Two Types of Assets Anyone Can Acquire In Canada

Having assets is a very good way of guaranteeing your future. An asset is anything you own that you can sell for its monetary value. Therefore, they include things such as land, building and businesses and they exclude things such as your car, your television, the house you have to pay a mortgage on, heating and tax for.

Regardless of your socioeconomic status, it is possible to acquire an asset. All assets come with a level of risk however, the risks differ from one to the other. Therefore, it is possible for you to get an asset that comes with a level of risk you believe you can manage.

In Canada where most households are said to be living in debt, acquiring assets is one way to ensure that every year your household is making more money than is being used. A few assets you can acquire include;

#1. Paper Assets

Paper assets include stocks, bonds, Exchange-traded Funds (ETF) or Exchange-traded Notes (ETN) i.e. commodities such as crude oil, gold, and silver. People buy paper assets regularly mostly because they have an easy cash flow and are very liquid (they are easy to buy and easy to sell) as well as. Paper assets are sometimes unpredictable this is because you actually have no control over how much money you make through them or minimizing losses and maximizing profits. It is, therefore, important to do your research before buying these assets, as well as get a good and trustworthy financial adviser.

#2. Real Estate

This involves acquiring lands, businesses, and properties as assets. This is probably one that needs a lot of research and learning however these usually pay off well. Land assets are loved by many people because you can borrow against them, you can buy it with someone else’s money (use leverage) and increase your returns. In addition, you have more control over them i.e. you are able to maximize your profits and minimize your loss. Realize that when you have more debt than returns you turn your land or property into a liability.

Conclusion

It is never too early nor too late to acquire an asset. Therefore, now is a great time to start acquiring your assets. Before investing in anything, be sure to do your research about and if possible get professional advice. Remember that when it comes to investments, there is always a risk turning these risks into an advantage is paramount to making sure your asset doesn’t become a liability.