Calculate your net worth with DeLauretis Wealth Management

What are you worth?

It’s time for a Personal Financial Year End Tabulation!

Every year, members of our firm like to do what is called a Personal Financial Year End Tabulation. Described another way, we each like to calculate how we have personally done financially this year. One tool that we often use not only for ourselves, but for our clients overall wealth management to help them determine their current financial position is the Net Worth Statement – also known as the Balance Sheet in the accounting world.

The Net Worth Statement is a simple financial document that lists all your assets such as:

  • Your home
  • Recreational/second properties
  • Holdings in your RRSP, TFSA, and Non-registered investments,
  • Cash in banking accounts and cash values within life insurance policies
  • Vehicles/other transportations
  • Additional Real estate
  • Business ownership/partnership values
  • Digital Assets of value such as URL’s, Gaming assets, Digital Wallets/Coins
  • Monetarily valuable collectible etc.

It subtracts all your liabilities such as:

  • Mortgages
  • Lines of credits & Home equity loans
  • Credit cards
  • Student loans
  • Home Buyers Plan/Life Long Learning Plan balances
  • CRA Balance owing
  • and other personal loans etc.

After subtracting the liabilities from your assets, your end result is called your Net Worth.

While it can be debated as to what should and should not be included in the net worth statement, as a general rule, only include items that you would expect to convert to cash, or that you are investing in for the intent of profit or sale in the future. We avoid including items of sentimental value, as we would not want to convert these to cash. We also do not include furniture or personal effects. By all means, if you are a collector of unique stamps, valuable antiques or jewelry, distinguished wines, include them as assets. Just be realistic of their value, lean toward conservative values and do not forget to properly depreciate any of those depreciable assets (such as vehicles and motorized toys) that you may want to include.

Your net worth statement will provide you with a financial snapshot of where you stand financially at year end. By completing this valuable exercise year after year, you will be able to track your progress, and determine if you are closer to achieving your personal financial goals you have set. And if not, Why? What can be changed?

Being a client of DeLauretis Wealth Management Inc., we do the tracking for you and review this with you during our annual meetings. We will help you implement changes and new solutions to keep you on track to your wealth goals.

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