Time of year to take stock of personal financial position

2015 is fast approaching to an end. It is time to take stock of personal financial assets. Do you know how much you have? What are the market values of these assets? What is the net increase/decrease when compared with last year (2014)?

This blog post excludes real assets such as real estate, motor vehicle, physical gold, art collections, etc.

Consider the following when compiling your personal financial position.

  1. CPF balances (OA, SA, MA, RA)
  2. SRS investments and un-invested cash in SRS (Supplementary Retirement Scheme)
  3. CDP – cash invested in Stock Exchange
  4. Banks – cash accounts, fixed deposits, structured deposits
  5. Cash invested in unit trusts, Investment-linked insurance policies (ILP), Singapore Savings Bonds, etc
  6. Others (e.g. annuity plans)

For each item, you should have the actual amount invested (at Cost). Determine the market value of these items. By doing this, you can decide on the action plan in the future: to either hold, sell, or add some more.

Take a sum of the total costs of all these items. Compare this amount with last year total costs. Net increase consists of amount received less amounts used in the year. Net decrease is where amounts used were higher than amounts received.

It is also good if one can list all insurance policies taken up. Set up a separate spreadsheet to record each insurance product, e.g. whole life policy, term policy, Medishield Integrated Plan, home insurance, etc. At least, you have all insurance details in one spreadsheet. In this way, you would not lose sight of these policies, such as premium to pay, bonus accumulated.

Once you have started the record keeping, subsequent updates for a New Year would be easier.

Copyright © 2015, limkimtong for Living Investment

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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