Wealth Wednesday: The 4 Main Asset Classes
The way to wealth is to acquire and accumulate assets that produce income. There are various asset classes. For the purpose of this article, we will focus only on the top 4 that most people acquire.
Paper
Paper assets are anything you invest in that gives you a digital title of ownership (stocks, bonds, etc). This has been the number one way that most investors around the world have built generational wealth.
Business
From female founders to startup entrepreneurs, business is the most sought after asset known to humankind. Primarily due to its labor-intensive methods, more people feel inclined to start one.
Businesses give you the advantage to pass something down to future generations and a great source of income if you can handle the ups and downs while becoming profitable.
Precious Metals
For over 5,000 years, gold and silver have been used as money and wealth insurance policies throughout different periods of civilization.
Only the savviest investors and major banks continue to hold onto precious metals to help manage their investment portfolio. During times of economic uncertainty, metals typically outperform other assets.
Real Estate
Property is said to be the number one way to pass down a legacy. Real estate is a different type of asset class. Depending on how you own it, it can be an investment (which might cost you money at first) or an asset (an income producing advantage).
Depending on where we are in the Boom/Bust cycle we allocate more of our energy too. the value of assets can go from undervalued to overvalued overtime or over night.
As Financial coaches and Wealth Advisors, we know the power of a good financial plan. We help our clients achieve wealth and accumulate smart percentages of assets listed above.
