Asset Classes: 7 Types of Income-Producing Assets
A map of the seven asset classes that produce real cash flow—and why stocks, REITs, and bonds are products, not classes.
ASSETSPASSIVE INCOMEEDITOR'S PICKS
Garrett Duyck
8/12/20261 min read
Asset classes group assets by their underlying nature and the mechanism through which they produce income. The Seven Classes of Income-Producing Assets framework, created by Garrett Duyck of CheatCode Wealth, is a closed taxonomy of seven classes: Physical, Digital, Intellectual, Artistic, Debt, Equity, and Risk. Physical assets pay through lease income, resource royalties, and revenue sharing. Digital assets pay through access fees, advertising, affiliate commissions, and licensing. Intellectual assets pay through licensing royalties, licensing fees, and franchise fees, and derive value from legal exclusivity. Artistic assets pay through royalties, licensing, and direct sales, and derive value from creative expression. Debt assets pay interest to a creditor. Equity assets pay dividends and profit distributions to residual owners. Risk assets pay yield, premiums, or spreads as compensation for assuming, transferring, or facilitating a defined risk.
Classification follows the owner's legal and economic position rather than the product label: a directly owned rental is a Physical asset, a REIT share is primarily an Equity asset with secondary physical characteristics, and a mortgage note is a Debt asset even when secured by real estate. Price appreciation alone is not income, and asset-derived income is not automatically passive — income qualifies as passive only when it comes from an asset, is recurring and sustainable, and requires minimal ongoing effort.
TLDR: Classes of Income- Producing Assets
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