What's Your Net Worth: How to Calculate Your Assets

You likely often hear the term "net worth" associated with high profile celebrities, and others who are well known all across the world. However, essentially everybody has a net worth, and sometimes, the finalized number can be quite a surprise. Calculating your net worth can help you get a realistic idea about your financial standing so you can make more sound decisions concerning your finances.
If you have access to your insurance policies, financial accounts, and other related information, you can easily calculate your assets. Use this guide as a starting point for getting a quick snapshot of your financial standing.

Add Up Your Cash

Adding your cash is as easy as it sounds. Cash refers to all physical currency that is currently in your possession. For example, the money in your wallet, the change in your coin jar, and the even the pennies in your couch are all physical currency that you own. If you have foreign currency, be sure to factor that in as well. You might need to use a conversion tool to find out its value in US dollars.

Examine Your Accounts

The accounts you analyze won't be merely limited to checking or savings accounts. You'll want to look into your money market accounts, CDs (certificates of deposit), IRAs, 401k earnings, mutual funds, bonds, and stocks. Any account you have that has a current monetary worth should be counted when looking into your accounts. You can check online to get a good idea of your accounts interest.

Factor in Real Estate

Regardless of whether you have a mortgage on your property or not, you should calculate the estate's current market value. Practically any properties you own, including land, should be added in. 

Add Your Insurance Policy

Life insurance has a cash value on it, and this particular value is determined when the policy is initially taken out. An insurance broker can help you calculate the value of your insurance policy if you're not immediately sure about it. Don't guess at how much you have; find out the exact value by either looking into your account or contacting your insurance company.

Determine the Worth of Your Possessions

This is where calculating your assets can get slightly tricky. You likely own lots of valuable possessions, but you aren't sure what their true worth really is. Find out the money market value of possessions such as collectibles, jewelry, antiques, and furniture. Motor vehicles should also be factored in by their blue book value; be sure to include motorcycles, RVs, boats, etc. If you're having trouble determining the worth of a certain possession, consider having it appraised by a professional.

Calculate Money Owed

If you are owed a debt that can be expected to be paid back, you can count the money owed towards your assets. For example, if you loaned a friend $200 to pay their electric bill, and they promised to return the full amount to you within two weeks, you could count this as an asset. However, money you've given to others that hasn't been paid back within a reasonable amount of time shouldn't be counted.

Subtract Debts

The value of your net worth quite simply comes down to the numerical amount left over when debts have been subtracted from assets. Debts you should consider subtracting from your assets include amounts left owed on any mortgages, student loans, credit card debts, home equity loans, and automobile loans. To calculate the magical number, subtract the amount totaled from your debts from your total value of assets.

After the age of 18, virtually everyone should have an idea of their net worth. According to Edmonton insurance brokers at Drayden Insurance Ltd, calculating your net worth is not only about knowing where you stand with your finances, but also developing a plan for your future.

How to Save Money When Buying a New Car

Nothing beats being prepared and doing your homework no matter what the situation. When purchasing a new car it is extremely important to head into the transaction fully prepared. Car dealerships are in business to sell cars and make a profit. Otherwise there is no point to being in business. And most companies exact a reasonable profit from every sale and customers get a fair deal. But in those instances were a dealership is trying to get a little too much profit or take advantage during a deal, consumers should be privy to a few common loopholes in the car buying game.

Price and compare

If you don’t care about the price, why should a dealer? Perusing the inventories of several similar brands offering similar features keeps options open when discussing price. After doing an online investigation to determine which makes are most appealing, it is time to visit the dealers and see what local offers are being made. Dealerships like Tischer Auto offer price comparisons that can be made under one roof. Some dealerships may only sell one new brand at a location, but can check with partner dealerships to help compare prices.

Stick to the basics

Anymore, car makers are in competition with their factory warranties that outlast the life of most vehicles. So why pay for an additional dealer warranty? The dealer package, including warranties and undercoating and extra protections are a classic scheme to get more money rolled into the monthly payment, costing the buyer more in interest throughout the life of the loan. If a dealer add-on package is attractive, it should be paid for separately in cash.

