Alero Equities Explains: What Is Asset Monetization And How Is It Important?

“What is Asset Monetization” may seem like another incomprehensible financial concept, but understanding this one might turn your whole life around.

Anything that is of value can be an asset if some use can be made of it. For instance, an empty house has potential value if it is sold, lived in, or rented. If you own one, however, and do none of these things, it may be an asset in theory but to you, it is a liability. You have to pay the taxes and maintain it to some extent or lose it. Turning this negative into a source of income is an example of monetization of an asset.

The strategies for optimizing any sort of asset can be complicated, but the theory is easy to comprehend. For example, you inherit a house and don’t want to sell it (turn this asset into money) or live in it. If you let it sit empty, it only costs you in taxes and upkeep. However, if you rent it, it becomes a money maker rather than a resource drain.

The concept is no more difficult when considering the value of intangible assets. You may own some of these, as well, things like work skills, the talent to write a hit song or sing one, or the know how to fix a car or a computer. Picasso may not always have had tangible assets, but he could get a meal by drawing on the tablecloth.

Suppose you really have built a better mousetrap. The trap itself may be worth $1.99, but the idea may be worth millions. You can admire it and keep it in a box, make an intangible profit by catching your own mice, open a sole proprietorship mouse catching business, or lease or sell the idea to a major company who will pay you royalties for life.

Knowing what is asset monetization is the first step to perhaps turning some under-performing or under-appreciated assets into cold hard cash.

For additional information or questions about Alero Equities please see the group at www.aleroequities.com

Acceptions:

One for the Money (Stephanie Plum, No. 1)Read the Dynamite Blockbuster that Started It All!

Welcome to Trenton, New Jersey, home to wiseguys, average Joes, and Stephanie Plum, who sports a big attitude and even bigger money problems (since losing her job as a lingerie buyer for a department store). Stephanie needs cash--fast--but times are tough, and soon she's forced to turn to the last resort of the truly desperate: family.

Stephanie lands a gig at her sleazy cousin Vinnie's bail bonding company. She's got no experience. But that doesn't matter. Neither does the fact that the bail jumper in question is local vice cop Joe Morelli. From the time he first looked up her dress to the time he first got into her pants to the time Steph hit him with her father's Buick, M-o-r-e-l-l-i has spelled t-r-o-u-b-l-e. And now the hot guy is in hot water--wanted for murder.

Abject poverty is a great motivator for learning new skills, but being trained in the school of hard knocks by people like psycho prizefighter Benito Ramirez isn't. Still, if Stephanie can nab Morelli in a week, she'll make a cool ten grand. All she has to do is become an expert bounty hunter overnight--and keep herself from getting killed before she gets her man.