Net investable assets (NIA) include all of your savings and investments less consumer debt, which includes your credit card debt and outstanding loans other than the mortgage on your home. By using NIAs to calculate your wealth, you see a more accurate picture of your financial independence – you know how much money you have without selling your home and car. To determine your wealth based on NIAs, add up the following:
- Funds in bank accounts
- Retirement account balances
- Mutual funds
- Stocks
- Bonds
- Certificates of Deposit
- Cash value of insurance contracts
- Value of any properties owned other than your primary residence
After calculating your total in assets, subtract any debt you have including credit card debt and loans, other than the mortgage on your primary residence. The remaining balance represents your net investable assets.
