Thursday, January 13, 2011

Best Assets to Own

Which are the Best Assets to own? Everyday I receive this common query from many readers. So today let us discuss about ‘Best Assets to Own’.

Well, let me tell you that there is no as such rule in the Personal Finance or in this world that which assets are best to own. But I am giving you these suggestions according to my knowledge and experience. So it is quiet possible that some other Personal Finance or Investment Guru don’t agree with me.

Well, As a Rule of Thumb, “Best Assets to own are those Assets on which you have full or at least partial Control.”

Here are the example of Uncontrolled & Controlled Assets -

Uncontrolled Assets -
- Stocks
- Bonds
- Mutual Funds
- Real Estate Funds (ReeTs)

Controlled Assets -
- Private Businesses on which you have full control
- Private Equity in which you have at least some degree of management control
- Real Estate
- Blogs
- Websites
- Gold
- Art
- Web Properties

According to my knowledge and experience, only those assets can give you more comfort & security on which you have a full control. Unfortunately, most of the middle class people invest in stocks and mutual funds. But these are the assets on which you don’t have any control so you just have to buy, hold and pray. Once you buy it, you have to pray the god that – Oh!! God when will the price go up? When will the stock market goes up?

But if you own a Controlled Asset than the scenario is different. In case of controlled Assets, you have mainly two types of Income.

01) Capital Gain
02) Cash Flow (Income from Asset such as Rental Income, Business Income, Blog Income, Google AdSense Income from your web properties…etc…)
In case of Un controlled Assets, you have only one type of income and that is Capital Gain.

Example -
Take the Example of this Blog. “My Journey To Billionaire Club” is a blog cum Internet Business. And I have a full Management Control over this Asset. Means I can sell this Blog to anyone at my WILL and I have a control over its Management so I have a control over its Income also.

Now right now when I am writing this article, the Valuation of this Blog is US $ 7339 (Rs. 3,66,000). Now suppose if the valuation goes down tomorrow than I don’t need to worry because I have a Management control over this blog so I can enjoy the steady Income from it.

The Same is true for Rental Properties. You have a control over its Rental Income so once you buy a Rental Property, you don’t have to worry about its valuation.
Now because of this Control over this Asset (This Blog), I don’t afraid of investing my time and money behind this Asset. Few weeks back I have spent Rs.20,000 behind SEO Article writers who will create a portfolio of 40 Search Engine Friendly Articles for me.

I also Invest money behind marketing of this Blog. But I am not afraid or feeling discomfort. The main problem with investing in stocks & mutual funds is that, you will never feel safety & comfort No matter how up the market is. Because you have no control over the management of the company which stock or mutual fund units you have bought. You will only have to be dependent on the Capital Gains & according to me that is extremely risky.

Right now I am feeling more secure and comfortable than my friends because I have invested my money in controlled Asset (This Blog) while my friends have invested their money in Stocks & Mutual Funds….!!!
So Now you understand Best Assets to Own?…!!!

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