In this article we will be breaking down the dimensions of an asset. The core two dimensions of an asset are the Income the asset generates together with the asset’s Capital Value and worth.
When viewing the Income dimension of an asset, we need to outline the three main Income producing asset categories:
– Property: generating an income through the rental market
– Shares: generating an income by paying dividends through the share market
– Cash: will generate an income by paying interest
When focusing on the Capital Value dimension of an asset it is worth noting:
– Property: the true capital value only known when the property
– Shares: The capital value of a share is known on any given weekday
– Cash: The capital value of cash does not rise or fall
At Income Solutions we believe that people focus too much on the Capital Value of an asset or investment and not enough on the assets Income producing capabilities.
If you concentrate on the first dimension of the asset, the Income it produces, you will have a far greater chance of building a Capital Base that will provide you with an Income to support your life…. forever!
For further details on the Dimensions of an Asset watch the following video by Income Solutions Advisor, David Ramsay: https://www.youtube.com/watch?v=AqlhNmYHjXw