Tangible Asset Management
Building Wealth With Tangible Asset Investments
The basic idea of investing is to put your money into something that creates more money. It’s putting your money to work for you so that, ideally, one day you don’t have to work so hard for it.
One great way to do this is by investing in tangible assets. These are physical items that can increase in value over time. For example, a collectible piece of art typically appreciates over time, so you can later sell it for more than you paid for it.
Other common types of tangible assets include real estate, electronics, furniture, antiques, cash, cash equivalents that you can liquidate, such as CDs and short-term securities. Many other items fall into the category of tangible asset investments, but these are the most common.
As with any investment, it’s important to know what you are getting into. While tangible assets have a great deal of potential for wealth building, some may depreciate over time.
Consider vehicles, for example. A car is a tangible asset. You can buy and sell cars, but most are not ideal for making a big profit. Vehicles typically depreciate when you take them off of the car lot, and they continue to depreciate over time.
It’s unlikely that you will recoup all of your money, let alone make a decent profit when you sell. Some antique cars, however, are a different story. If they are in good shape and you find the right collector, you can make a good profit down the line.
In short, one of the most important keys to building wealth with tangible assets is knowing where to put your money. Other keys are knowing how long to hold onto them, when to sell, and who to sell them to. And, for this, having a tangible assets advisor can go a long way.
Whether you currently invest or are looking to get started, tangible asset management is a great option for you. Contact our team at Tangible Asset Management Solutions today to get started.