Asset Accumulation


DEFINITION of 'Asset Accumulation'

The increase in the value of financial property and investments over time through the process of saving money and earning returns. Asset accumulation is the goal of all savers and investors. It represents increasing portfolio values, net worth and savings account balances, as cash is saved or invested and then grows through interest earnings and investment gains.

BREAKING DOWN 'Asset Accumulation'

Asset accumulation is a powerful way for individuals to save for retirement and reach other aggressive goals as it works on the dual level of savings and investment gains. Assets that accumulate can be cash assets or real property. Its positive effect on net worth is offset by any debt that the investor or saver owes.

  1. Savings

    According to Keynesian economics, the amount left over when the ...
  2. Gain

    An increase in the value of an asset or property. A gain arises ...
  3. Asset

    1. A resource with economic value that an individual, corporation ...
  4. Return

    The gain or loss of a security in a particular period. The return ...
  5. Unrealized Gain

    A profit that exists on paper, resulting from any type of investment. ...
  6. Realized Gain

    A gain resulting from selling an asset at a price higher than ...
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