Assets Vs. Investments: How To Tell The Difference

Last weekend, I had a great conversation about investments with some friends. They finally realized that there is a big distinction between assets & investments. While they’d never thought about those differences before, it occurred to me that most people haven’t thought about them either.  I’m always surprised when somebody justifies a purchase with the term, “It’s an investment”.

Assets & Investments are like Apples & Oranges! Learn more at www.DiscreetInvestors.com/blog/assets-vs-investments/
“Oh, I buy expensive watches. They’ll be worth more in 20 years” a new friend said to me. “Buy a classic car – it’ll hold it’s value” was something I’ve heard before. Or, “I’m buying and holding on to great musical equipment like microphones, because good gear is always going to be good gear” was another comment. These bright, clever, and driven people claimed that all were good investments. But they hadn’t thought about it from the correct vantage point.  If they had, they’d see apples and oranges…

Conservative? How 2 or 3 Could Change It All…

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While vacationing in Skaneateles, NY with my family last month, I was chatting with my cousin about the return his financial planner has been getting for him.  When he said “5%-8%” I immediately thought, “Yup. That’s what EVERYONE says when I ask about their planner and the return they usually get for their clients.” He used the phrase, “It’s a conservative approach”. I’ve heard it before. It’s what most people think and do: Put your money with the planner, let it sit for 20 or 30 years, then retire, right??  Not so fast…