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AZ Tech Roundtable 2.0

AZ Tech Roundtable 2.0 with Matt Battaglia

The show where EntrepreneursTop Executives, Founders, and Investors come to share insights about the future of business


AZ TRT 2.0 looks at the new trends in business, & how classic industries are evolving

Common Topics Discussed: Startups, Founders, Funds & Venture Capital, Business, Entrepreneurship, Biotech, Blockchain / Crypto, Executive Comp, Investing, Stocks, Real Estate + Alternative Investments, and more… 


AZ TRT Podcast Home Page:

‘Best Of’ AZ TRT Podcast: Click Here 

Wealth for Life: HERE


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Jun 17, 2022

Assets – Appreciating vs. Harvesting

- BRT S03 EP26 (125) 6-17-2022 – Wealth for Life


Things We Learned This Week

  • Appreciating Asset – buy low, sell high, buy an asset and hope it goes up in value – ie Stocks,, Gold, Art, Real Estate, Crypto
  • Harvesting Assets – Assets that give off income, or cash flow - ie  Real Estate rental property, owning a business, dividend stocks, REITs, etc.
  • Stock market is not Efficient at capturing gains, have to sell at the right time to gain the value of the asset – harvesting Assets can also appreciate while giving off income
  • Assets act as a hedge vs. inflation - money sitting in cash, loses value to inflation, purchase an asset that goes up in value more than inflation.
  • Past – people had pensions, savings, & social security to rely on, today have to create your own retirement plan – use Tax Buckets and move money into a long term Tax Free position



Co-Host: Denver NowiczPresident - Wealth For Life 

Denver is an advisor with nearly 20 years experience working with clients in investments and insurance, designing retirement plans with a combo of both. He takes us through different strategies for clients to get the best allocations for their money over the long term. It is the Combo Strategy of both Offense and Defense, the synergy of the mix, not ‘All or Nothing’.



Assets: Appreciating vs. Harvesting 


There are many different Assets you can invest in. Common asset classes are Stocks, Bonds, Gold & Real Estate. There are Alternative assets like Crypto, Art, Private Equity, etc.

The classic idea is you  buy an asset as an investment with the idea it will appreciate over time so it is worth more when you sell it.  Buy low, sell high.

It also may act as a hedge vs inflation. Instead of having your money sit in cash, and lose money to inflation, you purchase an asset that goes up in value more than inflation.

What is rarely discussed is the concept of Appreciating Assets vs. Harvesting Assets. What's the difference?

Appreciating Assets are the assets mentioned above, where the plan is to buy low, wait for the appreciation, then sell high. You do not capture the gains until you sell. You gain value on paper, but if you wait too long to sell, you could miss the appreciation. Likewise if they lose value but you do not sell, then only a paper loss. 

Stocks are a classic example. 'If I just sold last month, I would have made 25%, instead of 15%.' You have to time it right.

Other examples are Gold, Art, most Crypto, certain types of Real Estate (Land for example with nothing build on it yet). 

These assets are only valuable when they appreciate, and if you sell at the right time. 

Harvesting Assets are assets that get interest, or give off profits, or cash flow.
You are able to capture some of the gains from the asset. 

Examples are:

  • Rental Real Estate - get rental income, plus expense write offs, plus depreciation ***
  • Bonds - collect interest during the term, and receive the full value if held the entire term ***
  • Dividend Stocks - receive payments quarterly from the co. ***
  • REITs - pays out 90% of income as dividends to investors ***
  • Crypto that is Staked - receive interest payments while staking ***
  • Covered Call Options - collecting premium on stocks you own, by renting them out ***
  • Business - that is profitable, and gives off cash flow
  • Index Life Insurance - receive credited interest during the term

*** Asset value can go up or down in the holding period

In fact many of the above Harvesting examples can all be both Appreciating and Harvesting Assets:

Rental Real Estate, Bonds, Dividend Stocks, REITs, Cash Flowing Business, Index life Insurance, etc.

Note: Options are not an asset, they are a contract that with a decaying value over its term, and can go down quickly; time decay lessens the option contract the longer you hold it, until it expires at the expiration date worthless. This is why Options are often referred to as trading (short term) vs investing (long term). 

When investing in Assets, it is recommended you buy Harvesting Assets to get the best of all worlds. In case the value of the Asset goes down, at least you receive some cash while holding the Asset.  

