Financial Freedom is a goal for many but few have a clear idea of how to get there. Sure, you can see yourself retiring on a beautiful beach without a care in the world; or maybe you imagine opening your own business or quitting your job to write a novel. But how will you support yourself?
There are several ways to get from point A (your present financial situation) to point B (your financial destination) and the road you choose depends on many factors. You need to consult a financial planner that can walk you through: your current assets, how long you need your journey to financial freedom to take, and what you can afford to risk along the way.
The Long Road
The long road means depositing your savings into a bank account that makes you zero profits. If you look around, you will notice a few other cars alongside you on this road. They will be traveling slowly but steadily.
Simple saving is a tried and true method to funding your future but it will be a long, long time before you get to your goals. Can you afford to wait that long? If so, get ready for a slow drive where you are depositing every extra penny and inching along.
The Middle Road
The middle road is where most people might find themselves traveling. If you look around you on the middle road, you’ll likely see lots of other people moving toward their financial future on the same path.
There’s nothing wrong with this path. That’s why so many people choose it. Financially, the middle road might mean investing in a good solid fund that’s performing at 8-10 percent return each year at low volatility. This road will help you to reach your financial goals much faster than simply saving while still being safe.
For this ride, you’re moving a lot faster than on the long road, but you still have a lot of air bags around you. Airbags are a good thing. They act as a cushion against accidents. In terms of financial products, the airbags mean that you have a balanced, diverse portfolio and that no single hit will hurt you too badly.
With your “airbags” around you, you can feel safe knowing that you are doing more than simply saving. You’re proactively increasing your wealth in a manner that’s still cautious and safe, protecting your investments for both you and your family.
The Short Road
If you’ve chosen the short road, you’ll notice that there is far less traffic. That’s because the road is bumpier and at times it may seem like there is no road at all beneath you. On the short road, there are no air bags. If you get into an accident, you’re going to feel the impact. That sounds scary and it is. The upside to being on the short road is that it gets you to your goal much, much faster.
The short road involves taking more risks to reach your financial goals. Maybe that means offshore investments in lots of different jurisdictions, investments in up-and-coming vacation destinations and other ventures with lots of volatility.
Think of it this way, if the Long Road looks like a suburban Main Street and the Middle Road feels like the highway, the Short Road is more like off-roading. But it’s the right choice for some people.
What’s the right choice for you? Maybe it’s one of these roads or a route that combines parts of all three. Find out all of your options by getting in touch with Richard Cayne and Meyer International to set up an appointment today!
