Determining net worth for retirement is a crucial step for planning a secure financial future. Net worth, defined as the difference between assets and liabilities, provides a snapshot of one’s overall financial health.
Calculating net worth is essential because it enables individuals to: assess their current financial situation, set realistic retirement goals, identify areas for improvement, and make informed decisions about investments and spending habits. Historically, financial planning has emphasized the importance of accumulating assets and reducing liabilities to enhance net worth.