Trade in tactics

Offering up your old car as a trade in is a standard practice. But negotiate the new car purchase price before mention of the trade in. This creates two separate transactions and you know what price you are being paid for your vehicle. In some instances, more money can be had from the old car selling it privately.

Secure your cash

Dealership and brand financing plans are not always the best route for your money. Outside financing sources such as banks and credit unions offer competitive terms and repayment plans. Have your financing in place before making an offer on any new car. With that said, you want to save money. The place you buy your car from wants to make as much money off of you as possible. 

When you go to buy your car, have a price range in mind and stick with that price range. Don’t go too far above it as it will defeat the purpose of you saving any money on your new ride. You will also want to negotiate the prices down as much as possible. You will also want to negotiate a number lower than what you are willing to settle for. It will help you keep your cash secure and it will give you the best chance to save some money.

For most, buying a new car is the second largest investment of your life. However, it is not the second largest investment you will make because you will do it only once, but you will likely have to buy a new car multiple times throughout your life. Learn from your first experience in buying a new car for the future ones that you buy. Make sure you especially learn from your mistakes in dealing with the salesman. Learn how to negotiate. These skills will help you be able to buy a new car for the years to come and you will get the best deal that will allow you to save money. More importantly though make sure it is a deal you can live with and enjoy for years to come.

How To Find The Money to Pay For Unexpected Expenses

Unexpected expenses are a fact of life. From medical bills to home repairs, the one thing you can anticipate is that bills will pop up. When that happens, creative ways to find money to pay for them can mean the difference between barely skating by and moving on with life.

Yard Sales

Yard sales may not seem like a sound way to make extra money, but if you have a large quantity of unused items, selling them will add up. Some people report earnings of several hundred dollars, simply by selling the clothes and small items they no longer use.

Selling Household Items Online

There is a brisk market for unwanted household items online. Sites like Craigslist exist primarily to help you do just that and recently, localized Facebook groups have seen surges in membership as people buy, sell and trade their items among others in their communities. 

Emergency Funds

If you have an emergency fund, consider the wisdom of using it for your current unexpected expenses. Emergency funds are an excellent way to hedge against the uncertainties of life, so if you have not done so already, consider this an opportunity to start by saving even five or ten dollars per month.

Find Out if You Really Owe

You may be able to negotiate your expense. Contact the company you owe and find out if they are willing to lower the price for a cash deal or haggle on some of the costs. This can be particularly true of service and medical bills.

Refocus Priorities

When funds are short, cutting the budget in areas with some leeway, such as entertainment, dining out or clothing expenses, can give you the money now to tackle that extra expense. Cutting those areas rarely causes long term issues but can give you immediate relief with bills.

Home Equity Loans

If the expense you need to cover is higher than the other methods can help with, consider a home equity loan. This allows you to capitalize on the equity you have in your home to create a cash flow, often at very affordable interest rates.

When you look around at your assets, you will find that there is almost always a way to find money to pay for unexpected expenses. With a little creativity, you can handle a bill you did not anticipate and enjoy the satisfaction of paying off a debt.

Informational credit to The Mortgage Centre.

Why You Absolutely Must Perform a Land Title Search When Buying Property

If you’ve ever bought a new property, you’re familiar with all of the paperwork involved. In days past, closing on a property could seem like it takes forever. If you have to close on one property that you’re selling before closing on another that you’re buying, the whole process can turn out to be an all-day affair. Technology is changing some of this, and closing on a property is becoming much easier.

But that doesn’t mean that the need for the information behind the paperwork has gone away, the process of gathering it is just becoming more efficient.

If you talk to a real estate professional, they would assure you that they’re not interested in wasting anybody’s time, but that the paperwork behind real estate transactions is very important and protects you as a buyer. One such important piece of paperwork is a land title search that must be done before buying a property.

A land title search will tell you if anyone else has any claims against the property before you buy it. When you perform a land title search before purchasing a property, you will uncover any liens against the property will become your responsibility once you take ownership of it. You don’t want the purchase of your dream home to become a nightmare because a previous owner had a judgment against them for unpaid back taxes.

It’s not necessarily that rare that things like this are uncovered during a land title search, either. In fact, almost one-third of land title searches uncover some type of problem with the property. What might be discovered? Any item that hasn’t been paid by the previous property owner could be a potential problem for the new owners.

