Taking Stock

• 1). Make a list of the types of assets you own. This might include bank accounts, certificates of deposit, money market accounts, mutual funds, stocks and bonds, retirement accounts, real estate, businesses and any digital properties, such as websites or Internet domains. Other considerations are patents, intellectual property, royalties, copyrights and any other types of investments you may own. List important, valuable items, such as jewelry, artwork and furnishings. After making the list, gather current documentation of the worth of each component and its location. You may want to group some components together in files for better organization. Finally, list this information on a spreadsheet or worksheet, creating an at-a-glance way to view all current assets.
  
  
• 2). Gather all insurance and beneficiary information together, as well as information regarding your will, such as the contact information of the attorney you've hired to oversee your personal business, if applicable. This folder should contain information regarding life insurance, group or individual health benefits, Document the contact information of the individual you've chosen to administrate your wishes in the event of your death, as well as a list of dependents, such as children, spouses and grandchildren. Document the current cash value of any term life insurance as well.
  
  
• 3). List all liabilities and debts, which should include mortgage payments, automobile and student loans, any credit card balances, as well as any other types of personal debt. As in Step 1, create a spreadsheet that lists the type and location of the liability or debt. When laid side by side, comparison of debt versus assets will give you an idea of current worth. These documents comprise your asset inventory or portfolio.
  
  
• 4). Use portfolio information to set financial goals. Decide how much you wish to expand your worth annually and devise a plan to generate additional income or sale of assets, such as real estate or other investments. Update the portfolio annually. A good time to do this is prior to tax season as a well-organized portfolio will make income tax and asset/liability reporting to the Internal Revenue Service easier.