Investment v asset

Matt's Avatar


30 Jun, 2022 11:43 AM

Since when has a property or any other infrastructure not been classed as an 'asset' ?

  1. 1 Posted by dwg on 30 Jun, 2022 11:54 AM

    dwg's Avatar

    I'm a fellow user.

    They are assets, so what is the issue?

  2. 2 Posted by Matt on 30 Jun, 2022 01:46 PM

    Matt's Avatar

    Precisely. So, with regard to the previous post by Shamsu - if your eyes haven't been drawn to it already - why the advice to create an investment account as opposed to an asset account?

  3. 3 Posted by Stuart Beesley ... on 30 Jun, 2022 02:34 PM

    Stuart Beesley (Mr Toolbox)'s Avatar

    That advice is using an investment account with a security (called ‘house’). By updating the fake security ‘price’ you update the asset value. This treats a house like a purchase of shares. It’s a trick, but it works. This way you do not have to record the unrealised gain(s) against a category.

    Using an asset account you simply add a txn for the increase, but the gain has to go against a category.

    Both will work.

  4. 4 Posted by Matt on 30 Jun, 2022 03:04 PM

    Matt's Avatar

    Understood and thanks for the advice!

  5. 5 Posted by aforkosh on 03 Jul, 2022 02:43 AM

    aforkosh's Avatar

    Because of the complexity of my investments, I created a separate base-level account set to keep detailed track of them, with the various types of accounts (taxable, tax-deferred, and tax-free) within that investment account set. In my current account set, I have an asset account corresponding to each of the accounts in the base-level investment account. (Note: in the investment account set, I have asset accounts corresponding to each account in the current account set that may be a source or target for transfers. However, the value is not kept current. Reliable asset values are only on in the current account set.)

    Weekly, I record the net change in value of each investment account in the appropriate asset account in the current account set, assigning the number to an 'Asset Changes'.

    So, at any time, I can quickly check my net worth via the current account set.

  6. System closed this discussion on 02 Oct, 2022 02:50 AM.

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