What are Financial Assets?
These are intangible kind of assets which will derive the value of a claim that is contractual. Under such assets includes bonds, stocks and bank deposits. These assets are liquid form of assets which can be traded off on the financial markets such as real estate or land. Others can describe it as contractual right that agrees upon receiving monetary cash from other individual or entity in exchange of the financial liabilities or assets. Others define it as simply a cash equivalent or cash per se.
What are the types of Financial Assets?
There are actually a lot of types of financial assets that you can actually acquire depending on your choice and financial capability. The following are some common and known financial assets:
Shares
These can either be foreign or domestic securities wherein equity interest especially in a public limited kind of company.
Savings deposits
These pertain to monetary amount that is being deposited in the banks. It is not being intended for any kind of payments or whatsoever. It may have an issuance of bank book for these kinds of deposits.
Investment funds
These are funds that are being managed by investment trust companies like real estate funds, money market funds, pension funds, share based funds and the like.
Certificate deposit
These are abbreviated as CD and it is merely an agreement between a bank and an investor. The investor here agrees to keep a portion of money that is deposited in the bank in return with an interest rate. Since it is locked in a period of time agreed upon, the interest rate may be high. If for any instance, the investor withdraws prior to the maturity date of the deposit, the interest rate is not given and the investor is being subjected to penalties in terms of finances are concerned.
Bonds
These types of assets are being sold to governments or corporations to aid in short term projects. These are legal document that has detailed monetary amount that and debtor borrowed and the agreed time of payment. Here, it represents an agreed interest rate between the lender and creditor in addition to the original borrowed sum of money.
How can you protect your Financial Assets?
Money is important, it is earned and can’t be seen anywhere. At times like these, we do not know where we can get the financial aid whenever disaster strikes in. You need to know how you can protect your financial assets. The following are effective tips:
Be able to hire a trusted financial advisor or estate planning lawyer
Estate planning is a critical planning to begin with. It is convertible to a large net worth. When you have such, you need to have a trusted financial advisor or estate planning lawyer. They will guide you in finding the right and legal ways to avoid paying high amount of taxes on a particular estate.
Invest in a virtual identity theft protection program
Identity theft is a crime that is affecting both the virtual and real world. Online identity theft protection program will in return protect you in such incidence. You won’t worry anymore whether your account is stolen by another unidentified person claiming to be you.
Have a physical alarm system inside your house
When dealing with physical property of the rich persons. You need to secure yourself with a physical alarm system inside your house. It can be advantageous on your part as you will never get worried when outsider persons will get inside your home without prior notice.