What Is An Asset?

Ask The Legal & Financial Planner Gaithersburg MD Relies Upon

If you’ve been looking for a legal and financial advisor Gaithersburg MD residents trust, you may have been searching for information about assets. This term can be confusing, especially for individuals who aren’t familiar with the investing industry.

If you’ve heard the term “asset” before but you aren’t sure how assets might be affecting your own finances — there’s no need to worry. Here’s some basic information:

First, what is an asset?

An asset is an economic resource that is owned by an individual or corporation that has a positive value. Assets are used to generate income or help the owner benefit in some way. Assets are valuable, and though not every asset has a specific value, every asset is important with your legal and financial planning.

Real Assets vs. Financial Assets

There are two types of assets that a trusted legal and financial advisor Gaithersburg MD has to offer might work with: real assets and legal and financial assets. It’s important to understand the differences between both types in order to use assets effectively when planning out your finances. Here’s a quick look at what both types of assets might entail.

Real assets are physical things that have a specific value. Real assets can include land, property, machinery, or equipment. These assets can directly generate income either by being used in the creation of a product or by being sold for a monetary value. Real assets are often described as the tangible things a person owns.

As an experienced Gaithersburg MD legal and financial advisor might explain, real assets are tangible in nature but can change value very easily — sometimes even more easily than legal and financial assets. A plot of land, for example, can increase in value just as easily as it can decrease in value; the way its value fluctuates over time will depend on several factors.

Financial assets do not have a specific worth — but they can still be very important for determining a person’s legal and financial future, as an experienced legal and financial advisor Gaithersburg MD trusts might attest. Financial assets are not physical items; they retain value through a general claim. Financial assets include:

  • Bank deposits
  • Stocks
  • Bonds
  • Patents
  • Copyrights
  • Trademarks
  • Brand recognition
  • Other types of intellectual property with legal and financial value

While these intangible assets don’t have the natural physical value, they can be very valuable for the future of your finances.

Working With a Financial Planner Gaithersburg MD Trusts

Accurately evaluating assets is an integral part of planning for your future legal and financial state. A trusted legal and financial advisor in Gaithersburg MD can help you properly organize and assess the values of your assets. The current value of your assets has a significant effect on the plans for your future finances. Successful investment strategies will likely consider all assets and determine the current value as well as the potential for growth and development. Predicting asset values may help establish a person’s legal and financial goals and the feasibility with which they can be met.

If you need more information about assets, schedule a meeting with a top legal and financial advisor Gaithersburg MD can provide.