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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Assets

Definition:

These aren't the sorts of assets people are talking about when they talk about Marilyn Monroe. In financial terms, assets just refer to stuff you own that's worth something. You might have a lot of love, but financial types are more interested in the value of your home, your retirement fund, your stocks, and anything you can sell to make a buck.

Tally it all up, subtract your debts, and that's where your assets are. We hope it's as impressive as Marilyn. 

Example

An orthodontist is married to a school teacher in Peoria, IL. Their assets consist of $253,432 in a Schwab One brokerage account, a home valued at $643,000 with a $300,000 mortgage (their equity in the home is $343,000), $20,000 in a B of A account, and $92,302 in a teacher's retirement pension account. Oh, and $12,000 worth of crap in their garage that really should be sold on eBay. Those are all assets.