Some of the variables which play a role in determining an investor's financial circumstance are: income from labour, living expenses, investment savings, tax, borrowings, and the possession of assets. In this article, the role contribution of each of these variables to an investor's net monetary worth is analysed. The analysis is applied to two specific possible events in an investor's experience, namely, retirement, and the sale of a business. By coupling these two events, the analysis will help to answer two questions: 1. What minimum net monetary worth will enable an investor to retire? And 2. How do the abovementioned variables govern a buy-sell transaction of a business in which both the seller's and the buyer's interests are accounted for?

Download PDF networth.pdf (233 KB)