The NAV is the dollar value of one share of a fund. It’s calculated by totaling the value of all the fund's holdings plus money waiting investment, subtracting operating expenses, and dividing by the number of outstanding shares. A fund’s NAV changes regularly, though day-to-day variations are usually small.
The NAV is the price per share an open-end mutual fund pays when you redeem, or sell back, your shares. With no-load mutual funds, the NAV and the offering price, or what you pay to buy a share, are the same. With front-load funds, the offering price is the sum of the NAV and the sales charge per share and is sometimes known as the maximum offering price (MOP).
The NAV of an exchange traded fund (ETF) or a closed-end mutual fund may be higher or lower than the market price of a share of the fund. With ETF, though, the difference is usually quite small because of a unique mechanism that allows institutional investors to buy or redeem large blocks of shares at the NAV with in-kind baskets of the fund's stocks.
A corporation's net worth is the retained earnings, or the amount left after dividends are paid, plus the money in its capital accounts, minus all of its short- and long-term debt. Its net worth is reported in the corporation's 10-K filing and annual report. Net worth may also be called shareholder equity, and it’s one of the factors you consider in evaluating a company in which you’re considering an investment.
To figure your own net worth, you add the value of the assets you own, including but not limited to cash, securities, personal property, real estate, and retirement accounts, and subtract your liabilities, or what you owe in loans and other obligations. If your assets are larger than your liabilities, you have a positive net worth. But if your liabilities outweigh your assets, you have a negative net worth. When you apply for a loan, potential lenders may want to see your net worth statement.
A nonqualified annuity is a retirement savings product you purchase on your own, outside of either a qualified retirement plan offered through an employer or an IRA. You pay the premiums of a nonqualified annuity with after-tax dollars. However, as with a qualified annuity, any earnings in a nonqualified annuity accumulate tax deferred.
A nonqualified annuity also allows you to invest more than the annual limit imposed on qualified plans and gives you the flexibility to contribute unearned income. That means you can fund the annuity by contributing money you inherit, receive as a lump sum, or realize from your investments.
Further, there are no federally mandated distributions, so you can begin receiving income from your nonqualified annuity on your own schedule once you are at least 59 1/2. You can also delay taking income until you need it, subject to the terms of your contract.