Moving on to Step 3 means creating an inventory of your non-liquid assets. These are items that would take a while to turn into cash. Think of your home or your car. It could take anywhere from a few days to months to sell and get the cash.
Home Sweet Home
Is your current home part of your retirement plan? Many people count on the equity in their home as a large part of their retirement nest egg. Maybe you’re planning to downsize or rent after you retire. But don’t forget you’ll need someplace to live.
Planes, Trains and Automobiles
So let’s inventory your non liquid assets. Note your house, car, and jewelry on your asset tracker. Do you have a boat or RV? Maybe a motorcycle or ATV? What about collectibles?…. Like that collection of beanie babies (Yep, I was sure that would pay for my kids college)!
Track down the current value of each asset, your loan balance, and the potential cash value. Don’t forget there may be costs associated with turning an asset into cash like closing costs on your house. Here’s an example:
Do you have items that you aren’t planning to include as part of your retirement? I have family jewelry that I’ll pass on to my children. Therefore, I’ll list it separately on the inventory so it’s not include in my calculations and retirement balance sheet.
Do you have a safety deposit box or a storage unit? As long as your compiling your inventory, take note of these along with their location, where the keys are located and a description of the contents.
Great job! You now have tracked down your assets from your employers, inventoried your liquid and non liquid assets. Next, we’ll pull together the asset side of your retirement balance sheet and create an investment tracker.
Do you feel more organized? Did you find any assets that you forgot?