NET WORTH IS THE VALUE of your assets, which is basically everything you own, such as your retirement savings and real estate, minus your liabilities—the total of everything you owe.
Your net worth is a good indicator of your overall financial health, says Diane Avery, a certified financial planner with Avery Financial Services in Atlanta. It’s critical to have this information before you make big financial decisions, she says.
Kiplinger’s net worth calculator at www.kiplinger .com/investing/wealthmanagement/603443/ net-worth-calculator will help you get started. To use it, you’ll need an inventory of your assets and liabilities.
ASSETS
Here’s a list of the most common assets:
Cash. This is the value of your most liquid assets, such as money you have in your checking or savings accounts. You should also include any certificates of deposit and savings bonds.
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