{"id":3059,"date":"2009-01-28T14:27:34","date_gmt":"2009-01-28T20:27:34","guid":{"rendered":"http:\/\/www.paulryburn.com\/blog\/?p=3059"},"modified":"2009-01-28T14:27:34","modified_gmt":"2009-01-28T20:27:34","slug":"correction-types-of-assets","status":"publish","type":"post","link":"http:\/\/www.paulryburn.com\/blog\/2009\/01\/28\/correction-types-of-assets\/","title":{"rendered":"Correction: Types of assets"},"content":{"rendered":"

I just re-read my “types of assets” post<\/a> explaining some of the theory behind the soon-to-be-released personal finance program I’m working on.\u00a0 I found a typo in there.\u00a0 Blast it all, I need to carefully proofread anything I post before I’ve had my first Mountain Dew in the morning.<\/p>\n

I wrote that a house purchased for $150,000 and now appraised at $170,000 should be recorded as a $150,000 income-producing (IP) asset and a $20,000 income-consuming (IC) asset.\u00a0 That’s incorrect.<\/p>\n

The house itself is a $150,000 income-consuming (IC) asset:\u00a0 Income-consuming because you still have to pay property taxes, maintenance, and insurance after purchasing the house.\u00a0 The $20,000 capital gain is a non-performing (NP) asset:\u00a0 Non-performing because it’s illiquid.\u00a0 You don’t gain access to the $20,000 until you sell the house.<\/p>\n

Sorry for any confusion.\u00a0 Again, if you want to be informed when the program goes to market, e-mail me at paul@paulryburn.com and I’ll add you to the mailing list.<\/p>\n","protected":false},"excerpt":{"rendered":"