(Approximately Age 20’s-30’s 8%-50%, Age 40’s-50’s 32%-74%, Age 60’s-70’s 66%-82% of your liabilities & net worth)
Your financial health score is based on your current financial position. InvestorKeep examines your assets, liabilities, and total net worth to determine your overall financial health. Your financial health score helps aid discussions with your financial professional regarding the health of your financial situation and how to develop a plan to get your finances where you want them to be. The last area of focus in our six part, blog series is your net worth.
Just a quick recap of the main areas to access your financial health:
1. Cash Assets
2. Investment Assets
3. Personal Assets
4. Current Liabilities
5. Long Term Liabilities
6. Net Worth
Net worth is your liabilities subtracted from your assets. It can be positive or negative (negative net worth is normal when you’re younger). It will rise and fall over the course of your lifetime and career. What’s important is: knowing why (and how) it is impacting your long-term financial plans.