The client's temperament and personality, attitudes and beliefs, and financial knowledge and experience are all likely very evident in the income and expense and net worth statement
. For example, a client's values and attitudes are often apparent from spending patterns, while risk tolerance and financial knowledge or experience may be inferred from the client's net worth statement
INCOME: $34,000 Salary Income $2,000 Total Income $36,000 After payroll deductions and savings EXPENDITURES: Total $36,000 Food 5004 Alcoholic Beverage 324 Housing 11,664 Apparel 1908 Transportation 6696 Health Care 1908 Entertainment 1800 Personal Care 468 Reading 180 Education 540 Tobacco Products 288 Miscellaneous 864 Cash Contribution 1044 Personal Insurance 3312 The preparation of a net worth statement
, a budget and an income and expense statement places one's financial situation under control.
"During our business meetings we have our net worth statements
listing assets and liabilities.
Make sure that your financials audited including income tax returns, net worth statements
, bank statements and all other financials ready with you.
This process typically involves income verification such as Form W-2 or tax returns, net worth statements
, or third-party confirmation from a CPA or other source.
The vetting process by condo managers and owners of these individuals renting these condos is particularly cumbersome, time consuming and normally requires the receipt of two years tax returns, net worth statements
, bank statements and a credit report.
It's painful to focus on budgets and net worth statements
if you suspect that you make less than you spend and that your net worth is in minus territory.