(above).Interpret the future net worth chart
Tip: For easier reading, click (above).
This graph shows a forecast of your net worth. Net worth means your total assets minus your total liabilities (that is, what you have minus what you owe).
Assets include both liquid and non-liquid assets. Examples of liquid assets are retirement accounts, bank accounts, taxable investments, and stock options. You can enter liquid asset accounts in the Savings & Investments place (in the Lifetime Planner). Examples of non-liquid assets are homes and businesses. You enter these things in the Homes & Assets place (in the Lifetime Planner).
Liabilities include your long-term loans, such as a mortgage on your home. You can enter loans in the Loans & Debt place (in the Lifetime Planner). Short-term liabilities, such as credit card debt you've entered in your Debt Reduction Plan, are not included here.
Generally, you can expect your net worth to increase prior to retirement as you pay off loans, you contribute to your savings, your savings grow, and the value of your non-liquid assets (such as your home) appreciate. You can expect your net worth to decrease during retirement when you begin living off the money you've saved.
If you have any net worth left over at the end of your lifetime plan, that money will be available for your heirs and for paying estate taxes to the government.
How do I enter a new savings contribution in Savings & Investments?
How do I add a new investment account in Savings & Investments?
How do I add a house in Homes & Assets?
How do I add another type of asset in Homes & Assets?