Correction: Types of assets

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

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.  That’s incorrect.

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

Sorry for any confusion.  Again, if you want to be informed when the program goes to market, e-mail me at and I’ll add you to the mailing list.