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 Topic Thread:

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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