Buying Long; Not Selling Short
Long-term buy and hold is a strategy and one of the cornerstones to building a strong financial foundation, unlocking sustainable wealth and creating a living legacy.
The long-term buy and hold strategy is one of the primary reasons I have investment real estate as part of my financial portfolio cornerstones.
People are continuously guessing their stock market purchase decisions and no sooner have they had a purchase within their stock market portfolio they are divesting themselves of their investment. Are you one of these folks?
On Monday, February 5, 2018, CBSN Money Watch reported the following: The Dow Jones Industrial Average lost 1,175.21 points, or 4.6 percent, closing at 24,345.75 on Monday. Earlier in the afternoon, the index declined more than 1,500 points before recovering slightly.
Have you noticed that when it comes to making a trade in the stock market, we have brokerages dropping the cost to trade to a price that is very inexpensive to assist you in having no hesitation in making a trade? In many cases, the cost to trade is less than the cost of a latte.
There is an old saying that continues to ring true today;” A fool and his money are soon parted.”
I draw from experience; have been that fool and his money.
Am I saying you should not be in the stock market; no. The question is what mechanism do you have in place to allow you to take a deep breath before overreacting?
I have a love affair with a financial purchase or sales strategy that makes you think before you purchase or sell. The cost of entry or exit should be high enough to get you to think about the consequences of buying or selling.
When you purchase investment real estate, you know that there will be real estate commissions to be paid even if you are the buyer ( the seller on the surface pays the commission; just remember as buyer commissions are built into the price you pay). The other costs will include legal fees, government taxes in some form: (municipal, state, provincial or federal), insurances, administration, etc. These costs add up to way more than the price of a latte.
I have written about who is directing your portfolio in my blog post; https://www.vaulttoinvestmentrealestatesuccess.com/blog/whos-driving-investments/
I talk to how often you have no control over who is steering many of your investment vehicles. The majority of your investments such as government retirement funds, pension funds or mutual funds they are all controlled by someone else deciding on what to purchase in those funds.
Investment real estate is one area of your financial portfolio you get to control and with the cost of buying or selling investment real estate being expensive you need to take a stronger look to the purchase or the sale and the return you will earn on investment real estate.
Not Death Due You Part Survival Exclusive
No matter how well you have done with your investment portfolio having an exit strategy is critical for each financial account you own whether it is investment real estate or any other type of investment vehicle.
Do you have specific instructions for each financial account?
Is death due you part your only exit strategy?