What Is a Personal Financial Statement?
A personal financial statement is a spreadsheet that details the assets and liabilities of an individual, couple, or business at a specific point in time. Typically, the spreadsheet consists of two columns, with assets listed on the left and liabilities on the right.

Why is a personal financial statement useful?
This statement is a tool that can be used to analyze your current financial status, enabling you to track net worth and set financial goals. These statements are often reviewed by lenders when a client applies for credit or a loan, including a mortgage.

What are assets and liabilities?
Assets are investments and property of significant value that can be used as collateral to secure a loan. While salary and other forms of income are not listed as assets, lenders will typically ask to see them, listed separately, to gain a better understanding of your ability to manage liabilities. Common assets include:

Account balances: savings, certificates, money market accounts

Investment balances: stocks, ETFs, mutual funds, bonds, annuities, cash-surrender values of life insurance, commodities

Retirement accounts: 401(k)s, IRAs
Real estate

Valuable personal property: vehicles, boats, jewelry, or collectables

Liabilities are accounts that carry a balance to be paid down by regular installments. Monthly accrued expenses (utilities, cable, cell phone, insurance payments, rent, food, and other general living expenses) are excluded. Common liabilities, however, do include balances for:

Credit cards
Student loans
Unpaid medical bills or unpaid taxes
Mortgages or vehicle loans
Loans that you have co-signed

How is net worth calculated?
It’s calculated by simply subtracting total liabilities from total assets. The difference is your net worth. If you need help calculating it yourself, our Money Management tool in Online Banking and the Mobile App can help you calculate your net worth when you add all of your accounts!

What if you have a negative net worth?
Whether your net worth is positive or negative, it is a starting point. It tells you where your finances currently stand and provides motivation for goal-setting. The worst action you can take is adjusting your numbers to better your net score. Intentionally modifying amounts on an official personal financial statement is punishable by large fines and/or imprisonment.

Your personal financial statement is like a photo, but your net worth is like a movie.

While a personal financial statement is a static snapshot of your net worth at a specific moment in time, net worth is constantly in motion as investment balances, interest rates, and property values fluctuate and liabilities are reduced.

Culled from Clearview

There have been few things in my life which have had a more genial effect on my mind than the possession of a piece of land. – Harriet Martineau

You can never solve a problem with the same kind of thinking that created the problem in the first place. – Albert Einstein

Real estate practice is not about selling or buying a home. It’s about representing your client’s greatest asset to your clients greatest benefit. – Alex Delgado
A person who won’t read has no advantage over one who can’t read. – Mark Twain

There’s no shortage of remarkable ideas, what’s missing is the will to execute them.” – Seth Godin

Writer and former dotcom businessman, Godin is saying that talk is cheap, but in a nicer way. Yes, ideas are a dime a dozen, but the real meat on those bones comes from trying to realize them. It is only then that the problems show up and the real work of resolving them starts.

Don’t wait to buy real estate, buy real estate and wait. – T. Harv Eker

“If you don’t own a home, buy one. If you own a home, buy another one. If you own two homes, buy a third. And, lend your relatives the money to buy a home.”
John Paulson, investor and multi-billionaire

Every person who invests in well-selected real estate in a growing section of a prosperous community adopts the surest and safest method of becoming independent, for real estate is the basis of wealth. – Theodore Roosevelt

Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world. – Franklin D. Roosevelt

Real estate practice is not about selling or buying a home. It’s about representing your client’s greatest asset to your clients greatest benefit. – Alex Delgado

We don’t have to be smarter than the rest. We have to be more disciplined than the rest. – Warren Buffett

Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world. – Franklin D. Roosevelt

Buying real estate is not only the best way, the quickest way, the safest way, but the only way to become wealthy. – Marshall Field41

“If you don’t own a home, buy one. If you own a home, buy another one. If you own two homes, buy a third. And, lend your relatives the money to buy a home.”
John Paulson, investor and multi-billionaire

"Most people think buying is investing, but they're wrong, it doesn't make you an investor any more than buying groceries makes you a chef"- Gary Keller

. “Wise spending is part of wise investing. And it’s never too late to start.” Rhonda Katz

You can never solve a problem with the same kind of thinking that created the problem in the first place. – Albert Einstein

How Much Balance Should You Have On Your 401(k) Account As Per Your Age?

Retirement is one of the biggest milestones for anyone. However, you cannot reach that stage of life overnight, and you need to take some proper measurements from an early age so that you can ensure you have a sufficient amount of money when you retire. You also need to financially prepare yourself for the later stage of your life when you don’t have any steady income source. This is why many people ask how much money they need to save in their 401(k) account as per their age. Make sure you read this article to know more.

How Much Money Should You Store in Your 401(k) Account?
By the age of 60, it’s best if you manage to save eight or nine times your gross income. However, sometimes things might not go according to your plan, and you might end up saving lesser or higher money. The retirement savings plan you choose as per the 401(k) account will be dependent on your current financial condition as well as your goals in life. Here are some effective ways you can measure whether you’re on the right track or not.

401(k) Contributions
The 401(k) is a retirement savings plan that the employer sponsors. The primary purpose of the 401(k) plan is to help money save a significant amount of money for their retirement age. You need to contribute a specific amount of money as per your payroll on your 401(k) account during your working days. The money you invest in your 401(k) account will grow over time. However, make sure you don’t withdraw the money from your 401(k) account before you reach your retirement age. If you need more help, consider visiting [url]solo401k.com[/url].
401(k) Withdrawals
If you want to use your 401(k) account to withdraw money, you need to wait until you reach the age of 591/2. Before this retirement age, every withdrawal you make from your traditional 401(k) account will attract a 10% penalty. As per Investopedia, make sure you understand the 401(k) withdrawal rules.

During the early stage of your life, you might not need to make distributions from a 401(k) account. Saving your money in the 401(k) account without withdrawing will help it grow. This will also help you avoid paying additional taxes. However, when you age 72, make sure you start taking RMDs, or you might need to pay more severe taxes.
When you want to withdraw money from your 401(k) account after you reach your retirement age, the amount will be considered as your ordinary income, and therefore, it will be taxed. When you strategically withdraw a specific amount of money each year, you can prevent paying more income tax.

How Much Should You Have in Your 401(k) Account By the Age of 60?
When you reach age 60, it is best if your 401(k) account contains a little more than $420,000, as per the Federal Reserve.
However, one factor that will have a huge impact on your overall 401(k) portfolio is how long you’re planning to work for a company. If you want to retire early, you need to consider the healthcare costs. Remember that the longer you wait the higher amount you can withdraw from your 401(k) account.

Conclusion
Now that you know how much balance you should have in your 401(k) account. Do you have any other questions? Make sure you comment below to let us know.

“Buy on the fringe and wait. Buy land near a growing city! Buy real estate when other people want to sell. Hold what you buy!” - John Jacob Astor, real estate and business mogul

The bad news is time flies. The good news is you're the pilot."
— Michael Altshuler

"Dreams don’t have to just be dreams. You can make it a reality; if you just keep pushing and keep trying, then eventually you'll reach your goal. And if that takes a few years, then that's great, but if it takes 10 or 20, then that's part of the process."
— Naomi Osaka