It is easy for young employees to underestimate the value of their possessions. They might not think they have much or even perceive the importance of certain items. Yet, as we grow older and build assets, keeping track of what we own becomes crucial. A personal asset inventory helps. It is sometimes overlooked, but there are benefits to having that inventory.
- The first benefit of having a personal asset inventory done is the ability to assess net worth. Net worth consists of everything you own that has a monetary value minus any liabilities from a person’s car to furniture, kitchen appliances, or jewelry; all these items contribute to determining an overall personal net worth. Knowing the total value of those assets is the first step in planning for future financial goals and maintaining financial wellness.
- A personal asset inventory helps with insurance. A detailed list of possessions makes filing a claim for theft or damage easier. Without the inventory, an individual has to rely on their memory to recall what was lost after a disaster. A detailed asset inventory can speed up the claims process because it provides precise information, including the assets’ make, model, purchase price, and current market value.
- A personal asset inventory is essential for estate planning purposes. Young employees do not want to think of this, but death is always close. A unique asset inventory guarantees that the executors of the will can distribute possessions according to the deceased’s wishes. It is easier for your loved ones to deal with your estate, especially if you have a considerable number of assets.
- A personal asset inventory simplifies taxes. The Internal Revenue Service might require a person to list assets when the tax returns are filed. Keeping track of all assets provides precise information that can help simplify the tax filing process. Additionally, an accurate record of assets means a person can include small things like hobby equipment that could be deductible.
- The final benefit is peace of mind. The inventory makes a person feel more in control of their financial wellness and that all the information needed about personal possessions is readily available. The inventory can be used to decide what needs to be sold to preserve financial wellness. Essential items such as an automobile might not have to be sold to pay bills.
A challenge that people have is being able to do an asset inventory. Fortunately, Countrywide Pre-Paid Legal Services has a financial wellness benefit that includes preparing a personal asset inventory for plan members.
We provide a certified counselor who will assist the plan member in creating that inventory. Our professional deals with everyday financial challenges. This person can also offer other vital advice to help financial wellness, such as ways to deal with college debt and saving to buy a house.
Employers want the best for their workforce and provide benefits everyone can use. We heartily agree with these notions. We work closely with prospective clients and develop unique employee benefits. We explain all our financial wellness options to management, and they decide which will be part of their benefits. We provide member services and a streamlined administration that gets things done!
In conclusion, there are many benefits to having a personal asset inventory done: assessing your net worth, keeping track of your possessions for insurance, and estate planning. Our other benefit options can assist employees with issues such as managing medical bills and creating a workable personal budget. Our counselors are easy to work with. They have suggestions that make dealing with personal finances more manageable.
If you have any questions about our services, please contact us at your convenience. We welcome any opportunity to explain how we can help your employees.