There’s conventional wisdom and then there’s thinking for yourself and assessing what’s right for you. When should you follow conventional wisdom when it comes to your finances and when should you look at doing something differently?
Real estate is something a lot of people think of as a good investment. Right now, things are selling ridiculously high. Like the stock market, the values go in cycles. Sometimes real estate is a great investment and other times, you need something with more liquidity. Don’t buy property unless you’ve got a purpose and a strategy for it.
When it comes to debt, is there such thing as “good debt” and “bad debt”? There’s a lot of freedom that comes from paying off all debt. This might even mean paying off the house, even though some would call it “good debt.” Talk to your advisor and find out if paying off your house earlier would be beneficial to your financial plan. There’s an emotional side and then a numbers side that you need consider before taking any drastic measures.
If your investments aren’t performing, should you change them? Focus first on whether you’re diversified properly and allocated correctly. Then you can determine if you need to make small tweaks along the way.
Finally, conventional wisdom says retirement is for relaxing. While it can be a relaxing time, you might find yourself busier than ever! You may decide to try something new or travel the world once you aren’t tied to a job. So, make sure your retirement plan reflects the retirement lifestyle you want to do.
Listen to the entire episode or skip ahead using the timestamps below.
0:28 – Nathan just returned from a trip out west!
2:40 – People like to think real estate is a good investment.
7:00 – Get rid of bad debt …or all debt?
11:19 – If investments aren’t doing well, then what?
13:49 – Retirement is a time to relax.
A Point Of Wisdom:
“You’ve got to look at what you’re trying to accomplish, what your goals are, and then set that stuff in writing so you have something to follow, something to shoot for.”