1. What is the Global Wealth Index?

The Global Wealth Index (GWI) is a comprehensive measure of an individual's or household's total wealth across different asset categories. It provides a standardized way to assess and compare wealth across different regions and demographics.

2. How Does the Calculator Work?

The calculator uses the GWI formula:

Where:

• \( Personal \) — Personal assets and savings
• \( Real Estate \) — Value of owned properties
• \( Business \) — Value of business interests
• \( Investment \) — Investment portfolio value
• \( Other \) — Other valuable assets

Explanation: The index averages the value across five major wealth categories to provide a balanced view of total wealth.

3. Importance of GWI Calculation

Details: The GWI helps individuals and financial advisors understand wealth distribution, identify areas for improvement, and make informed financial decisions.

4. Using the Calculator

Tips: Enter dollar values for each wealth category. The calculator will compute the average index value. All values must be non-negative.

5. Frequently Asked Questions (FAQ)

Q1: What's considered a good GWI score?
A: GWI interpretation depends on location and life stage, but generally higher values indicate greater wealth.

Q2: How often should I calculate my GWI?
A: Recommended annually or whenever significant financial changes occur.

Q3: Should I include retirement accounts?
A: Yes, retirement accounts should be included in either Personal or Investment categories.

Q4: What about liabilities/debts?
A: This calculator focuses on gross assets. For net worth, subtract liabilities from each category.

Q5: Can businesses use this index?
A: While designed for individuals, businesses can adapt it to assess corporate asset distribution.