Take all your cash, investment assets and investment properties then subtract all your debt, except the mortgage on your primary house. Done.
Now lots of people will be up in arms. What about my house, my car, etc. Let’s discuss.
Assuming you're living in your house then you won’t be earning any money off of it in your retirement. Unless you are planning to reverse mortgage it at exactly the right time so you die when the balance runs out. But that's unlikely. So we’re more conservative.
A car is basically a block of cheese. Once you buy it, it’s harder to resell for the same amount and you’ll likely use most of it before you sell it.
BUT WHAT ABOUT MY RADIO, COMIC... COLLECTION?
If it’s worth a ton, sell it! What’s the point of having a collection worth a ton when you’re not retired. Then you can include the cash proceeds in your net worth.
How Do You Compare?
Average Retirement Savings by Age
Source: Vanguard, How America Saves 2014.
If you're ahead of the game congrats! If not, don't worry, we'll get you there.