My mentor defines an asset as something that is putting money in your pocket on a monthly basis. A liability on the other hand takes money out.

With that in mind he asked me once if the stocks I owned we're an asset or a liability. I instantly said asset, but the more I thought about it, the more I wondered.

I decided to take a look at the stocks I had bought through the Stash app and I was surprised to find most of my stocks paid me 0 in dividends. I then found one that paid a small percentage in dividends but the expense for management of that stock was nearly double what it paid in dividends!

In my opinion, owning a stock in a company is not necessarily an "asset" especially since the price of stock fluctuates.

The only stocks I consider assets, and most of the ones I now invest in are dividend paying stocks only.

Interested to know if anyone else has an opinion on this?

 

Hi, I'm Jon Moore!

My goal is to Impact others and Create A Better Financial Future for all!

Feel free to reach out to me at any time with any questions or just to say hey!

Also, if you are interested, check out my Youtube Channel

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