[Ben345]

Hi everyone. My wife (30) and I (32) are just starting some research on China Adoption. We just found out that we have fertility issues that will make it hard to have children of our own.

My wife finished med school about a year ago so as you can imagine, our positive net worth is a little behind. We have a large asset base for our age but we also have a sizable amount of student loans. It will probably take us at least 1.5 to 2 years until our positive net worth is 80K (which seems to be the requirement for China). How strict is this requirement? We now both make good money but really do not want to wait to start the process.

Also we live in Kansas City and are looking for some agency suggestions.

Thanks for any info…

[specialk4b]

Our agency has you fill out a worksheet with your assets and liabilities showing how much net assets you have. My understanding is that China is being fairly strict on this. Be sure to include non-liquid assets, such as life insurance, retirement plans, household furniture and jewelry.

I'll send you a PM about my agency.

[flowermom]

include the value of your home..

we have a studewnt loans and a high amount of cc debt but we are showing the cc debt will be paid off in 4 yrs. which is when we probably will get the referral anyways.

I also have a large jewelery collection so include your wife's rings and any home goods such as furntiure, paintings, etc.

Also, include your cars, 401's.

We had the same problem but then when you start adding it up you can make things show differently. Pm me if you want.

[Ben345]

Great advice, thanks... So it sounds like you don't have to worry about the positive net worth till referral time. In that case then we should be okay.

Can you really include a life insurance policy?

[pgruodis]

Net Worth - PM Sent

[flowermom]

you do have to show $80,000 net worth at the time of your home study but I know for us that it just helped in general to show them my plan b/c they want to know how you handle debt and what your plans are if any to change it.

As for life insurance it depends for instance I have a term policy of a million on my husband but that is not a million in my assets..only if you have that insurance where you get the return of your premiums paid but usually that is not that much. They do like to see life insurance though of any amount.

All your assets get grouped into one large sum at the end so your computers, home goods, collections of some sorts can get added together if that makes sense.

This was one of our biggest worries too and like I said I think I have it figured it out but we have yet to go through the home study!

[flowermom]

Actually I would love to hear any other opinions on this and what you included.

How did you calculate your home goods? I was told I could write up to what I was insured for and then my home value on top of that.

What did others do?

Sometimes being young really sucks!! I feel like our assets to debt ratio is so off!

[jessibird]

I would ask your agency to help guide you, we were heading for the Philippines or China depending on what fit us the best...that being said China seemed to fit us. We were told that we did NOT have to include our student loans. So, we didn't. Our insurance did not go into our net worth calculations, but it did go on the financial statement for China. What we did for our assests was to go through each room and estimate what we could sell (very general) them for now.
We recieved a great net worth spread sheet from other member on the site, which really helped.

[LisaAnn1170]

Another idea to calculate the value of your possessions...

Our agency suggested we look at the "replacement value" for our possessions on our home owners insurance. We just used that value rather than make a list of goods and calculate. It took two minutes to find our insurance statement and I checked that computation off our list!

[Trace7]

Can I get a PM about net worth, please? We have a positive one, but noweher near 80K - but maybe it is closer than I think depending on how it is calculated. We don't plan to adopt again - but it would be nice to know "just in case".

[specialk4b]

Originally Posted by Trace7

Can I get a PM about net worth, please? We have a positive one, but noweher near 80K - but maybe it is closer than I think depending on how it is calculated. We don't plan to adopt again - but it would be nice to know "just in case".

That's how it starts, Tracy!!!! LOL

[Mailbox13]

I would calculate net worth the following way:

PLUS
Value of House
Value of Cars
401k/retirement balances
Cash in savings/checking/cd's
Investments/mutual funds/stocks
Real Estate (if other than primary residence)
Clothing
Jewelry
Appliances, electronics, other household goods

MINUS
Mortgage
Car loan
Student loans
Home equity loans
Credit card debt
Any other debts

This should get to your net worth. You can only include insurance if it has some sort of cash surrender value. Usually term life policies are not considered assets.

[flowermom]

Applicant(s): Date:
Earnings
Applicant’s Salary (yearly gross) $
Other (specify): $
Spouse’s Salary (yearly gross) $
Other (specify): $
Total Earnings: $

Assets
Cash in bank (current savings) $
Cash in bank (average checking) $
Stocks (estimated value) $
Bonds (estimated value) $
Cash value of life insurance policies (not face value) $
Other $
Automobile(s):
Make Model Year Purchase Price $
Market Value
Make Model Year Purchase Price $
Market Value
Home:
Purchase date Purchase price Equity $
Market Value
Other assets and estimated value (itemize)
$
$
Total Assets: $

Liabilities Monthly Payment Outstanding Balance
Home mortgage $ $
Personal loans $ $
Installment accounts (itemize)
$ $
$ $
$ $
Real estate loans $ $
Insurance Policy Loans $ $
Automobile loans $ $
Others (specify) $ $
$ $
Total Liabilities: $
List life insurance policies by:
Spouse covered Name of Insurance Co. Face Value


List disability policies by
Spouse covered Name of Insurance Co. Face Value




Monthly Expenses
(If not monthly, pro-rate monthly amount)

1. House rent or payment, tax, and insurance $
2. House upkeep – repairs, improvements lawn
and garden expense $
3. Groceries: (Include meals purchased out and any food delivered) $

4. Utilities:
Power $
Gas $
Water $
Phone $
Garbage $ Total Utilities $

5. Clothing $
6. Medical and dental-average $

7. Car expenses:
Gas $
Tag and Tax $
Payment $
Upkeep on car $ Total Car Expenses $

8. Insurances:
Life $
Health $
Car $
Household (if not included in #1)
$
Burial $
Other $ Total Insurance: $

9. Reading materials $
10. Recreation and hobbies $
11. Church and charity contributions $
12. Installment accounts $
13. Club and membership dues; professional dues $
14. Savings and /or investments $
15. Child support/alimony if applicable $
16. Other (specify) $
TOTAL MONTHLY EXPENSES: $

Applicant’s monthly take-home pay $
Spouse’s monthly take-home pay $
Add other monthly net income $
TOTAL: $
Total monthly expenses (subtract) -
EXCESS MONTHLY INCOME* $

*Excess should be sufficient to cover needs of expected child

[flowermom]

I had to laugh at the clothing reference..I told my husband one day my manolos would pay for themselves...what an investment..haha!

[hoping44]

One more suggestion that you may not have thought about... Our agency said to be sure and use the highest balances for the month for your checking accounts. Use the balance on the day that your paycheck is deposited and before you pay your bills for the month. It might not make a big difference, but it could be that little extra that helps you get to the figure that you need.