At the beginning.
What is an Asset?
So if you Google this question see below the results
According to Investopedia, you can see that an asset is anything of value or a resource of value that can be converted into cash. Individuals, companies, and governments own assets. For a company, an asset might generate revenue or the company might benefit in some way from owning or using the asset.
When discussing what personal assets are cash and cash equivalents, investments, personal property, and property and land. Personal property is also included such as cars, boats, jewelry, etc.
Well I like Robert Kiyosaki’s simple definition is anything that puts cash into your pocket. A liability is anything that takes money out of my pocket.
When we look at the definition when I hear something that puts money into my pocket means to me that it is happening without me having to sell the asset…Why?
Because, if I sell the asset to “convert to cash” guess what I don’t have anymore….the asset. So how does this benefit me?
What needs to be understood is what is the purpose of your asset? Why do you have this asset? Or why do you want this asset? Do you know what the rules and life cycle of your asset? Do you know how the asset performs in what we call the Economic Termites events?
If you don’t know the answer to any of these questions then you shouldn’t have that asset.
Feel free to EMAIL US or Phone at 833-872-3762
"Terra Firma Business and Financial Consultants, LLC is a comprehensive consulting firm. Our goal is to assist our clients in determining the appropriate planning needs for today with flexibility to help determine possible exit strategies in the future. Our main goal is to educate you on the necessary strategic plans and designs that are available today to assist you in meeting your goals. We bring our expertise to inform and educate on the strategies available within the guidelines of your goals and objectives. We want to help you protect what you’ve worked so hard to earn and we are dedicated to accomplishing this goal!
All materials provided or communicated are not to be intended to be used, nor can it be used by any taxpayer for the purpose of avoiding U.S. federal, state or local tax penalties. Any taxpayer should seek advice based on the taxpayer’s particular circumstances from their own legal and tax advisors. Terra Firma Business and Financial Consultants, LLC and its consultants and/or affiliates do not provide legal or tax advice.
NOTICE: Nothing in this message should be interpreted as a digital or electronic signature that can be used to form, execute, document, agree to, enter into, accept or authenticate a contract or legal document unless otherwise expressly stated herein. This message and any attached documents contain information from the sender that may be confidential and/or privileged in nature. This message and any attached documents are intended only for the use of the intended recipient and any applicable privileges are not waived by virtue of this having been sent by e-mail. If you are not the intended recipient, you may not save, read, copy, distribute, or use this information in any way or for any purpose. If you have received this transmission but are not the intended recipient, please notify the sender immediately by reply e-mail and then permanently delete this message and any attached documents.
IRS CIRCULAR 230 DISCLOSURE: United States Department of Treasury Regulation Circular 230 requires that I notify you that, with respect to Federal Tax penalties only, unless expressly stated otherwise above, (1) You cannot rely on this advice for protection against Federal tax; (2) nothing contained in this message was intended or written to be used, can be used by any taxpayer, or may be relied upon for the purpose of avoiding any federal tax penalty under the Internal Revenue Code; and (3) nothing contained in this message may be relied on to support the promotion or marketing of any Federal tax transaction or matter that may be subject to Federal tax penalties. Any taxpayer may seek advice based on the taxpayer’s particular circumstances from an independent tax advisor with respect to any Federal tax transaction or matter contained in this message as it relates to Federal tax penalties."