Can Investments Secure Your Family Financial Future?
When it comes to your family, you want to make sure you can create a safe future for your loved ones. Financial uncertainty can expose you and your family to dramatic situations. Therefore, most families take preventive measures to ensure they can protect their loved ones from financial distress. Writing a will, for instance, will provide guidance on how to manage your real estate and assets in the event of your death. If you have a high-earning income or if your family still needs to pay off loans and mortgages, getting life insurance cover can ensure that those essential payments will carry on. It can prevent your family from struggling with debt, for instance. But have you considered how an investment portfolio could also provide financial security for the future? Here is what you need to know about starting your first portfolio.
Look out for certified experts
Financial advisors are specifically trained to provide the support you need. However, be careful about who you trust with your investment. Indeed, an investment manager and financial consultant should be regulated by an independent governing body to protect your rights as an investor. For instance, the regulation commission or US financial companies is the FCA. You will need to check that your advisor is regulated by the FCA. If you reach out to international markets as part of your investment strategy, it can help to be familiar with the local commissions, such as in the EU, experts are ASF regulated, while in Australia an expert such as Wayne Blazejczyk ASIC regulated. Independent regulations are there to protect your investment.
Focus on non-volatile assets
Amateur investors tend to be more successful with tangible assets that can be more manageable. The stock market tends to be volatile and complex for newcomers who want to boost their gains. Unfortunately, the volatility of the market requires quick thinking. For instance, if you’re trading currencies, you’ll need to be active every day to account for changes in the market. Therefore, it makes sense to choose an investment strategy that doesn’t require constant monitoring. Real estate investments are a popular choice as they guarantee a passive income through physical and hands-on activities. Unlike other assets, you can see the physical property and estimate its value in real-time.
Seek growth security
The best investments for financial safety are reliable, such as real estate, and have huge growth potential. Real estate investments are likely to increase in value if you look after your property. But other assets meet the description too. Crypto assets utilize the safety of blockchain technology to preserve your investments. Platforms are still improving their safety measures to keep hackers at bay. But, as the blockchain industry is growing in safety and popularity, it’s worth considering crypto investments. Indeed, crypto assets such as Bitcoin come with a maximum supply of coins, which makes the currency scarce and will increase its value over time.
Approaching the family wealth strategy is a complex topic. Couples can choose to grow their wealth through traditional methods, such as 401(k) plan, IRAs and spousal IRA, Roth IRA. However, there is only so much that you can achieve without diversifying your investment portfolio. Therefore, it makes sense to sit down with a financial advisor to discuss the best option for you and your family. If you are comfortable with some level of risks, your advisor could also recommend stocks, mutual funds, ETFs and bonds.