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Net Position
Definition
Net position is the difference between what you own and what you owe, synonymous with net worth in personal finance.
Explanation
Net position can refer to an individual's net worth, a company's equity, or an investment account's value after margin debt. A positive net position means assets exceed liabilities. Tracking your net position over time is the most comprehensive measure of financial progress.
Financial advisors recommend annual net position calculations to monitor progress toward long-term goals.
Example
A retiree with $800,000 in retirement accounts and a paid-off $300,000 home has a net position of $1.1 million.