facebookDo you calculate your net worth before you invest? - Seedly

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Jen Kho

Jen Kho

Level 3

18 Apr 2019

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Do you calculate your net worth before you invest?

Discussion (1)

What are your thoughts?

Tan Siak Lim

Tan Siak Lim

17 Aug 2018

Level 7ยทCFP. Director, Financial Advisory Group at Financial Alliance

If you are just doing investing to make some money, then it is not necessary.

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However, if you are investing for a specific objective, say retirement planning or children education planning, then knowing your networth is very important. Only with infomation on your goal and your networth can you determine your RRR(required rate of return), after also factoring in inflation. With that information, you need to structure a portoflio that can be expected that achieve that return, at the same time with a risk that you can emotionally tolerate. Else, you will be investing blindly.

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