Assets? Funds? Stocks? That could be a terrifying subject to talk about. Bet, most people would respond, “leave it to the professionals.” Without a doubt, it is a complex and risky industry.
As a novice asset owner, you might be anxious right now whether you should invest time and learn how to manage your assets or hire a financial manager to handle all of it.
Now the big question is, would it be advisable to manage your personal assets on your own? Yes and No.
Yes, you can manage your personal assets on your own. If you are confident enough in your skills and level of financial literacy, no one will stop you from handling everything yourself.
No, if you only have a general knowledge of managing your assets. For efficient and better results, it would be advisable to have a financial manager handle your assets, especially if you have high-value assets like minerals and land that professionals like Caple Royalty Mineral Management would efficiently handle.
But if you want to experiment and try to manage them on your own, you can still do so. Maybe you’ll get better along the way or not.
For starters, here are 2 basic steps in managing your personal assets:
1. Create a list of your identified assets
Personal assets are valuables that you own as an individual, and they can be identified as tangible or intangible. Examples of tangible assets are real estate, buildings, cars, and jewelry. For intangible assets, you have copyrights, trademarks, brands, patents, and goodwill. Common personal assets are cash and financial accounts that could be in the form of investments, franchises, and bank accounts.
You have to identify all of your properties and list them manually by paper or automatically by using software and tools. Nowadays, accounting software and tools are more reliable, convenient, and easier to track your personal assets. Most of these digital lists are in sheets and tables, which you can update and access anytime, anywhere.
Enumerate all of your belongings into the sheet, and make sure to include every detail like cost, value, date acquired, location, contacts, account numbers, titles, etc. This will serve as your inventory and documentation. Organize and arrange them in categories so it would be easier to sort out if you want to find anything.
2. Plan and protect your assets
Since sole proprietorship attracts possible lawsuits, it is essential to set up protective methods for your assets. You can do this by setting up the correct business entity as a corporation or limited liability company (LLC). With that, it won’t be easy for creditors to take the company and its assets from you.
Another method would be utilizing trust funds. This does not only future-proof your trustees and beneficiaries but also protects your assets from possible setbacks. You can choose which assets to distribute and whom to inherit. There are lesser taxes and less time consumed from undergoing court proceedings. This is like a barrier to ensuring that your wealth can be inherited and benefited from your family or trustees’ future generations.
Have a solid plan of your goals and preventive measures. If you want to invest, create a financial plan and prepare risks. If you want to do stock trading, sort out your assets and brace yourself for possible losses. Always have a countermeasure laid out for every goal that you want to achieve.
Research as much as possible. Understand everything comprehensively and be patient. Learning is a process and with asset management, you are bringing along with you greater risks. So take your time, and if you find yourself flailing, it is time to call for professionals to the rescue.