ELI5: Explain Like I'm 5

Real assets

Real assets are things that you can see and touch, like a house or a car. They're not like money, which is just a piece of paper that says it's worth something. Real assets have value because they can be used in some way - like a house can be lived in, or a car can be driven.

When people invest in real assets, they're buying something that they hope will increase in value over time. For example, if you buy a house for $200,000, you might hope that in 5 years it will be worth $250,000. If that happens, you can sell the house and make a profit.

But real assets can also be risky to invest in. If you buy a house and the housing market crashes, the value of your house could drop dramatically. You might end up selling it for less than you paid for it.

So, real assets can be a good way to invest your money, but you need to be careful and do your research before you buy anything. Make sure you understand the risks involved and make an informed decision.