Investable assets are the things you own that can be easily liquidated and invested. The money in your bank accounts, stocks, bonds, and mutual funds may be investable assets. Things like real estate, vehicles, and collectibles are not considered investable assets because, even though you may be able to liquidate them eventually, there’s no guarantee that you can sell them at any given time.

Smart money management includes diversifying your investable assets. Developing a well-balanced investment portfolio that includes various kinds of securities may help cushion the potential fallout of a downturn in asset values.

Your investable assets will also impact your ability to borrow money. Lenders will evaluate your investable assets to determine if you're likely to have the necessary cash available to make timely payments on your debt.

Diversification cannot ensure a profit or guarantee against a loss.