Why is it so hard to keep your assets safe?
Updated May 11, 2018 12:24:22 A new report has revealed that the value of a person’s assets can have a profound impact on their ability to survive financially.
Key points: Asset prices can have an impact on your ability to make a livingAsset prices are not always correlated with inflation or economic growthAsset prices can be linked to the health of an asset or asset classAsset prices in Australia are volatile and can have unpredictable returnsAsset prices vary widely across the economyAsset prices depend on a range of factors including how much an asset is worth, its age and the state of the economyThe report by the Asset Price Index, an independent agency, found that an individual’s total asset value, including their savings, stocks, property, savings bonds and vehicles, can have significant impacts on their financial wellbeing.
“An asset’s value is determined by many factors, including its age, the strength of the economic environment, and whether or not it is being held for investment,” the report said.
It said that “relative to an asset’s market value, asset prices can fluctuate and may have a significant impact on the value you can make a profit on.
There are also people who are living in a lower income bracket, which may also affect an asset value.””
A family’s net worth and savings can be affected by a person in a different job, where they are not working full time, or in an unemployment position.
There are also people who are living in a lower income bracket, which may also affect an asset value.”
A higher level of debt, particularly to pay for education, may also be a factor in determining an asset price,” it said.
While an individual who invests their entire income into a particular asset can be considered a “safe” asset, a person whose asset values are not correlated with economic activity and inflation could face a “risky” situation.”
If you own a home, you’re more likely to have a good asset, but a high proportion of the value is tied to your house,” the authors of the report, including the chief executive of the Australian Property Council, said.”
It’s the same if you’re in a position where your employer pays you a salary and you’re not working.
If you’re going into debt, it’s more likely that you’ll be in a precarious position.
“There are many people who will have an asset that they can’t afford to lose, but they have to pay a lot of money to buy it back.”
The study found that the average Australian has assets worth between $100,000 and $200,000.
Some of those assets are more “stable”, with a relatively stable price and an asset quality that is comparable to that of other assets, such as a home.
Others are less stable, with a price and quality that are higher than other assets.
The average person with a $150,000 asset has an average annual household income of $57,600.
But that means the average person has an asset worth $10,000 less than someone with a household income worth $200: a $100 asset.
For the top 20 percent of Australian households, an average asset is $2,000 lower than for the bottom 20 percent, the report found.
An individual with an average assets worth $20,000 could see their assets drop from $100 to $200 over the course of their lifetime.
In other words, an individual with a low assets value could have an annual income of just $20 a year, while an individual whose assets are $20 million higher than their income could have annual incomes of $250 million over their lifetime and have a net worth of $500 billion.
A “riskier” situation, the study found, is where a person has assets that are less secure and their asset values drop dramatically.
“When asset prices are highly correlated with price volatility and economic conditions, it is difficult to understand the value an individual may be able to earn from an asset, and thus the level of risk associated with holding such an asset,” the researchers said.
It said it was important that people understood that they were not necessarily “protected” by their assets, because the values of assets were linked to inflation and other factors.
“[However] it is also important to understand that there are many factors that influence the value a person can make from an investment, and these factors may change over time, including a person moving from job to job or a person entering or exiting a more precarious position in their life.”
The report said that an average person could earn a profit of $300 a year from a $200 investment.
However, that would mean an individual could lose money on their investment within six years.