10 Examples of Appreciating Assets That Build Your Net Worth
Your net worth is the value of all the non-financial and financial assets that you currently own minus the value of any of your current outstanding liabilities.
1. Real Estate
Appreciating Assets To Build Your Net Worth
The goal for real estate to be an appreciating asset is to hold on long-term, so that years later the value has jumped significantly.
2. Real Estate Investment Trusts (REITs)
Appreciating Assets To Build Your Net Worth
These income-producing trusts provide the investor with a steady stream of dividends typically from commercial real estate and apartment buildings.
3. Stocks
Appreciating Assets To Build Your Net Worth
When you invest in stocks, you take part in the ownership of a company in order to generate dividends and to increase your share price over time.
4. Bonds
Appreciating Assets To Build Your Net Worth
A bond is a form of debt that you can purchase as mutual funds or even privately in the form of a loan to a company or the government.
5. Private Equity
Appreciating Assets To Build Your Net Worth
Private equity is simply when you invest and take an ownership stake in a private business, like a start-up.
6. Certificates of Deposits (CDs)
Appreciating Assets To Build Your Net Worth
These are similar to bonds in a way, as it is low-risk and has much less risk of loss compared to stocks or real estate. However, you can also expect lower returns.
7. Savings Accounts
Appreciating Assets To Build Your Net Worth
Your savings account is one of the safest appreciating assets for your money. The challenge is many banks are offering fractions of percents when it comes to interest rates.
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