Financial Foundations

The Cache Valley Area Investors Association members build their investments on a foundation organized according to risk level. With increased risk, the need for education increases in order to mitigate that risk. In order of risk level from least to most the financial foundation are self, real estate, commodities, collectibles, securities, businesses, and intellectual property. A novice investor will likely benefit most by investing in the lower foundations, while an experienced investor might benefit more by investing higher foundations. The lower foundations such as real estate and commodities are based more on tangible value--that is there is an asset that can be touched and has inherent value. The higher foundations like businesses and intellectual property are based more on perceived value--that is the value is estimated on paper and depends highly on the unpredictability of what someone is willing to pay for the asset that may not have any inherent value. For more information click on each financial foundation.