The Four Types of Assets

Have you ever thought in depth about the types of assets you invest into over your lifetime? We often only think of assets in accounting terms of fixed or variable assets within a business, or the large personal purchases we make such as our home or investment property. There’s so much more to consider when you think in terms of your future, your lifestyle and how much of your time and resources your assets need in order to maintain their value. Here’s a little food for thought and perhaps a new way to consider assets and their level of importance in your life.

The four types of assets:

Lifestyle. This comes down to personal choice. Your home and potentially a second or holiday home, your cars and any other toys that enhance your lifestyle such as boats, jet skis or even caravans.

Nest Egg. This will become your source of income when you retire, replacing working income with passive income to sustain your lifestyle and cover your expenses.

Active. This type of asset require input from you either in terms of time or money. It’s often a business or a property development

Estate. When all is said and done, this is what’s left over. The assets that will be passed on to your partner and or family and will include insurances and your Will.

 The big question to ask yourself is… are you contributing to your nest egg assets and is it growing at an appropriate rate to ensure you enjoy a comfortable retirement? If you aren’t adding to your nest egg, then who will?

Talk to Blue Chip Wealth about growing your Nest Egg assets and enjoy the freedom that comes with a planned financial future.

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