Ensuring your and your family’s financial stability takes a lot of hard work and planning, not forgetting the ability to make smart investment decisions.
Making smart and informed investment decisions will not only ensure that you protect your hard earned money, but also that you are able to grow your asset base in years to come. As a business person, with an eye to the future, it is vital that you have a well thought-out investment strategy, covering all your bases ensuring that your interests are well looked after, even while you are earning.
If you are unsure about your current investment strategy or lack thereof, consider these three top financial planning tips to make a success of your investment endeavors.
Play to your strengths
First and foremost, a well thought-out strategy, before you decide to part with any money, is highly advisable. And a strategy that plays to your strengths should be the foundation of your plan.
Many top investors will tell you that having a clear understanding of why certain investment opportunities are a yes, while others are a no-go, as well as the knowledge on what drives a particular investment’s performance, is key to an effective investment strategy – having insider knowledge is therefore essential. So, for example, if you were involved in property development, you would know the state of the industry, where development hot-spots are and so on. Key here, is playing the investment game to your strengths.
Measure and monitor your investments
Setting clearly defined benchmarks when investing is another important part of your overall strategy, and will enable you to measure how your investments are doing, so to reevaluate them when targets are not met, and to possibly increase your investment when they are exceeded.
Important to realise here, is that return on an investment can be calculated on past or current investment or on the estimated return on future investment. This should be assessed both at the start of your investment, as well as regularly through the course of the investment. Taking into consideration all contexts and eventualities.
Invest your money widely, and wisely
A balanced strategy is generally required in the process of investment. Having your eggs in many baskets is smart investing; ideally, you want to invest in a range of asset classes. This can help you reap the benefits of market upswings, while mitigating the knock that you take when things go downhill. Here are two important options to consider when deciding on where to invest:
such as certain stocks, or investments such as property. Once could be used to raise capital in the short term, for further investment, while the other to ensure a secure future for your family or aimed at retirement.
Identify both high and low risk options: high return investment instruments, such as mutual funds usually have more risks associated with it than low return, low risk investment opportunities such as annuity plans.
Consider both short-term and long-term:
For those of you interested in investing in property, real estate markets on the rise, such as Spain will allow you a value-for-money investment for future returns, as well as family time in the present.
That is, if you decide on holiday hotspots like Costa Blanca, and invest in one of their many Calpe villas. For more on the Spanish property market, and specialised property insight when it comes to your investment strategy in this market, get in contact with market leaders at Seanest. Discover a holiday home in the form of one of their Calpe villas, and make it your best investment move yet!