(above).Tip: For easier reading, click (above).
You can create an asset account to track the value of all your personal assets, including:
Personal assets should not be confused with investment assets (Investments you own, such as stocks, bonds, mutual funds, CDs, T-bills, Money Market funds, and IRAs.). For investment assets such as stocks (Shares of ownership in a corporationÆs earnings, assets, and liabilities. Stockholders may receive dividends and can generally sell their shares at any time.), bonds (An agreement to borrow money, pay interest, and later repay money. Bonds are issued by the government and many businesses.), CDs (A certificate of deposit is a time-based deposit at a bank or savings and loan institution. When you buy a CD, you agree to leave your money in the bank for a specific period of time, ranging from 30 days to several years. In exchange, the bank guarantees you a specific interest rate which is higher than that paid on a passbook savings account.), T-Bills (Money the U.S. government borrows and pays back within one year. T-Bills sell at a discount because they do not make interest payments.), Money Market Funds (A type of mutual fund that invests in short-term securities, such as T-bills, and earns interest. The fundÆs share value is usually $1.), and IRAs (A tax-deferred retirement plan for anyone with employment income. IRAs offer great investment flexibility. Maximum contribution is $2,000 per year. If you have no income but receive alimony, you still qualify for an IRA contribution.), you should create Investment Accounts (An account type specifically tailored for investment record keeping. Generally, youÆll set up one investment account for each account statement you receive. YouÆll then add individual investments to this investment account.).