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

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Asked by Jen Kho

Asked on 11 Aug 2018

Do you calculate your net worth before you invest?

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

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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