Planning for your retirement is like planning a trip - you must
know where you are now before you can determine the best route to
reach your destination.
The process of gathering information relative to your current
financial situation is one of the most important steps in planning
for your retirement. Identify all current assets, both liquid and
non-liquid, as well as all current and future real and contingent
liabilities. College expenses as well as anticipated major
purchases such as automobiles and home repairs should be
considered.
The end result of this process should be a realistic net-worth
statement that will give you a foundation that will serve as a
basis for your future financial value projections.