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12 categories to expect when completing your personal financial statement.

My Financial Snapshot works hard to provide the #1 personal financial statement builder available online. Our step-by-step process is broken down into 12 categories. With these twelve categories, we cover 99% of assets and liabilities that an individual may need to represent their personal financial statement.

All 12 categories may not be applicable to you, but use this information as a guide of what to expect when completing your snapshot on our platform. 

The 12 Categories:

1. General Information

  • Basic information you see on most forms. Expect to fill out your name, phone number, email, date of birth, employer, marital status. 
  • Tip: “Accurate as of” – Your financial snapshot is a reflection of your finances at a specific point in time. Most subscribers fill out their financial snapshot at the end of the month to pull information from various statements.

2. Cash and Cash Equivalents

  • Asset categories that can be converted into cash immediately. 
  • Tip: Checking and savings accounts are the two most common account types. If you do not see your account type displayed, select “Other”.

3. Marketable and Non-marketable Securities

  • The short definition is stocks, mutual funds, or ETFs that you own. Marketable securities are liquid financial securities often traded on large public exchanges. 
  • Non-marketable securities are less liquid financial securities traded on secondary markets. An example of this is a bond or privately held stock.
  • Tip: These are not securities that are held inside of a retirement account. Please consult your financial advisor if you are unsure if your securities are retirement assets or not.

4. Accounts Receivable

  • Money owed to you from another person or company, for personal reasons.
  • Tip: This is not income to be received for a business. 

5. Life Insurance

  • Insurance that pays out a sum of money either on the death of the insured person or after a set period. 
  • Inputs will include the face amount, cash value, and policy loan on your policies.
  • Tip: The cash value of an insurance contract, also called the cash surrender value or surrender value, is netted against any policy loan to represent the value of life insurance on your personal financial statement. 

6. Retirement and Deferred Compensation

  • Retirement assets are funds set aside through various investment instruments to be used at a later time in life. 
  • Deferred Compensation is money that has been earned from your employer, but is to be paid out at a later date.
  • Tip: Retirement accounts typically offer tax advantages to not access your money until a specified date, and face penalties if you do.

7. Primary Residence and Additional Real Estate

  • The value of your primary residence, as well as other real estate owned by you, and any outstanding debt against those properties.
  • This is often the most important section of the personal financial statement builder. See the information pop-out buttons on your inputs for more information.
  • Tip: If you are a current rental property owner, or would like to own rental property in the future, this is an excellent presentation of your rental real estate. This will get you familiar with what a lender may ask about in the future. 

8. Personal Property

  • Belongings that can often be moved, not including land or buildings. 
  • Tip: If you are applying for a loan, be prepared to provide third-party verification for the market value of the personal property you are listing

9. Business and Other Assets

  • The value of any business interest that is owned by you through various entities.
  • Business types can include sole proprietorships, partnerships, corporations, etc. 
  • Tip: Business Value can be difficult to calculate and verify. If you can get verification from a business valuation consultant, or another type of financial services member, do so. It is always good to have the most recent tax returns for those businesses on hand, as well as the most recent financial statements in the form of an updated balance sheet and income statement. 
  • Other assets may include items you are not aware of that are of monetary value. Cryptocurrencies, precious metals, and health savings accounts are examples of other assets.
  • Tip: Furniture and other household items should not be included in your personal financial statement. 

10. Liabilities or Debt

  • Money that is owed to another individual or company at a future date and is not yet paid.
  • Tip: The maturity date input under Other Liabilities is a good self-check to see when that debt will be paid off if you keep paying on time. 

11. Taxes Owed

  • Outstanding taxes due to various government authorities. 
  • Tip: Owing what is commonly known as “back taxes” can happen for a multitude of reasons. If you are applying for a loan, be prepared to explain the nature of the taxes owed as well as when you expect to be paid in full. 

12. Income Summary

  • These inputs are a representation of your annualized income from various sources.
  • Salaries, bonuses, interest, dividends, rental property income, business income, and other income are all represented here. 
  • Tip: A prior-year tax return can be a good reference point for income for several sources that are mentioned above.

These 12 categories will help you be prepared for filling out your personal financial statement. Our platform also makes updating and storing your snapshot so easy and convenient!

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