01 TURN YOUR ASSETS INTO A FORTUNE
Active, aggressive management of your assets requires a periodic review of each asset.
Your five primary considerations are:
1. SELL
Look at all of your assets, real property and personal. If you’re not using your boat or third car, convert it to cash and invest in income-producing property. Money sitting there, not being put to use, is worthless. Put it to work. Get yourself thinking like an investor, not a consumer.
2. HYPOTHECATE
If wanted, you can keep your asset – and raise cash for investment – by hypothecating or pledging the asset. This works well for assets you don’t want to sell, such as expensive jewelry or antique furniture. You can have your cake and eat it too. And, borrowed money is tax-free.
3. TRADE/EXCHANGE
Barter is most popular when cash is scarce or interest rates high. Consider whether any of your assets should be ones which will yield g·reater benefits. For example, someone might be willing to trade some income property for your third car or your professional services, etc.
4. HOLD
Holding an asset could be your best choice. But, be sure you’re not holding because of inertia or lack of review. If the asset is going up in value faste’r than the value is eaten up by inflation, then keep it. If the value is not keeping up with inflation, then sell it.
5. GIVE AWAY
A gift to your favorite charity or to a loved one can also benefit you, tax wise. See your tax accountant or attorney to find out exactly how to get the maximum WTite-off. Many times, a donation can lower your tax bracket and save you more than you give away.
