Financing Your Future
October 8, 2021
Preparing for your financial future doesn’t have to be a daunting task, nor is it “too late” if you didn’t start young. Whenever you start investing in real estate, you need just a few things to see some success. These include dedication, desire, passion, and the fruits of all of these: self-discipline. Once these things come together, you’ll find that you are making headway towards your financial goals. Here at Norfolk Capital, we’ll support you all along the way.
Things to Consider When You Start to Invest
You don’t have to have retirement in mind when you start to invest in properties. In fact, looking this far into your financial future may be detrimental to more immediate goals. However, planning for your retirement is also important, so you don’t end up in a crunch when the day comes.
Different Goals Need Different Investment Styles
If you have a short-term goal, it can be worth it to put some of your funds into riskier investments. You have a higher chance of getting more money sooner with these types of investments, but this is offset by a higher chance of losing your money. As the old investment saying goes, “risk is commensurate with reward.”
Because of this, riskier investments are best for short-term goals where you won’t be devastated if you come out on the losing end. The upside is that you may cash in a lot faster than with safer, stodgier, choices.
Long-term goals like retirement, buying a large house, or taking that once-in-a-lifetime luxury trip around the world need to be handled differently than short-term ones. This is because a long-term goal involves much more money than most short-term ones, so you have a lot more to lose. It is therefore smarter to play it safer, even though safer investments don’t have as much upside in percentage terms. When the time comes to retire, you don’t want to find out that your funds have been wiped out because the stock market hiccupped or there was an upheaval on the international stage. You want to be able to cash out and live in comfort.
Balancing Conflicting Goals
In order to balance the need to take care of both long- and short-term goals, most advisors will suggest that you divide your investment money between higher- and lower-risk options. The real need for advice comes in when you are deciding how much of your portfolio to put into which type of investment.
Here at Norfolk Capital, we work with you to determine the ideal mix of real estate investments for your portfolio. We take into account not only your financial needs, but your psychological requirements for risk or its avoidance. The intention is to arrive at a mixture that provides good returns while allowing you to sleep peacefully.
Since everyone has different needs, both financially and mentally, we will consult with you to customize our suggestions specifically for you. This ensures that you get the best possible investment plan for your personal situation. Call us today to get started.
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