Now let’s pull your retirement assets together. We’ll combine step 1, our employer asset accounts and step 2, our liquid retirement assets to total our investments and assets. Next, we will add in step 3, our non-liquid assets. This creates the asset (or what we own) side of our retirement balance sheet. Let’s get started.
Assets, Assets Everywhere
Create a spreadsheet or you can download the Retirement Balance Sheet Tracker (below) for free. I like to check my account balances at least yearly, so I left columns to track future years.
Below is an example of the asset tab in the Retirement Balance Sheet Tracker. In this example, Mary has $352,163 in assets for her retirement. The majority of her retirement nest egg is in her 401ks.
Retirement Balance Sheet
If you downloaded the free Retirement Balance Sheet Tracker, the third tab of the spreadsheet is the balance sheet tab. Formulas have been entered to automatically pull your totals in column C (first period that you are tracking) into the Asset portion. If you are using your own spreadsheet, then create the asset section of the balance sheet similar to the example below.
You may not want to include everything in your retirement balance sheet. For example, Mary has $2,189 in a 529 College Savings account for her children. She may not want to include this amount since her children will use it. In that case, she should zero out that amount in the balance sheet. She may still want to track the 529 Plan balance on the first tab (Assets) to see the account balance grow.
Present Value of Non-Liquid Retirement Assets
In this section of your retirement balance sheet, you are going to record the present or current value of your non-liquid assets. For example you may have bought your home for $150,000 but it is currently worth $200,000, then you will record $200,000 under your primary residence. The same with your other assets like rental properties or your car. You will record your loan balance (how much you owe) in the debt section when we get to it.
The spreadsheet will automatically calculate your total assets. In this example, Mary’s total assets equal $712,163 including her employer accounts, liquid assets and non-liquid assets.
Whew!!! You made it. Nice Job! You now have the asset portion of your retirement balance sheet complete. Next, we will tackle our debts.