What is a Financial Assessment?

You must conduct “financial assessments” to ensure that you have enough money to pay ongoing costs, such as taxes, debts and expenses, over your Life Expectancy.

Examine your sources of income, pensions and investments.

Any credit trouble will have to be improved in order to get a personal or home loan approved.

The financial assessment determines whether you must set aside a certain amount of money to pay debts and other expenses.

To figure whether a set-aside is required, subtracts property charges, debt obligations and other living expenses from the your income and assets. The resulting “residual income” is the amount of money left over each month.

This figure determines whether you have enough monthly residual income to pass the assessment.

If you pass the financial assessment, you can proceed with a better financial reality. If, however, you determine that you don't have adequate cash flow available in a Life Expectancy set-aside. You have a PROBLEM.