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Phone: (713) 681-2500

Fax: (713) 684-1600

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Community Outreach
Important Note:

June through November our agency may become prohibited from binding coverage should a “Tropical Disturbance” enter the Gulf of Mexico or Caribbean Sea.

In these cases we may be unable to bind new coverage quoted in open proposals until the storm leaves our area and our binding authority has been restored.

Please arrange your coverage protection early to avoid this type of delay. While we regret any inconvenience, the carriers impose these restrictions on all agencies.

Determining Your Net Worth

Your neighbor drives a BMW, sends his kids to private school and has recently installed in in-ground swimming pool. At face value, it appears his net worth far exceeds yours. After all, you are content driving your seven year old Honda Civic and insist that your kids work to put money in their college fund. Appearances are not everything, however. It could very well be that your net worth exceeds your neighbor’s, who could be operating in the red, and therefore poorer (on paper, at least) than the single mom who is working a minimum-wage job.

To figure out your financial worth, you will need to make a list of your assets and your liabilities.

Put simply, assets are what you already have. Chances are, you have quite a few assets, even if your checking account only contains a hundred dollars. Here are a few examples of assets you may own.
The equity in your home as well as any other real estate in which you have equity or own outright.

  • Your checking, savings and retirement accounts.
  • Your life insurance.
  • The cash you have on hand, as well as any money you are owed.
  • Personal valuables such as electronic equipment, jewelry and musical equipment. Include antiques and valuable personal collections, such as a coin collection.
  • Any vehicles that you own. Cars, trucks, an RV, ATVs and boats all count.
  • Investments such as stocks, bonds and mutual funds.

Ideally, your list of liabilities will be shorter than the list of your assets. Liabilities are what you owe to others. Examples of liabilities you may have include the following:

  • The mortgage on your house, the loan on your car or other outstanding loans, such as home equity loans.
  • Your outstanding student loans.
  • All credit card debt.

Determining Your Net Worth

Calculating your net worth is a straightforward process. Simply subtract your liabilities from the value of your assets. Once you have done so, you will have a positive or negative number. This number is your net worth.

For example, if you have recently graduated from college, you may have thousands of dollars of student loan debt and have a mortgage on a home with very little equity. In this situation, in the absence of a large inheritance, you likely have a negative net worth. By making wise financial decisions, you can work to build your net worth over the years.

On the other hand, if you’re close to paying off your mortgage, have a significant amount in your 401K and own your vehicles outright, you are more likely to have a positive net worth.

Keep in mind that your net worth is not set in stone. If you are not happy with your final number, remember that you can always downsize, budget to pay off credit card debt or make other changes to get out of the red and into the black.