Clock and Money Balancing on Scale

01 Feb Strategic Assets: How Time Holding Can Boost your Investments

Investments are a serious commitment but as such, they can also provide incredible returns. When you’re considering making an investment it’s important to understand the commitment that comes with it and to also know what to expect from it, particularly with growth assets.

When you’re investing in what we like to call a ‘growth’ asset, i.e. shares or property, the typical investment time frame of over seven years is what you’re probably expecting. This time frame allows the asset enough time to complete a financial cycle and hopefully produce an overall better return.

That being said, time holding (keeping your money in place for much longer than seven years) can be a great strategy.  Typically, the reason you’ve put your hard-earned money into a growth asset is to actually see some growth over time, not to quickly turn it over for a profit. You want to make an investment that will help you later when you really need it, during your retirement.  So considering a long-term solution can be much more beneficial for you.

We understand that money is an incredibly fluid thing and life is unpredictable. The best-laid plans often don’t work out for a variety of reasons and you need to be flexible as much as you can. Life happens and money is all about supporting you and your lifestyle. It’s important to know that you can move money around should you need to.  But in an ideal world, a long-term investment will serve you better.

We always recommend thinking about your original reasons for investment before making any rash decisions.  You planned, you saved, and you worked hard to get this investment so why not try to see it through to its full potential?

The key to a successful financial strategy is to constantly check in on it, ensure it’s working according to plan and reassess as necessary.  Whether you’re teaming up with a trusted financial advisor or you’re going at it alone, you need to take the time to truly understand all aspects of your investments and treat them as if they are as important as your salary -because they are!

An ideal investment will serve you well for many years to come, right into your retirement so you’re able to continue living life to the same degree as you do now. Take the time and care and you’ll be happy you did later.

If you need assistance working out your financial strategies for the future contact us today, we’d be happy to help. 

 

All content provided on this ‘Strategic Assets: How Time Holding Can Boost your Investments” blog is for informational purposes only. The owner of this blog is not liable for any errors or omissions in this information.