In an emergency move Sunday, the Federal Reserve announced it is dropping its benchmark interest rate to zero and launching a new round of quantitative easing.
The QE program will entail $700 billion worth of asset purchases entailing Treasurys and mortgage-backed securities.
Markets responded negatively, with Dow futures pointing to a drop of 900 points when the market opens Monday morning.
The Dow Jones Industrial Average is only about 2% from a record high, but confidence is hard to come by when wealthy investors are asked about the future direction for the market. The percentage of the affluent investors who expect a stock market decline to be booked in the fourth quarter has doubled, according to a survey conducted by E-Trade Financial this month.
Read MoreHow much you’ll need to invest each month to retire with $3 million at age 20, 30, 40 and beyond
Read MoreMicrosoft founder Bill Gates takes an aggressive approach to investing, with 60% of his assets invested in equities.
Gates added $16 billion to his net worth this year, despite giving away over $35 billion to charity, according to Bloomberg.
After Jeff Bezos, Gates is the world’s richest person, with total wealth of $106 billion.
Even if you don’t fly in first class or summer in the Hamptons, this simple equation is an important tool that says a lot about your financial health. Still, most people don’t bother to calculate it. That’s a mistake.
“It’s the first snapshot into an overall look at your finances,” said Michael LaRiviere, a certified financial planner at Essex Financial in Connecticut.
Subtract what you owe from what you own to determine your net worth.
That will give you a good picture of your financial health.
If your net worth is in the red, don’t panic.
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