How to Calculate Retirement Income for Net Worth
Your net worth compares your assets and liabilities -- the worth of your cash and your possessions versus the amount of money that you owe. If you have a positive net worth, consider investing some of the excess; if you have a negative net worth, investigate how to reduce your liabilities. Calculate your net worth once a year to help determine your financial goals for the year. You can include retirement accounts, if you have them, among your assets.
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Instructions
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Check with your plan supervisor to find out how much your retirement accounts would be worth if you quit your job today. Use this figure as your retirement income.
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If you have more than one retirement account, add the amounts that each account would be worth to determine your entire retirement income.
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Add your retirement income to other assets, such as your savings accounts and the values of your home and vehicle. Add all liabilities -- debts and current bills -- and subtract the sum from your total assets to determine your net worth.
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