Now that another year has passed, more opportunities await for a fresh new start in your journey towards financial freedom. While the momentum is high, take advantage of it by reflecting on your existing investments and the ones that you intend to carry out for this year in preparation for the future.
Since it is also the time when you plan ahead for the entire year, use this chance to gear up your financial decisions which should always be hinged on your long-term goals.
Here are the top 3 investment moves that you need to think about and consider to continuously increase the viability of gaining more wealth not just this year but for the long-term:
- Imbibe a Global Perspective
Exposing yourself to foreign markets is a wise investment decision that you could start doing this year. Allocating funds for global investing may reduce risks of loss and provide new opportunities for growth even when your home country hits decline.
In the same way, being international expands your platform for new ventures to strengthen your portfolio. As you go global with your investments, you should also continue diversifying your portfolio to increase chances of generating higher returns as compared to investments concentrated on one asset within one market.
Diversification entails crucial decision-making when it comes to spreading your investments across different asset classes such as equities, bonds, hard assets, etc. – while giving utmost consideration to your personal risk tolerance, needs, and goals. Achieving balance in your investments gives you a chance to adjust the proportion of your assets to take on more or less smart risk, depending on your investment goals.
- Solidify Retirement Plan
The way you plan for your retirement has a huge contribution to the quality of life that you will reap in the future. And if you have not maximized your preparations in the present, you cannot expect substantial returns by the time you reach the golden years. Hence, this 2018, make it a point to carefully analyze your progress towards retirement.
For your own benefit, consider completing your retirement income projection with assistance from a trusted financial planner to give you a concrete idea of where you are headed to, while minimizing financial blind spots.
It is also a great opportunity to automate your retirement plan contributions so you don’t have to think about the money you need to disburse for this.
- Sustain Focus on Long Term Goals
While you look forward to what’s in store this 2018, make it a habit to keep in mind that your past investment performances do not determine the future. Furthermore, note that varying market conditions year in, year out should not encourage you to come up with abrupt emotionally-driven investment decisions. Regardless of the outcome, you should stay on track by prioritizing your long-term investment goals.
Your progress may differ year-on-year but your goals should remain intact so that you may enjoy the advantages of compound interest as a result of your long-term investment strategies. Focusing on your goals gives you direction that you need for a financially secure future.
