October 28, 2022 - By: Brandon Jenkins

6 Financial Asset Principles I Wish I Focused On 20 Years Ago

If I could go back in time, I would immediately focus on these six principles of financial assets. (I would have kept much more of what I earned if I did).

1. Risk

Specifically, I would ask about two aspects of risk when choosing an asset.

  • What are the chances of the value of this asset going to zero?
  • Will the value of my asset be there when I need it?

2. Control

Control empowers you to adapt to changing market conditions. Consider these questions.

  • Will I have any control over the management and performance of this asset?
  • Do I have any control over the terms of accessing the value of this asset?

3. Leverage

Leveraging the asset value rather than withdrawing capital is more effective. Why?

  • Allows the underlying capital to enjoy uninterrupted compound growth.
  • Access to financing allows you to weather the storm in down markets.

4. Options

Assets that give you options build resilience. Ask yourself these questions.

  • How might I use this asset differently when the market shifts?
  • In what ways can I extract value from this asset when needed?

5. Guarantees

Guarantees provide peace of mind and are a must for my Tier One Assets.

Consider these questions.

  • Are there any guarantees against losing my principal?
  • Is the asset value guaranteed to be there when I need it in the future?

6. Cash Flow

Cash flow sustains everything from your lifestyle to your business operations, much like water sustains life.

When deciding where to direct your capital, ask these questions.

  • Does this asset produce cash flow?
  • How might I turn this asset into cash flow in the future?

On which financial asset principles do you focus? Do you have someone on your team helping you with these concepts? If not, please reach out to us at https://www.tieronelifeinsurance.com/contact/