Wealth Watch: Type of Assets

José Santiago Worldwide Asset Protection Specialist

José Santiago
Worldwide Asset Protection Specialist

By José Santiago

Did you know that people who protect themselves and their assets live on average 10 years longer, are happier and are more successful? Read on to know why…..

Answers you must have ready for your children and spouse.

When you are looking at your assets you should classify them because this is the way you can more accurately value them and in the process of protection you are guaranteed to have a fairer value to that.

In the precious article we asked you what do you consider to be your biggest asset? This was a little homework to make sure you are following us and if you do you might have an answer to that. There is no right or wrong to this question but you should consider review your perception if the answer you have is different from ours.

Most of the time when we are called upon to value something we tend to be biased and very rarely we give the fair value either to our asset or others. Here is the clue: we tend to value more things that we can touch and feel rather than the ones cannot. In reality things that we cannot touch or feel tend to be far more valuable. So the two types of assets are: tangible and intangible.

•    Tangible – the ones we can touch and feel – material things like property, jewelry, money, cars, land, boat, land, etc. They are easy to value because you can compare them easily and can also transact on them with relative ease. They are though the least valuable assets. They tend to have a shorter life span. You can take an insurance to protect this type of assets.

•    Intangible – you may feel it but hard to touch – These are harder to quantify the value, to put a dollar into them and if not impossible extremely hard to transact. They are more valuable and have usually a very long life span. In many cases replacement is nearly impossible. Do your reputation, integrity, life look like assets? If so, how do you value it on one side and protect it on another? They are assets and we can add some more like: values, relationship, honour, freedom, authority, trust, competence, etc, etc.

So, intangible assets helps you achieve tangible assets but tangible assets very hardly if ever can help you get the most of the intangible assets. We also tend to invest more in our tangible assets than intangible. The long term consequence is huge.

What do you consider to be your most valuable assets? Have you thought of it? Find out more below….

Money can replace tangible assets quite easily, however intangible assets are harder to replace (often impossible) and certainly if provisions are not made then negative impact is harder to convene. How can you take care of this? Loss of intangible assets most of the time have catastrophic consequences in tangible assets, meaning if tangible assets appear not to have been shielded than it is unimaginable the negative impact it might have.

To counter all the above you need to work on a strategy for medium to long term so then you are assured of the assets you require to survive. As a rule of thumb you need to have enough wealth to sustain you for at least 20 years at your standard of living if for whatever reason you stopped working today.

So, for instance you need 5,000 USD monthly to live meaning you must have accessible wealth of 1,200,000 today for this purpose. If you don’t then you are at risk.

While designing asset protection strategy there are many risks to take into consideration. What are they?

It is proven that if we invest in our intangible assets our tangible ones will grow exponentially.

Tell us your take on it. What is your opinion? Why would you think about asset protection? Good thing or bad?

Want to know more? Just ask! Email! Call! Skype! Tweet!

Do you know what your 28 biggest assets enemies are? Can only get 5? Next article….

Want to know more? Just ask! Email: editor@zambianeye.com

To be continued, 28 biggest enemies of your assets …