![]() ![]() So, be sure to seek the advice of a qualified investment professional that you trust to help explore these options further. Please note these strategies are traditionally for more experienced and sophisticated investors. Instead, you use a slice to help propel your wealth and returns while ensuring your core next egg is not put at significant risk. You don’t bet the nest egg with aggressive, opportunistic approaches. Think of this slice of money as a satellite investment. With a more aggressive risk tolerance and after considering the above options, perhaps you take a slice of your savings/additional income and look at opportunities to supercharge your returns with more aggressive investments such as hedge funds, private equity or asset class, business or industry-specific investments. If you are looking at wealth building, perhaps you can start looking at investment real estate or alternative investment vehicles that can help protect and grow your wealth. Based on the additional amount you can save, update the time horizon for each goal and determine the most appropriate way to invest for that timeline. With a more moderate risk tolerance, perhaps you focus on getting to your financial goals faster. Think of the extra payments as earning you a guaranteed return on your money based on what your mortgage rate is. If you plan on living in your home for the rest of your life or at least the very long term, consider paying down your mortgage. Here’s how to navigate that based on your tolerance for taking risks: Conservative Risk Tolerance You also still have more resources available to try to take your finances and your goals to the next level. OptimizationĪt this stage, you have your fundamentals in place and have put in the work and time to go beyond your foundation. This may involve doing more with less (i.e., a wedding), extending the timeline (i.e., a home purchase), or putting a goal on pause until a later date (i.e., buying a second property). If you don’t have enough time or savings to reach them, you’ll want to discuss making some trade-offs. My colleague Erik Carter offers more ways to think about the priorities here.Ģ) Use a calculator like this to illustrate how long it might take to save that total amount needed.ģ) Next, prioritize those goals based on their importance. For a wedding, it could be somewhere in the middle of those. Starting a family could be $5,000 to $10,000 to help pay for maternity costs and baby prep. For a home, that could be 20% of the value for the down payment. Here’s how to prioritize in those instances and some strategies to help you stay on track:ġ) List the financial priorities that matter most to you and some general idea of what you need to save to get there. For some, it may be a first-time home purchase, getting married, or preparing to start a family – maybe it’s all three at the same time. We all have various goals that are important to us.
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