What’s Your Net Worth?

By The Lerner Group on March 15, 2021

The net worth statement (NWS) is the most important tool and your starting point for understanding and coordinating your assets.

A net worth statement is a snapshot in time with a one-page overview of your assets and liabilities (debt). This sheet will include items like your retirement assets, taxable assets, real estate (both residential and investment properties), insurance policies, and private investments. The goal is to get a clear understanding of all your holdings on one page.

The Importance of a Net Worth Statement

The net worth statement gives families two big advantages:

1. Comprehensive Overview: It shows you all the information on one page, everything you own minus anything you owe, to get a final net worth number. This number will give guidance to estate planning strategies to benefit the overall family.
2. Better Coordination: It allows for better coordination of all your assets, giving you and your advisor the opportunity to take a unified approach to items like allocation of assets, titling of holdings, and location.

Key Statistics and Facts

• Average Net Worth: As of 2025, the average net worth of U.S. households is projected to be approximately $1.1 million, while the median net worth is around $300,000.[1]
• Wealth Distribution: The top 1% of U.S. households have a net worth of $11.6 million or more, while the top 10% have at least $970,900. Knowing your net worth can help you understand your financial position relative to others.[2]
• Financial Planning: A net worth statement is crucial for personal financial planning, loan applications, retirement planning, and investment management. It helps individuals set realistic financial goals and make informed decisions about spending, saving, and investing.

The Risk of Not Having a NWS

The risk of not having a NWS is that sometimes we forget where our assets are held. You might have an account here, another there, and before you know it, you can’t keep track! You’re probably thinking, “that can’t be possible, how can you lose track of your money?” If you think about it, a 401(k) is an asset, and often when you switch jobs, you run the risk of losing track during your transition. If it were included in your NWS, the risk is minimized because you’re tracking it.

Simplifying Financial Management

The net worth statement is a snapshot of a family’s most essential information to help avoid as many risks as possible. Behind the scenes, we delve into the details and carefully analyze what the whole picture looks like. But we strive for simplicity and transparency to help ensure that families understand their estate and avoid any unnecessary burdens.

[1] https://umatechnology.org/u-s-net-worth-statistics-the-state-of-wealth-in-2025/#google_vignette

[2] https://www.kiplinger.com/personal-finance/605075/are-you-rich