Know your financial assets

Have you ever wondered how much you had in terms of financial assets? Are your asset values more than the loan & credit facilities? Do you keep track of their current values? Once you know your financial position, you can work towards accumulating wealth for your retirement. So knowing the financial assets is the first step to retirement planning. It takes discipline and time to track these assets and it will be a worthwhile exercise.

The various financial assets could be in the list below, depending on your circumstances.

Assets

Cash and Deposits

Own Business net equity fund

Shares

Bonds

Unit Trusts

Foreign Currency Accounts

Gold and Commodities

Arts and Antiques

Insurance

          Single Premium (investment + protection)

          Life and endowment policies (with cash surrender values)

Property Value (Live in property and investment property)

Car Value

CPF balances (subject to withdrawal rules)

          Ordinary Account

          Special Account

          Medisave Account

Supplementary Retirement Scheme balance (subject to withdrawal rules)

Less:

Liabilities

Outstanding mortgage loan on the property

CPF utilised + accrued interest on the property

Hire purchase loan on car

Credit card facility

Other loans

= Net Assets

Note that the property value could be in the negative after deducting the mortgage loan and CPF utilised. Similarly, car value could be negative in value.

The value of each asset is estimated at the time of compilation, e.g share value at a particular date.  There is a need to revalue at periodic interval to see your financial position over time, e.g. quarterly. In the case of shares and unit trusts investments, you may want to actively watch their values so that you can react at the appropriate time in order not to suffer permanent diminution in values. 

Written on 10/25/2006 11:06 AM

Copyright © 2006, the author known as LKT in Singapore.

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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