Personal assets are things or money which belongs to an individual or corporation. Personal Assets it is an own value or a resource of value that can be changed into cash. It could be distinguish two types of personal assets: tangible or intangible.
Types of personal assets
We can differentitave two types of perssonal assets: Tangible Assets - this assets can be touched and seen, this is are material things. For instance tangible assets are (Examples of assets, YourDictionary):
- Cash on deposit
- Cash on hand
- Certificates of deposit or CDs
- Commercial paper
- Corporate bonds
- Corporate stock
- Debentures held
- Federal agency securities
- Federal treasury notes
- Guaranteed investment accounts
- Loans to members of insurance trusts systems
- Loans receivables
- Marketable equity securities
- Marketable securities
- Money market funds
- Savings accounts
- Share of funds in governmental investment accounts or pools
- State and local government securities
- Time deposits
Intangible Assets - this is second type of personal assets. This type can not be touched and seen, it is immaterial. For instance intangible assets are:
- Brand recognition,
- Trade names,
- Performance events
- Musical works
- Patented technology
- Computer software
- Literary works
Personal assets in small business
Some of small business and enterprises use personal assets to support own company. Enterpernuars use own savings or even take credit secured by their own home and properties. Financing small business often have really close relationship with personal assets. It is caused that economic downturn which is really chalanges for small enterprises. They can not get credit as a business, so this is reason why owners risk their own safe to support company (J. Moon,2010, p. 9-10).
How to invest personal assets
It is really important to invest yours personal asstes. It is several possible ways:
- Traders who invest in short term period
This is way to invest money by buying valuable things to sell tem with profit. This is short term investition und unfortunately gives low stability.
- Small investors
Investing in equities huge amount of money could be risky. When it comes to ivest our perssonal assets, it sould be done in safe way to not lose money. On first step our investing ladder we should start to invest in safe opportunieties for egzample in gold, cash and index-linked.
- Aggressive investores
In 1986 Nigel Lawson introduced Personal Equity Plans ("PEPs"), which was described as an ‘Aggressive Growth’ PEP. Sometimes holding for years but it never getting back profit.
- Seeking high dividends
This is safe and dependable to invest in personal assets' dividend. However, it is not high and do not give high profit. If we combinate dividents we can make some profits, but it wouldn't be a high-yielding but stable and not risky.
- A geared and long-term investment
If we look in a long - term investment, one of the better solution would be an investment found (R. Angus, 2017).
How protect personal assets by web application
It is possible to use web application to monitoring personal assets. By using this application you can monitoring net worth, tracking your investment, management of yours stock. Additionally you can personalized e-mails system to give you report of your personal assets (L. Szathmary, A. Boc, P. Valtchev, V. Makarenkov, 2018, p. 6).
Examples of Personal assets
- Real estate: Houses, condominiums, land, and other physical properties owned by an individual.
- Investments: Stocks, bonds, mutual funds, ETFs, and other securities owned by an individual.
- Cash: Money in the bank or in cash form.
- Retirement Accounts: IRAs, 401(k)s, and other retirement accounts owned by an individual.
- Personal Property: Jewelry, art, collectibles, furniture, and other physical items owned by an individual.
- Business Ownership: Ownership of a business, either as a sole proprietor, partner, or limited liability company.
- Intellectual Property: Patents, copyrights, trademarks, and other forms of intellectual property owned by an individual.
Advantages of Personal assets
One of the most significant advantages of personal assets is the financial security they provide.
- Financial security: Personal assets can provide financial security, as they can be liquidated quickly to cover any unexpected expenses. Having a diversified portfolio of assets also provides a cushion against economic downturns and market fluctuations.
- Tax advantages: Many personal assets provide tax advantages, such as deductions for interest payments or capital gains. This can help you reduce your taxable income and save money.
- Growth potential: Many personal assets, such as stocks and real estate, have the potential to appreciate in value over time. This can provide you with an additional stream of income and increased financial security.
- Flexibility: Personal assets provide you with the flexibility to invest in what you want, when you want. You can choose to invest in a variety of different asset classes and adjust your investments according to your risk tolerance and financial goals.
- Income protection: Personal assets can provide an income stream, even if you are unable to work. This can help to ensure that you and your family have financial stability, even in difficult circumstances.
Limitations of Personal assets
Personal assets have several limitations.
- Limited Liquidity: Personal assets are not easily converted into cash. This can make it difficult to access funds when needed.
- High Risk: Investing in personal assets can be risky as the value can fluctuate.
- Long-term Commitment: Investing in personal assets often requires a long-term commitment of both time and money.
- Tax Implications: Investing in personal assets can have tax implications, as profits may be subject to capital gains tax.
- Cost of Ownership: Owning personal assets can be expensive, as there may be additional costs such as insurance and maintenance.
In addition to tangible and intangible personal assets, there are several other approaches related to personal assets.
- Financial Assets - these are assets that can be used to generate income or are held as long-term investments such as stocks, bonds, and mutual funds.
- Real Estate Assets - these are assets such as land, buildings, and other properties.
- Private Equity Assets - these are investments in private companies or startups, that are not publicly traded.
- Business Assets - these are assets owned by businesses such as equipment, vehicles, and technology.
- Retirement Assets - these are assets such as 401(k) accounts, IRAs, and other retirement accounts that are used to save for retirement.
- Insurance Assets - these are assets such as life insurance policies, annuities, and other insurance products that are used to protect and provide financial security.
In conclusion, there are several other approaches related to personal assets, such as financial assets, real estate assets, private equity assets, business assets, retirement assets, and insurance assets. Each of these assets can be used to generate income, provide financial security, or used as long-term investments.
|Personal assets — recommended articles|
|External sources of finance — Classification of financial markets — Cash reserves — Core Deposits — Investment product — Capital property — Assets funding strategy — Quoted investments — Investment and financing|
- Angus R., (2017), Personal Assets Trust PLC, "Quarterly report" No. 86
- Moon J., (2010),Small Business Finance and Personal Assets , "Community Investments", Volume 21, Issue 3, p. 9-10
- Szathmary L., Boc A., Valtchev P., Makarenkov V., (2018), Assets Evolution: A new free of charge web server application for a real-time tracking of personal investments and net worth Universite du Quebec a Montreal
Author: Karolina Knapik