Knowledge hub

What’s your net worth, really?

Back to insights

By Capital Partners Wealth Planning

You could quite easily calculate your net worth by adding up your banking and investment accounts and then deducting any debt.

But really, that number reflects wealth. Worth is more complex.

So what’s your true net worth?

This is a tough question, with a lot of moving parts. It’s an interesting one to talk over with your financial planner (or, a great reason to find one). It can be a conversation about deepening the connection between your life and your money…Making sure they are working together to meet your goals.

It starts with what’s important to you.

  • What are your goals?
  • Which are your most important relationships?
  • What are your values?

Everyone is different, so will answer differently.

Once you work out the answers to the above for you, your planner can help build a plan that gives you the best shot of reaching those goals. It can even help you think through a range of possible outcomes…Preparing for the worst, and hoping for the best. Because life happens. You’ll go through transitions that will mean you need to adjust your plan.

A financial plan is a lot more than just buying and selling stocks. It’s about finding ways to connect individual financial goals to life goals over the long term. It’s about a highly personalised planning service to give you clarity, confidence and control over your life decisions. Because no two investors are alike. Above all, it should value not just wealth, but also worth.

Dealing with uncertainty and life’s surprises is an important part of this (because this affects everyone). The difference is, some of us are better at handling uncertainty than others. You might not land the business deal you were hoping to, but that might lead to an unexpected opportunity. You might marry and start a family, but later divorce. Any one of these experiences will likely change your goals or require you to adjust your plan.

Investing, just like life, is complex and full of uncertainty. Dimensional Fund Advisors apply insights from financial science. This was made possible in the 1960s, when researchers gained access to data they could use to test their hypotheses. This was huge. This doesn’t mean we can predict what was going to happen with the stock market. But, our relationship with them gives us unique insights into developing strategies… all to give you the best chance of meeting your investing goals.

That’s over the long term. Over the short term, our goal is to lower your anxiety and help you feel better about your life right now…So you can spend more time with loved ones, and focus on what you value.

People are naturally concerned about their financial life management. But maybe more so about the financial future of the people they’ll leave behind. Legacy is a big part of net worth. What kind of memories are you going to leave with the people you care about?

You don’t have to deal with these tough questions alone. Make time for that really important conversation with your financial planner. Tell them what really matters to you.

It could change your life.

This article was written by Sam Instone with permission to publish.

The information provided on this site is of a general nature only and may not be relevant to your particular circumstances. The circumstances of each investor are different and you should seek advice from a financial planner who can consider if these strategies and products are right for you.

Ideas & insights

Knowledge Hub

Bonus | Steven Boyce on what makes a successful business owner


Kathryn Creasy wins Financial Planner of the Year in Women in Wealth Awards

Capital Partners News • Article

The influence of reality TV stars on financial decisions

Wealth Planning • Article