Types of financial assets: Learn how to leverage them

 Have you ever stopped to think that each asset class plays a better role in an investment portfolio? To make a simple analogy, an asset is like a tool and so is it essential to know how to use this tool in the best way possible.

A well diversified investment portfolio should have at least three types of assets. Income generation, growth and financial reserve.

There is no very clear rule that exactly separates each type of asset according to its best use, but with a little observation you will notice that each asset class plays a better role.


Financial reserve assets

Financial reserve assets

Reserve assets are generally those linked to fixed income. They have high liquidity, but generally will have little income, especially going forward with the current policy of reducing interest rates.

Do not stop them much longer than necessary for emergencies or whatever is being “stored” for a specific short term purpose.


Growth Assets

financial loan

Growth assets are those that have higher volatility in the short term, but in the long term will provide further growth of their equity. Good company stocks or even good ETFs are good asset growth assets.

Anyone who has time to reach the desired goals should not care much about the negative swings of these assets in the short term.

These swings are great opportunities to buy good assets (as long as you’ve done a good analysis and make sure it’s really a good asset) for little money.


Income Generating Assets

Income Generating Assets

Income-generating assets are those that provide the investor with periodic income. Real estate leased to third parties or, more intelligently, real estate funds are excellent income generators.

Shares of good dividend-paying companies also fit this profile. These assets are variable income assets and are therefore also subject to fluctuation.

However, more important than the value of shares or shares of these assets is the income they provide, because this income is the main objective of this type of investment.


Asset Types, Goals, and Deadlines

money loan

These are simple concepts, but many people put them aside and do not note these details when investing.

It is common to find people who are raising money for a short term goal and for lack of information and knowledge put that money into equity assets and therefore risk being in a period of negative swing in the moment they need the money. money

Or people who are investing for retirement in the long run and put all their money into fixed income assets and thus lose the earning potential that a stock investment or ETFs could generate over a longer period of time.

Diversify your assets into these three classes. Have an emergency reserve, have assets that are more likely to provide equity growth, and have assets that are good income earners.

According to your strategy, objectives and observing the “true vocation” of each asset class, it is easy to balance your portfolio to better achieve the desired results.

Credit and Divorce: What Happens After Separation?

Following a recent divorce, you are wondering what will happen to the private loan contracted while you were still married or married? Can banks require you to pay monthly payments and if so, to what extent? Our explanations and advice.


A more common situation than it seems

A more common situation than it seems

It’s a fact, divorces are more and more common in Switzerland. The latest statistics (2016) show that more than 40% of marriages end in divorce! Knowing that many households incur at one time a debt linked to a consumer credit, the case where a divorced couple ends up with a loan to repay is less rare than it seems.


Who should repay the credit?

credit loan

In this kind of situation, the legal obligation to finish paying the monthly payments will then fall to the person who signed the contract. Indeed, in the case of a consumer credit contract, only one person signs the said contract, even if the income of the two spouses is examined. It is this person who will have to repay the loan in the event of separation or divorce.


If you have not signed the contract …

credit signed

If you are not the person signing the contract, the bank cannot in any case require you to repay the loan: it is simply not your responsibility. In the event of non-reimbursem then, it is your ex-spouse who is exposed to the various problems which may follow: reminders, lawsuits, ZEK codes, etc.


If you signed the contract …

divorce loan

In this case, it is up to you to repay the rest of the amount related to the loan, this even if the money obtained at the conclusion of the contract was mainly used for your ex-spouse. The only exception concerns the use of the amount obtained for the good of the family.


Beware of exceptions

divorce loan

If it is that the loan amount was used for the good of the family, then the two ex-spouses must repay the credit. Only a judgment of the court can then be authentic in this kind of situation. For example, the case arises if the credit was used for the purchase of a vehicle, renovation of a house, etc.


What to do if in doubt?

credit loan

If you obtained your credit through a specialized agency like Goodlink Credit, which offers credits to married couples, you can contact them to explain your situation and find out the procedures to follow. If necessary, you can also contact your lawyer if you have the possibility.