlinger
Account Manager
Zimmerman/Edelson
516.829.8374 X 232
jmendlinger@zimmed.com

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