5 investments net worth mar 11
TRANSCRIPT
1
2
Net Worth: the difference between your total assets, and your total liabilities.
Assets: things that you own that are worth something.
Liabilities: what you owe
3
Assets:
Liquid Assets: assets that can easily be converted to cash
4
Semiliquid assets:
assets that can be converted to cash, but not immediately.
usually some type of long term investment.
5
NonLiquid assets:
assets that can not readily be converted to cash.
usually some type of property that must be sold in some manner
6
Liabilities: what you owe
Shortterm debt
should be paid off within a 12 month period
typically credit cards, and small loans
7
Longterm debt
debt used to finance longterm investments like real estate, or major personal assets like your residence.
8
Jewelry goes to her financial advisor to find out how her net worth looks. She gives her advisor the following information:
she lives in a $210,000 home with a mortgage of $152,000.
she has $35,000 invested in RRSPs
she has $734 in her chequing account and owes $12,500 on her credit card.
she has a vehicle worth $15,000 but still owes $5,000.
9
10
11
12
***
13
*** DebtEquity Ratio should not exceed 50% of Net Worth.
14
Complete Assignment #5
And that's the end of the unit.