When you think about your financial future, you probably imagine the sum of your savings, investments, and housing equity, minus your debt. That’s your net worth. But here is the problem. That number is only part of the story.
Net assets are widely used financial metrics, but they are also limited in meters. It underestimates assets and guarantees guarantees that provide true long-term financial stability. If you don’t include Social Security, Medicare, potential inheritance, or other non-acquired but liquid-free benefits, you’re underestimating what your future will look like.
Traditional net assets omit valuable resources
Net assets calculations are usually simple.
- assets: Cash, savings, investment accounts, retirement funds, real estate, and business profits.
- liabilities: Mortgages, credit card balances, student loans, and other obligations.
That math gives you a snapshot of yours the current Financial status. But it excludes some of the most economically important resources – you future Profit and income flow.
These often overlooked assets include:
- social security
- Medicare and Medicaid
- pension
- Potential inheritance
- Employer Equity Grants or RSUs
- Life insurance
- Spouse benefits or assets
These aren’t “expendable” today, but they may be worth hundreds of thousands, or even millions, over your lifetime.
Net worth: Too much used and incomplete
Net worth is used everywhere as a personal scoreboard, retirement preparation test, or as a way to compare yourself to others. But it was never designed to measure Future financial security. This will not come to support you over the next 20-30 years, but will tell you what’s in your portfolio.
By focusing solely on assets and liabilities today, net worth does not reduce your true financial flexibility. Guaranteed income and healthcare protections that reduce the amount needed to save or spend are excluded. It’s not just misleading. It allows people to work longer, save more money, or delay retirement unnecessarily.
Use the Boldin Retirement Planner to track your net worth over time. Check out today’s net worth, retirement, longevity and in the meantime, your net worth every year.
Why are hidden assets removed from the net worth calculation?
Most of these resources are excluded from traditional net worth calculations as they are not liquid or are not directly owned.
- social security is the monthly income flow and is not a balance that can be withdrawn.
- Medicare and Medicaid Don’t show up in your account, but it will significantly reduce your future healthcare costs.
- Inheritance Both timing and quantity are uncertain, even if it is likely.
- pension You cannot be entitled or guaranteed until you retire.
- The advantages of a spouse It may depend on future choices or eligibility.
These are not technically “assets” on the balance sheet, but they work perfectly as financial support. Ignoring them means missing the big picture.
Note: Tools like the Boldin Retirement Planner help you to surface these hidden strengths, allowing you to make smarter and more confident decisions based on the big picture, not just the balance of your account.
What would you do if you count everything?
Let’s see how much these hidden assets can add to a typical 60 year old child Net assetsuse three scenarios. low, Mediumand expensive Bonus case.
social security
- Low case (Early Billing, $1,500/month): ~$250,000
- Medium case ($2,500/month at full retirement age): ~$450,000
- High case (Collation delay, $4,000/month): ~$700,000+
Medicare and Medicaid
- Low case (Minimum Healthcare Use): ~$100,000
- Medium case (Standard Medicare Use): ~$300,000
- High case (Medicaid-funded long-term care + Medicare): ~$600,000 +
Pension (if you have)
- Low case ($1,000/mo): ~$200,000
- Medium case ($2,500/mo): ~$500,000
- High case ($5,000/mo): ~$1 million+
Inheritance (potential)
It’s difficult to predict, but Over 70% of the baby boomer generation and XERS XERS Expect to receive some inheritances. This is a rough breakdown:
- Low case (Slack inheritance): ~$50,000
- Medium case (from parents with home equity and retirement accounts): ~$200,000
- High case (Multi-property, investment property): Over $500,000
Please note: Inheritance timing and taxes vary widely.
Other hidden assets
- Employer Stock Options or RSU: Over $50,000 to $500,000
- Spousal pension or social security: 100,000-1 million dollars
- Cash-worthy life insurance: $10,000 to $100,000
Boldin’s Perspective: Model future Net assets
Boldin helps people plan by using broader, more realistic definitions of wealth, including these future benefits. Tools like Boldin Planner Emerging these “invisible” resources allows you to confidently model different retirement ages, spending scenarios, and life choices.
your Authentic Financial strength is not just what you own today. It’s about what you can access tomorrow. Don’t let narrow numbers stop you from looking at the big picture.
