How to do an asset inventory
By Tyrone Mitchell

Do you know the value of all your assets? Do you know how to calculate your net worth?

It may be surprising to learn that many people haven’t taken an inventory of all their assets. With recent changes in federal estate tax laws, some may think it is no longer important to take such an inventory. But the purpose of estate planning is not merely to minimize taxes, it is also to ensure that your assets are disposed in the manner you wish.

Calculating your net worth is also an important first step in constructing your financial plan. How can you plan for the future without knowing where you are now?

If you don’t know your net worth, it may be time to itemize your assets and liabilities and estimate their fair market value. Complete a balance sheet that includes all of your assets (financial assets, retirements benefits, real estate, and personal property) as well as your liabilities (mortgages, loans, credit cards) to calculate your net worth.

If you are preparing your net-worth statement as part of your estate-planning process, you need to consider some further details:

• How much you own, as well as how you own it (jointly, individually, in partnership);

• The current value of your assets, as well as the projected future value.

• The value of your business assets, as well as your personal assets.

For more information about preparing an asset inventory for planning purposes, contact your financial, tax, or legal advisor.

Editor's note: Go to the BONUS articles at www.ChiroEco.com/history to download a net-worth asset calculation sheet.

Tyrone Mitchell offers securities through AXA Advisors, LLC (member NASD, SIPC), 155 Pinelawn Road, Melville, New York 11747, and offers annuity and insurance products through an insurance brokerage affiliate, AXA Network, LLC, and its subsidiaries.