Build Wealth Wisely: Real Assets vs. Financial Assets

Real assets are tangible, physical assets, while financial assets are intangible, paper-based investments.

Real assets include real estate, gold, and art, while financial assets include stocks, bonds, and mutual funds.

With real assets, you have direct ownership and control, whereas financial assets represent a claim on ownership.

Real assets tend to appreciate in value over time, while financial assets can fluctuate.

Financial assets are generally more liquid than real assets.

Real assets often carry less risk than financial assets.

Real assets can provide rental income or dividends, while financial assets offer interest or capital gains.

Real assets tend to perform better during inflationary periods.

A balanced portfolio should include both real and financial assets.