Assets & Liabilities

June 12, 2019

An Introduction

In our last InFocus series, we explored how protection is so critical to your wealth and prosperous legacy down the generations. You may remember our analogy of the house, which, like your financial map, is supported by multiple components from ‘roof to foundation.’ Minimizing risk is a foundational element of all financial security.

This time around, we draw a parallel to the home’s interior. Here, there’s a bunch of pretty things to look at: comfortable furniture, beautiful art, fancy appliances and a wealth of shiny, new possessions. Consider these your assets.

But hiding behind these lovely ‘toys’ is a mountain of liabilities: a mortgage, property taxes, utility and cable bills, and a list of repairs waiting for the local handyman. That means the actual value of your home and its contents is constantly changing. You can try to take a snapshot, but capturing the true picture takes a bit more math.

Like that interior, your finances are also in flux. Just like everything under your home’s roof, your assets and liabilities require careful balance to help you achieve ultimate financial success. Managing these intertwined components is also crucial to keeping pace with your Real Cost of LivingTM.

So, in this second InFocus series, it’s only fitting that we step inside and take the grand tour. Using principles from The Living Balance Sheet® , we’ll explore six asset categories:

  • Personal property
  • Savings
  • Investments
  • Retirement accounts
  • Real estate
  • Business

Over your lifetime, your wealth will be determined by how well you allocate or organize these various asset classes.

We’ll also examine four aspects of the liabilities domain, including various short-term debt, mortgages, taxes and business debt. Managing these obligations and following a smart tax strategy will be major factors in your net worth.

Ready to cross the threshold and crunch some numbers? Let’s meet the featured expert who will share his expertise with us over the coming weeks.

 


 

Series contributor: Simon Friedman
Partner, Friedman Associates

Before joining BFG over a decade ago, Simon Friedman amassed years of family insurance and financial services experience under his legendary father, Samuel D. Friedman. In the first year of his career, he earned a coveted seat at the Million Dollar Round Table, and has since gone on to qualify for the distinguished Presidents Council. Simon Friedman is a Financial Representative of The Guardian Life Insurance Company of America® (Guardian), New York, NY. Brooklyn Financial, which is the doing business as (DBA) name of Guardian Distributors, LLC, is an Agency of The Guardian Life Insurance Company of America® (Guardian), New York, NY.

 

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