Estate Planning: Facilitates inter-generational wealth transfer through tools like wills and gifts, ensuring tax efficiency and legal compliance.
Net Worth: Calculated as assets minus liabilities, it reflects the financial strength of a household and should be tracked periodically.
Assets Classification: Assets are divided into physical (e.g., real estate) and financial (e.g., equity), categorized as growth-oriented, income-oriented, or both.
Physical Assets: Tangible assets like gold and real estate are growth-oriented, often illiquid, and require specific skills for investment decisions.
Financial Assets: Standardized, regulated assets like deposits and equities offer liquidity and ease of evaluation, suitable for smaller investments.
MODELEXAM® 
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