Things like unpaid contractor bills, back taxes, fees from the local government and other types of civil judgments against the property will be revealed. Even something as seemingly inconsequential as an error or typo in a previous deed can mean problems for the new owners. 

It’s not always the case that the current owner is being deliberately deceitful, either. In fact, the current owner might not have any idea that there are current liens on the property. If a complete title search wasn’t performed when that person bought the property, something might have slipped through. By doing a complete and proper title search this time around, you can make sure that all issues are resolved before you buy the property.

A real estate practitioner can help do this search for you and make sure that all of your bases are covered. They will search through public records, court records, plans and dealings directories as well as many other places. The entire process is automated and takes only a couple of clicks for the real estate practitioner to search many places at once.

A land title search is simple to do and can save you headaches and frustration later on. Be sure to have one done when buying a property.

Estate Planning Is the Most Important Financial Planning You Will Ever Do

A lot of individuals assume estate planning is simply about minimizing the estate tax. There actually are many other critical parts to estate planning. Regardless of whether your estate is going to owe tax or not, for the majority of people, estate planning is still essential and ought to be planned and maintained. 

Given the complexity of estate tax regulations, seeking professional guidance is essential. Look for experts who offer specialized services for individuals to ensure strategic, comprehensive, and compliant estate planning.

Many complex situations like the generation skipping tax are an example of knowing who it affects, what triggers it, and strategies for minimizing its impact. Making sure your estate planner is competent with these details; you can ensure more efficient and compliant wealth transfer to your descendants.

A Few Reasons to Create an Estate Plan

• Select a guardianship for dependents
• Have monetary security for your loved ones
• Reduce estate and income taxes
• Pass on real estate to specified beneficiaries
• Streamline management of your estate
• Keep the details confidential and avoid probate

What Resources are Required?

Estate planning may be easy or complicated, being dependent on your circumstance and wishes. For many people a simple estate plan is the only thing that's needed and can deliver considerable benefits. A visit to your estate planner usually involves reviewing the following information and discussing your plan specifics.

• Go over existing wills or trust instruments
• Catalog of all possessions, investments, financial obligations, etc.
• Be aware of how each property is titled
• Establish who will be left your estate
• Outline any special requirements of the beneficiaries
• Select the individual to handle your affairs
• Consider giving to specific charities
• The amount of health-related treatment you desire
• Precisely what memorial arrangements you desire

Process Involved

There are primarily 3 steps associated with setting up your estate plan: planning, documents, and execution. Every phase consists of different tasks that may necessitate the services of a CPA, legal professional, fiduciary, insurance professional, and investment specialist.

Design includes speaking with experts to detail your wishes and objectives and to obtain an understanding of the level of planning required. Documentation needed requires a legal practitioner to prepare legal instruments including a will, trust, durable power of attorney, and medical power of attorney. 

Execution entails entitling property and inheritor designations to correctly fund your plan of action, keeping track of changes, implementing your instructions, satisfying requirements, and compliance.

Professional Estate Administration

Managing an estate must commence before you pass away by detailing what you wish to take place following death or incapacitation. The following individuals are normally involved with the administering of an estate to execute your directions.

• A personal agent to prepare memorial service plans and execute your will.
• A fiduciary(s) to administer any trusts and take care of associated assets.
• A legal professional to help the personal rep with the probate procedure.
• A Certified Public Accountant(CPA), like the ones at Padgett Business Services, to put together estate and tax returns and offer financial guidance.

Income Taxes Involved

There are 5 different taxes that could directly affect your estate: income tax, gift tax, estate tax, generation skipping tax, and state inheritance tax.

• Income tax involves earnings, regardless if it is obtained by an individual, a trust, or an estate. Recognizing when a trust or estate needs to disperse income may substantially minimize taxes. 
• Gift tax relates to the value of an estate, or rights to this kind of asset, or rights to such asset, transferred while you are alive. Figuring out the best ways to use annual and lifetime exemption amounts and appraisal discounts may substantially decrease the gift and estate taxes. 
• Inheritance tax applies to the worth of every property in your taxable estate at the time of your passing. Also simple preparation can save considerable amounts of Federal and State taxes. 
• Generation skipping taxation relates to the value of all property passed on to more than 1 generation below you. This obligation is in addition to the estate tax. 
• State estate or estate tax concerns the citizens of those states that tax the assets of the beneficiaries on the value of the asset passed on at death. Family mechanics and inheritance tax statutes are constantly fluctuating, we can help you keep pace.

