Assets

FiscalFox

Ack...my first post on this forum and im already asking for advice and nuggets of information. But please go easy/get tough on me as i wrote out a really long post only for it to be swallowed in the depths of cyberspace. This is a dishevelled 2nd attempt.

Okay...i am a student who has managed to stay out of debt by living at home and having my ironing done by my long suffering Mum. I invested my student loan into a bond to keep it ticking over.

After graduating/wangling college i decided i should learn about money as i realised i knew nothing except about spending it! Not a bean!

I read the books "Rich Dad, Poor Dad" and "The Millionaire Next Door", and these titles really opened my eyes & helped me realise the difference between an asset and a liability; they also taught me the path to wealth is to be frugal. So now i am.

Anyhow, from what i gather; i understand that non-liquid assets are a good way to invest since thay are non-realised income and the tax man is kept a little more at bay. I also am a hands-on guy and have no real passion for the (liquid) stock market.

As i understand it, anything that appreciates in value, such as art, property, land, businesses etc., qualify as non-realised income.

I want to invest in non-liquid assets and eventually gain most of my income from them. The only problem is i don't actually have any!

I figure that one should invest in what he knows, the trouble being right now is im not an expert in any field. Therefore, i am happy to learn about anything that will make me cash, be it historical art, property or the Bratislavian leather industry! I love coastline, but i don't think much of it is for sale (or in my price range...).

I therefore wondered if anyone would be kind enough to make any suggestions to a good field to invest in, or could recommend any good books on this subject; as im a bit stumped.


F.F.

deemy2004

Houses are the largest category of non liquid assets.

Also bare in mind that the more illiquid a market is the harder it will be to sell , especially in a time of uncertainty

cheerfulcat

Hi, Fiscal Fox,

Both of those books are American, so while the principle of frugality ( Millionaire Next Door is particularly interesting on this front ) is sound, the investing advice is not necessarily applicable here, particularly since the US tax regime is more favourable to small businesses than that in the UK..

On the subject of illiquid assets; for the most part they don't provide an income, except for residential/commercial property. Or do you intend to buy and sell it? In which case the illiquidity could be a problem...also, the " unrealised income " is only that until you, er, realise it, at which point you may be liable to Capital Gains Tax. There will be further tax implications if you become a regular trader.

To be honest, FF, I think that anyone who is expert in any field can make money at it...it is the expertise which counts, not the subject.

Good luck!

Cheerfulcat

FiscalFox

Deemy2004/Cheerful Cat
Thank you both for your advice! I really noticed a lot of books cater for the US market. I'm still looking for one that would apply here (aside from this funky site).

cheerfulcat

Hi, Fiscal Fox,

You could check out Alvin Hall's book, Your Money or Your Life. I have also found the Which? guide, Which? Way to Save and Invest, very useful. Both books are UK based. The Motley Fool has a bookshop, run by Global Investor; might be worth a browse

http://books.global-investor.com/pages/home.htm?NavLoc=LN&NavFrom=home&NavTo=bookshop&ginPtrCode=11128

And a Books About Investing board

http://boards.fool.co.uk/Messages.asp?mid=9352334&bid=50106

HTH

Cheerfulcat

Darryl

As a student you must have experience of wine... as long as you don't drink it, certain bottles can be a good investment...

Bogof_Babe

You could mug up on antiques and what they call "collectables" (think bakelite telephones, lava lamps etc.), or maybe just specialising in one aspect like brass or ceramics, then hit the car boot sales every weekend.

This would provide you with an absorbing interest and hobby, as well as the possible financial jackpot!

FiscalFox

Hey CC
As fate would have it i picked up Alvin Hall's book whilst fishing round Ottakars. In the end i decided to buy "Rich Dad 2: Cash Quadrant" and "Who Moved my Cheese" (i got tem cheap, online of course!)

I will certainly look at that title more throughly (i hadn't read this thread beforehand) and as soon as i get thru these lastest tomes of knowledge. Thank you very much for the recommendation and helpful links!

Hey Daryl;
Thanks for the idea (re: wine); i almost decided to study with a professor of viticulture at uni based on a similar thought. In the end, i just couldn't get excited enough about the subject. That said, i'm more into whisky!

Hey Bogof_Babe;
Yeah, i am giving this idea thought (i used to be an expert of Dandy & Beano comics when i was a kid). Though i think i might be more interested in buying/selling land than products per se...thanks for giving my brain a work out!!