tag:infinitekind.tenderapp.com,2009-01-14:/discussions/investments/7028-investment-v-assetInfinite Kind: Discussion 2022-10-02T02:50:19Ztag:infinitekind.tenderapp.com,2009-01-14:Comment/548460022022-06-30T11:54:24Z2022-06-30T11:54:24ZInvestment v asset<div><p>I'm a fellow user.</p>
<p>They are assets, so what is the issue?</p></div>dwgtag:infinitekind.tenderapp.com,2009-01-14:Comment/548460022022-06-30T13:46:00Z2022-06-30T13:46:05ZInvestment v asset<div><p>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?</p></div>Matttag:infinitekind.tenderapp.com,2009-01-14:Comment/548460022022-06-30T14:34:10Z2022-06-30T14:34:10ZInvestment v asset<div><p>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.</p>
<p>Using an asset account you simply add a txn for the increase, but the gain has to go against a category.</p>
<p>Both will work.</p></div>Stuart Beesley (Mr Toolbox)tag:infinitekind.tenderapp.com,2009-01-14:Comment/548460022022-06-30T15:04:14Z2022-06-30T15:04:15ZInvestment v asset<div><p>Understood and thanks for the advice!</p></div>Matttag:infinitekind.tenderapp.com,2009-01-14:Comment/548460022022-07-03T02:43:56Z2022-07-03T02:43:56ZInvestment v asset<div><p>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.)</p>
<p>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'.</p>
<p>So, at any time, I can quickly check my net worth via the current account set.</p></div>aforkosh