Preparation is the secret to managing your affairs, managing resources, and reaching financial security. A visit to your estate planner should result in an education on what the process is and what it will do for you and your surviving family. The following is a check list that you should keep with you when you visit your estate planner. It's your responsibility to make sure you are being taken care of and all your planning is complete.

• Minimize estate, gift, and income taxes 
• Offer an orderly transference of assets.
• Designate guardianships for children
• Find out ways to make use of life insurance.
• Comprehend complex probate laws
• Discharge your desires and wants.
• Recognize how titles impact estate transference
• Assist with management of your estate.
• Know the best ways to make the most of a will, trust, POA, etc.
• Help shield family from creditors.
• Retain more of your resources for your family
• Provide for unique needs of dependents.
• Handle the continuing needs of your Family.

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The Effects of Obamacare and What has Changed

When the Affordable Care Act, more popularly known as Obamacare, was passed in Congress, many thought the problems of a large uninsured portion of the population would be solved. Unfortunately, theory does not always translate into practice. Although more people today are insured, problems with reimbursement rates and disgruntled citizens who refuse to apply, still present obstacles for doctors and hospitals. 

More people are insured, which means less people in emergency rooms

Before, many would simply wait until they were too sick to work, and then go to the ER. Unfortunately, that usually meant they would end up being hospitalized. But Dr. Ira Potter, who practices in one of the poorest regions of Kentucky, told the Louisville Courier-Journal that now his low-income patients are receiving subsidies for insurance, or have been moved to Medicaid. With help from the government, he said, they can now afford to pay for a physician.

Reimbursements are low—meaning many doctors won’t take Obamacare

Dr. Bob Russo, radiologist and president of the Connecticut State Medical Society, told National Public Radio that low rates and administrative headaches that come along with the program could make it a “financial loser”. He pointed out that if doctors can’t be convinced that they're not losing money doing their job, there will be problems. “And they haven't been able to convince people of that," he said.

The problem is not just in Connecticut; numerous companies have cut their reimbursement rates for plans that fall under Obamacare. When Blue Shield of California was designing the new health plans it would offer under Obamacare, the insurer asked doctors and hospitals in its network to accept rates as much as 30 percent lower than what it previously paid.

Only 60 percent of the doctors and 75 of the hospitals that participate in the Blue Shield of California’s group plans chose to participate in plans purchased through the state’s insurance exchange. Some of the state’s most prestigious hospitals, including Cedars-Sinai Medical Center in Los Angeles and University of California medical centers, dropped out altogether.

Hospital charity care is being tied to Obamacare signups

To a number of people, Obamacare carries a whiff of socialism. The end result is that for many hospitals in rural areas, many will still go uninsured and risk getting sick despite the fact that they would be eligible for insurance coverage. William Parsons, 40, told a reporter that he has no health insurance and doesn't intend to apply. "Goin' to the doctor just isn't something I like to do. ... No good comes of going."

Parsons is not an exception. Many hospitals are now reevaluating their charity care policies and demanding that those who would normally be eligible at least attempt to sign up for subsidized insurance. According to a high risk pregnancy specialist, Dr. Gilbert Webb, even insurance for one time procedures like pregnancies are affected. As an example, Southern New Hampshire Medical Center in Nashua now states that applicants who do not purchase federally-mandated health insurance when they are eligible to do so will not receive charitable care.

Katherine Arbuckle, senior vice president and chief financial officer at Ascension Health based in St. Louis, told the Washington Post that the question is whether a patient can pay or simply doesn’t want to. “How do you treat those who decline [coverage]? Do they get free services when others have paid?” she asked.

In reality, Obamacare is still in the shakedown phase. In order to ensure that the program is as effective as possible, it needs to be tweaked in certain areas in order to ensure that the most vulnerable populations are covered. Combined with better education about the program, Obamacare should prove to be more successful in years to come.

Information Credit: Vitals