One of the most important financial planning steps you can do each year is to complete a Net Worth Statement. Your Net Worth is simply a snapshot of the difference between what you own (your assets) versus what you owe (your liabilities). Below is a sample statement.
I downloaded this sample from Microsoft’s website for templates and made a few changes. The primary change was to identify “investable assets”. These include items such as RRSPs and non-registered accounts. In this example, investable assets total to $235,000. This is one of your important numbers as it represents a source of funding for future goals such as your retirement.
A good time is to do it in late January since you’ll have received your annual portfolio based upon the prior year-end values. You can then estimate the
I downloaded this sample from Microsoft’s website for templates and made a few changes. The primary change was to identify “investable assets”. These include items such as RRSPs and non-registered accounts. In this example, investable assets total to $235,000. This is one of your important numbers as it represents a source of funding for future goals such as your retirement.
A good time is to do it in late January since you’ll have received your annual portfolio based upon the prior year-end values. You can then estimate the value of your real estate and other items or look them up. Once complete, print out the statement and attach the back-up information for reference.
Lastly, store this document in a reference file folder called “Net Worth”. Each year, you can refer back to it and see the changes. It’s also a valuable document to take when meeting with your financial advisor to update your financial status.