The Old Rules: Reduce Your Expenses
The litigation explosion are forcing professionals and small business owners to focus on ways/strategies to protect their savings, investments and other accumulated assets that may become attractive to potential contingent fee trial lawyers.
Assets and Liabilities are two terms that I am sure that you have heard before. They are usually associated with the balance sheet. On the balance sheet assets are what you own and liabilities are what you owe to others. In determining your net worth or the net worth of your company you would subtract the value of your liabilities from the value of your assets. The number that you come up with is what is called your net worth. My definitions for the terms assets and liabilities are a little easier to understand and I will give them to you now.
Rather than following the herd, the independent, self-directed investor relies on good research and due diligence before taking a position. However, as you grow older, the objectives for those accumulated assets change. That means re-adjusting the allocation of your nest egg dollars to meet the changes that come with growing grayer.
You have worked your entire life accumulating assets. These hard earned achievements can be lost in a short period of time if they are not protected. If you are sued, all of your assets are at risk. They are also at risk if you file for bankruptcy. Seeing as the best thing to do is to protect those assets, lawmakers have passed various acts that will protect certain assets.
I wanted to share a few ideas about asset protection to help you on your way to success in your investing career. You don't have to be rich to start thinking about and implementing asset protection strategies. It is better to start and get in the habit while the amounts are small. This is similar to tithing.
In order to understand what is accumulated depreciation and how it is accounted for it is essential to remember that this concept is closely related with the concept of long-term assets. This article is aimed to provide insights into the definition of long-term assets and related accumulated depreciation definition.
I. Definition of a Fixed Asset