are there any other assets besides high interest cd's and savings accounts that wont ever become a liability?
what assets do you have?
Thanks in advance
2006-12-01 08:51:27 · 4 answers · asked by fat85crxzc 2 in Business & Finance ➔ Personal Finance
Invest in a house. You can live in it, or rent it out & have someone pay your mortgage on it!
2006-12-01 09:01:00 · answer #1 · answered by angeeland 2 · 0⤊ 0⤋
High interest CD's and savings accounts are a liability because they don't pay enough interest to keep up with inflation. Such investments are OK for you short term cash needs.
In order to have your investments get you ahead of inflation you need to take more risk.
Real estate and stocks and bonds are vehicles that over time will return more than the inflation rate. These investments also pay dividends and can result in long term capital gain. These income items are tax favored because they are subject to a 15% tax rate rather than your regular tax rate.
You can be more or less risky in these investments by buying such investments in an educated and prudent manner
2006-12-01 09:20:57 · answer #2 · answered by waggy_33 6 · 0⤊ 0⤋
IRA Roth Account - You put the money in after the tax, so when you take it out, it's tax free, even if you take it out as a lump sum.
2006-12-01 09:00:02 · answer #3 · answered by FeelingPurple 2 · 0⤊ 0⤋
real estate (depending on where you are investing)
2006-12-01 08:56:55 · answer #4 · answered by FeedTheWorld! 1 · 0⤊ 0⤋