top of page
Open Site Navigation

What Are Fixed Assets?

It is important for investors to understand the ways fixed assets can be beneficial for tax purposes and wealth building.


Typically, fixed assets are categorized for businesses. They’re tangible items that can generate revenue over a period of time. For businesses, this can include equipment, furniture, computers, and even intangible items such as patents or trademarks.


Can Individuals Own Fixed Assets?


Absolutely. Individuals can (and should) own these types of assets.


For investors, this can include vehicles, land, luxury goods, and certain types of investments that are unaffected by market volatility.


In my experience, it’s absolutely crucial to include fixed assets in your personal portfolio.


For decades we’ve been instructed to invest in the stock market and save for retirement in a 401k or IRA.

Rarely were we told to acquire fixed assets, too.


For example, home ownership and overfunded life insurance policies were relatively easy to acquire for generations before us. But for Millenials and Gen Xers, it takes more planning and sacrifice than ever to accumulate wealth.


So consider this article my way of telling you to start building your fixed asset portfolio, now.


Not in the market for a home? No problem. There are other options for non-business owners.


Types of Fixed Assets

Here’s a list of fixed assets for individuals. You can work toward acquiring these without spending hundreds of thousands:

  • Government I-bonds: These are fixed investments with a guaranteed rate of return. No guessing, no risk.

  • A vehicle with high resale value: If you need a car, invest in one that won’t depreciate too much.

  • A luxury watch or handbag: The luxury goods market is always strong. Brands like Rolex, Patek Philipe, Hermes and Chanel are more likely to hold - and sometimes increase - in value.

  • An Overfunded Life Insurance Policy: Not all insurance is the same. If you have a family or business to protect, but you also would like to enjoy use of the value while you are living, opt specifically for permanent insurance. Generally, its value holds, and you can overfund it to generate a guaranteed rate of return (like I-bonds).


Why Do I Need Fixed Assets?

In short, fixed assets are an important part of any diversified portfolio because you should not rely entirely on the stock market or crypto, for example.


These types of assets provide peace of mind and guaranteed security when other investments aren’t performing well.


I want to be clear, I’m not suggesting you take all your money and buy watches.


I am suggesting you keep spending time researching all of your options - fixed assets included.


Questions about how I leverage fixed assets? Reach out any time: email me at jeff@enhancedfunding.com, or give us a call at 773-318-9608.


Contact

901 N Lake Destiny Drive, STE 380

Maitland, FL 32751

Enhanced Funding Office Location

Subscribe

Be the first to hear about industry news and stay ahead of the curve on all things premium financing + tax and retirement planning.

bottom of page