Net-Worth Planning
A net-worth statement is a snapshot of assets minus liabilities. Its greatest value is not the headline number but the detail behind it.
List assets by purpose and liquidity
Separate cash, retirement accounts, taxable investments, business interests, real estate, vehicles, and other property. Note how quickly each asset could be accessed and the costs or taxes involved.
List liabilities by cost and risk
Record balances, rates, payments, collateral, and whether the debt has fixed or variable terms.
Look beyond the total
- How much is liquid?
- Is wealth concentrated in one company, property, or business?
- Are short-term obligations supported by accessible assets?
- Is high-cost debt slowing progress?