There are a lot of gaps in individual investor portfolios. Many are not able to consistently stick with a good investment plan for the long term. Others may be thinking too long term. How can you master both short and long term investing so that your money will always be working hard for you?
The 3 Types of Investments We All Need
Given that many of us may live 30 plus years after retirement age, we have to be financially prepared to take care of ourselves during that time. Retirement may feel a ways off at times, especially when many believe 60 is the new 30, however if we start investing today, we’ll be happy we did. It’s a lot easier to get ahead now than trying to catch up later.
Of course, many Canadians just don’t seem to have the patience to think long term with their money. There are so many pressures to shop today. Even if you are a smart shopper, it can be demoralizing when you aren’t seeing the results stack up very fast in your investment portfolio. There is also a sense of accomplishment when the first $100,000 is saved; however, that’s a bit of a ways off from the millions you’ll want saved.
The big question of when we may have to stop working or how long our retirement will last are unknowns, so empower yourself and shift the attention to having investments that produces income now. Retirement, short term and income investing can help lessen the pressure to cover any missing income, and can provide the results we seek for our investment account.
While it can be impossible to predict the future, there are some good 100 year businesses and assets that are designed to last. Providing they aren’t costing you anything, and they are managed by professionals who are innovative and know how to adapt, you can ride highs and lows - knowing you’ll be laughing for the last third of your life or more. All while others are scrambling.
Short Term Investing
The problem with investing with a long term view is that the results can be slow to mount up. Annual contributions can seem like small chips in a huge glacier. For some that are behind on saving and investing, it may require some sizable leaps to catch up. That’s not going to be found in your average stock, or bond. Look for something which value can be added to, and wealth gains can be controlled in the short to mid term. Like redeveloping a shopping plaza or selling the highly leveraged, unused vacation home. Done correctly, the capital you gain can be recycled in your retirement portfolio.
We all need passive income. Not just in retirement age but today. Preferably, this is in a vehicle that can hold tangible value with the potential to appreciate over time, and is income focused. Short term value fluctuations don’t matter, as long as it can produce income. If you have to retire next month, you’ll have money coming in. This is important. If you can work another 10 years without needing the extra money - you can reinvest it back into your portfolio, happily knowing that your investments are growing and are effectively picking up any slack in what you need to set aside for retirement each month.
In order to really stick with investing and get the desired outcome, we need a mix of short, medium and long term investments. It enables us to see results now, consistent results over time and not be left hanging at retirement. Commercial real estate players, like ReDev, creates short and long term opportunities for its investors to benefit. ReDev have several Canadian retail investments that can help investors to reach their retirement goals plus their cashflow needs. Contact us for investment opportunities.