Planning for retirement starts with taking a clear look at your current financial
The first step is to calculate your net worth.
Your net worth is the total value of what you own (your assets) minus the money
you owe (your liabilities). To determine just where you stand, add up the approximate
value of all your assets. These might include:
- Your home.
- Your vehicles.
- Money in any bank accounts, including savings and checking.
- The cash value of any life insurance.
- The current value of any investments and retirement plans.
- Personal possessions.
Then do the same with your liabilities. These might include:
- The remaining mortgage on your home.
- Credit card debt.
- Any loans.
- Any outstanding taxes.
Then simply subtract your liabilities from your assets to determine your net worth.
Of course, your aim is to create a net worth that grows each and every year. So,
in order to make certain that you're keeping a close watch on your finances and
just where you stand, it's important to take an honest look at your net worth annually.
Once you've taken a clear look at your current financial situation, the next step
is to establish your specific retirement goals.
Now Learn More About Establishing Your Goals...