Is Your Net Worth Greater Than You Think?Know Your Net Worth
What is Net Worth?
Includes what you may owe on your assets and other debts, such as a mortgage, car and student loans, and credit card debt.
Includes cash, investments such as IRAs, 401k accounts, other retirement accounts, bonds, and stocks, your home and other valuables such as your vehicles and jewelry.
Simply put, net worth illustrates the amount in cash you would have left over after selling all of your assets to pay your liabilities, providing a measure of your overall financial health and stability. Your net worth can either be negative or positive.
Why Knowing Your Net Worth Matters
Compare yourself to others - track your progress as compared to the average net worth for your age or income bracket.
Median US Household Net Worth
As shown in this chart, the median US household net worth is not sufficient for most investors to realize a comfortable retirement. Net worth peaks at retirement age for those 65+ since house and property values may account for the majority of the net worth calculation. For younger age brackets, net worth is impacted by holding significant debt such as a mortgage and student loans, along with lower salaries and assets, but over time these investments may result in higher net worth households.
Having multiple investments and income streams is a good thing, but keeping track is a major pain point for most investors. Using the Personal Capital dashboard will help you to quickly access a consolidated view of all your accounts in one place. Each time you log into the dashboard, on desktop or mobile, you’ll see a complete view of your net worth. Over time, you’ll see if your net worth is trending positively and take steps to make adjustments in your spending and savings habits
Monitoring your net worth is a sound strategy for avoiding the tendency of less experienced investors to focus on the daily fluctuations in market performance. Using the Personal Capital dashboard to track your net worth, you are no longer held hostage by market volatility.
Tracking your net worth will highlight your debt situation and help put these liabilities into focus. Discover how carrying debt can erode your retirement savings and how hidden account fees can accumulate to cost you years off your retirement.
Track Your Portfolio Performance
It’s important to know how your net worth is changing over time, so you can meet your long- and short-term financial goals.
Learn how individual investments are performing, or review your entire portfolio at once. View performance by month, year or over the lifetime of your accounts with our easy-to-use portfolio tracking tools.
Want more information about following your portfolio?