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As the world’s economic climate continues to appear uncertain, careful planning is essential for the closing months of 2017. Caution is key to keeping your money safe; Latin America, in particular, has been experiencing financial troubles that may make personal planning difficult, what with 77% of Argentinians believing that the country is in recession and the Venezuelan bolivar sinking to 10 389 bolivars to the dollar (bear in mind that 1 dollar equalled 3164 bolivars at the start of the year).
Speaking to Forbes, Dr. Robert R. Johnson of the American College of Financial Services emphasises the need to adopt a long-term approach to defend against the turbulence of the economic tide in 2017, with a specific focus on forming well-prepared plans and sticking to them. Long-term stability is essential to everything from an investment portfolio to savings to a retirement plan, but the current volatility of the global economy renders many of the usual investment options too risky.
There are, however, alternatives: Nav Athwal, also of Forbes, points out that in recent years real estate has outperformed more common investments such as stocks, stating that “over the 16-year period from 2000 to 2016, the S&P 500 yielded a 5.43 percent annual total return compared to 10.71 percent in real estate”.
What real estate offers is a secure, tangible asset, the physical bricks and mortar of which might be the best solution to protecting your money as the year comes to a close. Real estate investment’s recent modernization via the internet has provided even more defences against instability: much of the economic turbulence of today is coming from currency instability (think of Venezuela mentioned above), which means that finding secure investments in strong currencies is essential for safeguarding your money’s worth – this can now be done through Real Estate Crowdfunding, which allows you to make all your investments in US dollars.
A further escape from domestic economic trouble comes in the form of remote investing: if you live in a nation whose real estate sector is being weakened by political/macroeconomic issues, you can now easily invest in property abroad from your computer or phone, and at a low cost. This wide reach and low upfront fee also helps with portfolio diversification, thus further securing your money.
As Robert R. Johnson says above, good financial planning can be achieved by setting out long-term goals and sticking to them – consistency is key. Real estate provides the tools to do exactly as Robert advises – and, using the internet, do it cheaply.
Investing carries risks, including loss of capital and illiquidity. Please read our Risk Warning before investing.
