You’ve worked hard, saved diligently, and now you’re stepping into retirement – or maybe you’re already there. But as you change AND the world around you continues to change, it might be time to fold in some new knowledge!
One of the smartest things you can do right now? Understand the difference between real and financial assets – and how that affects your long-term security.
Why This Matters Now
If you’re like many women entering retirement, your primary concern is simple: Will my money last?
You’re not alone. Managing your own finances can feel empowering – but also overwhelming – especially when headlines keep shouting about inflation, interest rates, and market volatility.
Knowing the difference between real assets and financial assets isn’t just technical jargon. It’s a practical skill that can help you:
- Make better decisions about what to keep, sell, or draw from.
- Protect your buying power over time.
- Prioritize which assets to use (or hold) if you should need cash.
- Spend, save, and plan in alignment with your values and goals.
Let’s Break It Down
Real Assets
Think: physical, tangible things you can touch.
Examples: real estate, vehicles, land, gold, jewelry
These real (tangible) assets will often hold value over time, are not often easy to sell (less liquid), and can rise in value along with inflation.
Financial Assets
Think: pieces of paper (or digital records) that represent money or value.
Examples: stocks, bonds, retirement accounts, mutual funds, cash
These assets are easier to sell, or in the case of cash, trade for goods or services. The value of these assets may change more often (sometimes many times a day).
How This Shows Up in Real Life
Imagine you need $10,000 for an unexpected medical expense. Should you sell stock? Dip into your emergency fund? Refinance your home?
Understanding which assets are liquid, and which are better to hold during inflation, helps you:
- Avoid unnecessary taxes or penalties.
- Protect assets that are likely to grow in value.
- Feel more confident in your choices.
Try This: Quick Asset Inventory
Use this simple worksheet to get clear on what you have – and how you might prioritize it.
| Type | Asset Example | Liquid? | Keep it, Use First, Use Later? | Notes |
| Real Asset | Condo | No | Keep | May appreciate, rental? |
| Financial Asset | Roth IRA | Maybe | Use Later | Tax benefits |
| Financial Asset | Vacation savings | Yes | Use First | Immediate needs |
| Real Asset | Gold jewelry | No | Keep or Sell? | Sentimental? |
Take a Few Minutes of Action!
Take 20 minutes this week to fill out a quick asset inventory like the one above.
For each asset, ask yourself:
- Is this easy to access if I need it?
- Is it likely to hold its value?
- What role does it play in my bigger picture?
You don’t need to do anything with these assets, this is just about knowing what your priorities are and what your options are!
Final Thoughts
Understanding what kinds of assets you have (and how to use them in accordance with YOUR values) is just the next smart step in protecting your future.
You’ve got this. Need a second opinion or another perspective? Reach out to a trusted financial advisor or financial coach!
Let’s Have a Conversation:
Do you have a full list of your assets – real and financial? Have you considered under what circumstances you are to use each?
