hat are the classes of wealth building assets that are affordable and effective for a family to purchase with their current household income and savings? The typical appreciating assets people think of purchasing as a wealth-building vehicle include: Intangible assets such as stocks, bonds, ETF, 401(k) s, IRAs and insurance. Tangible asset classes are primarily real estate and businesses.
However, the challenge and barrier to purchasing these tangible assets classes is they usually have higher up front costs thus requiring the use of credit and debt. They are therefore often identified by families as having a higher barrier for entry and greater potential for risk of failure. These perceptions often lead to stagnation and procrastination.
In addition, another primary reason why most families do not save enough, or invest little is that they have been conditioned to believe they will have to sacrifice their current lifestyle standard. Therefore, they act on the notion they do not have enough “extra” money to save and invest. The other reason they cant get started acquiring assets is they feel they can’t succeed until they save enough money to make a “good” down payment on owning valuable assets – tangible or intangible.