Figuring Out Your Total Net Worth
Part of creating an estate plan that encompasses all your needs is knowing exactly what assets you own and their value. Calculating your net worth is important so that you can better plan out how you will pass on those assets to your beneficiaries.
The following is a quick overview of the steps you should take to determine your total net worth:
- Add up bank account values: Check the most recent statements you have for all your bank accounts, including checking and savings accounts, money markets and CDs. Add up these values.
- Add up investment accounts: Look at the most recent statements for all your investment accounts that are not retirement plans, and add up their values.
- Add values of stocks and bonds: If you have any stocks in publicly traded companies, estimate the value of their shares by looking at the most recent value per share, and add up all those total values.
- Add values of personal effects: For some personal items, you might need the assistance of a professional appraiser. Add up the value of all the personal items you own, particularly the more valuable assets.
- Add up life insurance values: Any life insurance policies you own will also go into your total net worth. Add up their total cash values.
- Add retirement accounts: Add up the values of all your retirement accounts, including IRAs and 401(k)s.
- Add business interests: If you have interests in any type of businesses, you should be sure to add those into your calculations.
- Add outstanding debts: If you have any money owed to you, you should include those totals in your calculations.
- Add real estate values: If you own any real property, add the values of those properties into your calculations.
Your net worth will be the sum of all these numbers, minus any liabilities.
For further guidance on calculating your net worth, speak with an experienced Tampa estate planning lawyer at BaumannKangas Estate Law.