Subject | Re: Stupidity in motion |
From | -hh |
Date | 04/19/2013 01:05 (04/18/2013 16:05) |
Message-ID | <724f4c47-7fb8-4f44-86ab-916dcf3f5df9@p12g2000yqo.googlegroups.com> |
Client | |
Newsgroups | comp.sys.mac.advocacy |
Follows | ed |
Followups | ed (1h & 12m) > -hh |
edTwo* of the biggest idiots who post often don't know what an "asset" is.
On Thursday, April 18, 2013 4:19:28 AM UTC-7, -hh wrote:-hhed
On Apr 17, 6:25 pm, ed <n...@atwistedweb.com>wrote:On Wednesday, April 17, 2013 4:08:54 PM UTC-7, KDT wrote:
...KDT
Words Mean Things. It's quite telling that in a thread titled "Stupidity in motion." *=
f a word is. =A0The word "asset" has had a well defined meaning since the 1= 600's.But on to the point, no one cares what *you* think the definition o=
ahttp://oxforddictionaries.com/us/definition/american_english/assetwords do mean things. =A0and in financial accounting and legal terms,=
True, although "asset" is probably most commonly a financial-centric term.car is clearly an asset.-hhed
Which settles the question of definitions.
if someone were defining it in those terms. =A0;D
Recognition that it isn't simplistically a cut-and-dry topic, as you later explore, because of cost-of-operation, etc...=A0for household accounting and colloquial use, it's much less clear whether a car should be considered an asset. =A0personally, i don't consider my car an asset for purposes of household accounting or calculating net worth,...-hhed
I follow you, but does this then imply that if the car isn't an asset, then the loan on it is?
of course not.-hhed
Sorry Ed, that's a Devils Advocate question,
i'm not sure where it came from- left field?
Oh, it is still an asset ... it's just that you're choosing to list it as a zero, in anticipation of depreciation & wear, etc.-hhed
since they both cant be listed in the same column.
there's no reason to- just because you don't consider it an asset doesn't mean that the loan would be considered a asset. the car wouldn't be listed in *either* column- just as i wouldn't list all the random crap in my house that i could sell on ebay as an asset if i were working up my net worth, even though, technically, they'd be assets.
Same is true of a house, too...so is it not an asset either? Or even one that you'll list as a zero?-hhed
Similarly, even though we can agree that a car isn't a good investment, it is still a colloquial "asset" from the aspect that it is a desirable/useful tool to accomplish certain tasks.
and colloquially, a liability is something that costs you money. which cars do, even if it has no loan and has some value left. =A0that's why this isn't as straightforward (outside financial accounting and the law) as 'a car is an asset.'
ss... =A0just as i don't include the value of all my random crap that i =A0could sell on ebay, as the purpose of me keeping track of assets and net worth is to see where i stand long term. =A0bookkeeping the =A0current value of a vehicle (and other assets) that will be worthle=
Oh, it's still a depreciation question... Which is also why you're willing to "fast forward" it to zero upfront.=A0in 15 years adds nothing to that view. =A0ymmv.-hhed
Ah, but that's a question do appreciation vs depreciation,
not reall; maybe i should have left out the long view- i wouldn't include it in a view of my net worth NOW either. =A0;D
Which also follows conventional & general accepted accounting practices (GAAP).-hhed
as well as to what degree to ignore ankle-biters from the basic motivation of investments. =A0By the same type of logic, you would want to also not include your house, since you always need to live somewhere....right?
if one were planning on living in their current house for the rest of their lives and passing it on to the kids(which some people do), that would not be a bad way of considering their house. =A0a million dollar house that you own free and clear does one no good if they are unwilling or unable to pull money out of it and live a poor life as a result. =A0but more practical people would clearly view a house with equity in it as an asset.
a house that's upside down might be a better example- technically it's an asset partially offsetting a large liability, but colloquially, you'll not get many people to agree THAT is an asset. =A0;DOn the contrary: both are still assets - the one simply wasn't as good of an "investment", because the Bank still has he controlling interest. As always, any investment has risk.