Cash – classic asset that loses value over time, can’t buy the same amount today for a dollar that you could 10 or 15 years ago

Fed Policy – print money, devalues currency, creates inflation           

Inflation – eats away at value of cash, assets like stocks, gold, real estate can all act as a hedge vs inflation

Create assets – digital assets, build an online business 

Past – people had pensions, savings, & social security to rely on, today have to create your own retirement plan


Buy & Hold – appreciating asset, when to sell, avoid whipsaw of market (up & down movement)

Harvesting – cash flow, take profits off table and re-deploy money

Asset pricing and timing


Hard Assets - Real Estate

Cash Flowing (CF) Business with recurring revenue is an excellent harvesting asset that gives you multiple options to grow wealth long term


With good assets, can use leverage to grow wealth and acquire more assets.

Assets – appreciate, options, harvest / cash flow

Leverage – scale wealth using other people’s money, finance your retirement and go bigger and quicker


Tax Protection – defense strategy, put money in long term tax free position

Index Strategies with IUL


Top 10% strategies – if you earn more than $140K, than top 10% earner and most financial advice does not apply anymore

Wealth gets more wealth – save and invest more money using leverage can grow massively thru compound interest


“One Thing” Retirement Plan – 401K, and stocks (+ W2 income), hope it goes up and no volatility (market risk). 90% of people are on this plan – Need to get away from this plan and diversify your retirement plan

Retirement Rule or 4% Withdrawal Rule – is outdated, and often will fund one’s lifestyle in retirement


More efficient use of money

Assets can act as an inflation hedge, as they increase in value when Inflation rises.

Income Streams – Good use of Harvesting type assets leads to multiple income streams

Loan Collateral – borrow against assets, or use as collateral to get a loan or another asset

Credit Line – borrow from assets (ie – bank credit line, real estate credit line)

Refinance – cash out refinance of real estate leads to tax free money returned

Net Worth – personal financial statement, fill out yearly and list asset values


Markets are inefficient, and often irrational. Humans are emotional and tend to panic when they see scary headline on CNBC. People sell on fear of a recession, disregarding the fact that many of these big companies will not go out of business. 

Trading in the Markets have changed with all the super computers and algorithms involved in daily stock trading. Computers can create huge sell offs in the market, because of the programs and indicators they operate off of - artificial intelligence. 

Financial Advice should be more holistic. Too much advice is based on buying stocks, vs growing your overall net worth. To grow wealth, one must have cash flowing assets. You want to put yourself in a solid financial position owning different assets (like real estate, stocks, etc.) so you can handle economic downturns. 

The stock market value is all on paper until you sell, so it is inefficient on capturing gains. The wealthy may only have 20 - 30% of their money in the stocks. It is hard to be consistent and disciplined in your investing. You need ways to generate cash, and lock in gains. 

It is important to understand Market Cycles, and how they work, plus how long they will last. Howard Marks writes often on this topic, in his memos or the book he wrote on the topic (here is a summary). If you can recognize these cycles, it helps in investment planning. 

Tiger 21 Club - Follow this super investor group for ideas, and how they diversify their investments. Allocation usually has 25% in real estate, 25% in stocks, 25% in private equity, 10% in cash, and the rest is Bonds or other investments.



More Info on WFL and Tax Free Matching: HERE



Wealth For Life Topic:


Link to Taxes Show on 10/31/2021 w/ Denver: Here

Link to Offense / Defense Show on 6/6/2021 w/ Denver: Here

Link to Shows, Denver was a Guest: Here


Investing Topic:

More - BRT Best of:



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Please Subscribe to the BRT Podcast. 



Business Roundtable with Matt Battaglia

The show where EntrepreneursHigh Level Executives, Business Owners, and Investors come to share insight and ideas about the future of businessBRT 2.0 looks at the new trends in business, and how classic industries are evolving

Common Topics Discussed: Business, Entrepreneurship, Investing, Stocks, Cannabis, Tech, Blockchain / Crypto, Real Estate, Legal, Sales, Charity, and more… 

BRT Podcast Home Page:

‘Best Of’ BRT Podcast: Click Here

BRT Podcast on Google: Click Here

BRT Podcast on Spotify: Click Here                   

More Info:

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Disclaimer: The views and opinions expressed in this program are those of the Hosts, Guests and Speakers, and do not necessarily reflect the views or positions of any entities they represent (or affiliates, members, managers, employees or partners), or any Station, Podcast Platform, Website or Social Media that this show may air on. All information provided is for educational and entertainment purposes. Nothing said on this program should be considered advice or recommendations in: business, legal, real estate, crypto, tax accounting, investment, etc. Always seek the advice of a professional in all business ventures, including but not limited to: investments, tax, loans, legal, accounting, real estate, crypto, contracts, sales, marketing, other business arrangements, etc.