2
Determining Your Net Worth
from InvestmentCare.com
Before you make any type of investment, it is important to first determine your net worth, which can become the basis for many other decisions that you may encounter during the investment making process. Your net worth is important because it will help determine which types of investments are most suitable for your individual needs, and what level of risk and time horizon may be most suitable for your current financial situation. To calculate your net worth, you may use the following guideline and calculation provided below:
The following is a list and classification of Assets when calculating your net worth:
Cash in Bank Accounts
• Checking Accounts
• Savings Accounts
• Money Market Accounts
Cash Equivalents
• Annuities
• Life Insurance (cash value)
Investment Products
• Market Value of Stocks
• Market Value of Bonds
• Market Value of Mutual Funds, etc.
Real Estate
• Market Value of Residence less mortgage debt
Property
• Automobile(s)
• Furniture
• Jewelry, collectibles, etc.
• • Other misc. equipment of value
Retirement Accounts
• Market Value of IRA
• Market Value of 401(k) Plan
• Market Value of SEP, KEOGH, etc.
The following is a list and classification of Liabilities when calculating your net worth:
Total Revolving Credit
• Credit Card debt
• Lines of Credit
Household Liabilities
• Monthly Mortgage/Rent payment
• 1st Mortgage balance
• 2nd or other Mortgage on Residence
• Outstanding Property Taxes
Other Misc. Liabilities
• Total Balance on Student Loans
• Child Support Payments, etc.
Total Installment Loans
• Automobile Loans
• Personal Loans
• Other Monthly Payment Loans
0 التعليقات:
إرسال تعليق