Once a year, I analyze our net worth to get a current picture of our financial position. To keep things simple, I don't include the value of autos or personal property. I use information from end-of-year statements and assessed values for real estate.

At the moment, fluctuations in our net worth do not have a significant impact on our lives. It helps that we live below our means and our income provides for our needs. In the future we will need to use assets to generate some income, but for now we are able to hold off. For example, we will draw from our assets if our pensions fail to keep pace with inflation (likely) or some other unexpected life event requires it. At 70 1/2 we will begin the mandatory Required Minimum Distributions from the tax-sheltered accounts.

Now that I've completed our net worth analysis for 2008, I know my goal of increasing our net worth by 5% in 2009 is very ambitious (see sidebar). Factors that could help: if real estate values bottom out and interest rates start to creep up... both possible, albeit not likely until the latter part of 2009, if at all. So we will see how things stand a year from now. Check out the page on my sidebar for my 2008 Net Worth Analysis if you are interested.

If you're curious how your own net worth stacks up against others your age and income bracket, use this