"The better investment"
There’s no single investment that is a better investment. We surely need to diversify between real estate, business and financial products. However, splitting equally or having another mix is not the issue. All theories will go to dust when crisis happen. Below are some tips from best practices, extracted from our experience with our clients:
1. Don’t follow formulas, follow the basics: your risk profile, your goals, your budget and the timeline. If you don’t like risk, don’t go to crypto and currencies. Move towards real estate and specifically land. If you have low budget, forget about real estate and keep saving, or move towards small business investments or even gold. You have to understand how much risk you can afford, put clear goals in front of you, and go backwards in your planning. A one million dollars investment is a $2,000 monthly amount for the next 40 years. So think small to reach big goals. From our perspective, the first step is to create your personal income statement and personal balance sheet. Next steps follow.
2. Time is a big factor to use. The longer the period, the more options you have. Don’t wait till the last minute or until fear eats you alive to start planning and investing. It’s not magic; you are simply putting aside an amount of money that will accumulate over time. So increase that amount, and give it enough time. The big challenge is earning more income. We will discuss this shortly.
3. Real estate is surely a good investment with a lot of potential; however, it is not always an affordable option. Currencies, gold and mutual funds are more accessible, but not always under your control when it comes to fluctuations and safety. In all cases, they are important to be part of your portfolio, even in small amounts. You can always increase the investment when you feel more comfortable. Business on the other hand, can be a great solution for many reasons. Below are the top ones:
- A business can be an active investment; you invest your money, your time and your passion. It gets you busy and you can control a lot of parameters.
b. Businesses surely go into cycles and crisis, but that’s why you can always have a new strategy to adjust your direction. Something not easy to do with other types of investments.
- A business can be sold at a higher value, franchised to other countries, or even passed to the next generation. A business can live much longer than you and if well expanded, it can be a blessing for you, your family and your community.
- A business can be a great retirement plan; you can delegate management and relax, go to semi-retirement and keep enjoying work smoothly, or even keep working if you need it or simply because you are workaholic.
- If the current model doesn’t work, you can always change the business model, work remotely, or find a new way to benefit from your experience and your reputation.
- A business is a great backup plan in case employment is lost. And most of the times, after preparing the new business as a plan B, it appears to be the time to make it plan A.
Inflation is going crazy and bank interest rates are not significant anymore…So savings are going dead; turn your deposits into investments and ensure a better future. Let’s schedule a meeting and guide you through potential solutions.