Fixed or Equity Assets?
Types of Assets:
Fixed assets - the rate of return on a fixed asset is its interest.
An example of a fixed asset would be a government treasury bond.
Equity assets - an equity asset hedges against inflation. The
return on an equity asset depends on factors in the market and the economy.
Equity assets represent ownership.
Your biggest asset - for those who are not retired, the ability
to generate earnings is your greatest asset.
Which type of investment is best for your situation?
Investment considerations:
· The investment returns (associate
with your risk tolerance)
· The existing diversification of your
portfolio
· The tax implications of the investment
and their effect on you
Why are you investing this money?
Identify your investment priority:
· Growth
· Income
· Conservation of principle
· Playing the market for fun
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