However, when it comes to our assets, our strategic vision becomes blurred and oversimplified to a very dangerous extent. Most people are only concerned with the short-term return they will get on their cash. And they lose sight of the ultimate goal, which should be the sustained growth of everyone its assets over the decades. As we have already mentioned in The investor Resilient for the month of July:
«We’re all capable of making good investments; we simply need to seek advice from someone who can help us avoid making a lot of bad ones.»
But the most important thing is to realise that the long-term performance of our assets will be the sum of these two, the investments the good and the bad. And also the future growth we are able to deliver for the rest of our assets, which do not are investments in the strict sense of the word. Despite this, most people focus on achieving the highest possible rate of return on their cash, keeping track of their returns on a monthly, half-yearly or annual basis, but few look beyond that. Property translates into rental income and passive capital gains which, rather unremarkably, will accrue of their own accord over the years (however, as we have explained in a previous post, we dare to challenge some of the principles of Kiyosaki). But what is undoubtedly the biggest mistake is that obfuscation due to immediacy on the return on our cash, which requires no rigour whatsoever.
We often talk about investors, when in fact we should be talking about managers. Although most people are only concerned about one investment Given its short-term benefits, the right thing to do would be manage and/or to manage oneself our own assets for their long-term growth. That’s the best way to make money over the course of our lives. On the other hand, focusing solely on the desire to achieve a 10, 20 or 30% return on the stock market every 31 December may have negative consequences for the rest of our long-term wealth.
The de-taxation The gradual diversification of our assets as they grow is a winning strategy in the medium and long term, as when a portfolio is still in its early stages it is much easier to
to eat the legal framework to ensure that its growth takes place in an environment of low taxation. On the other hand, when one’s wealth is already considerable, the de-taxation what can be obtained legally is much more limited, although by no means negligible if it is done imaginatively and expertly.
The Strategy, we must devise the overarching strategy ourselves, if possible with the help of a director or Counsellor, but always adapting it to our family’s current and, above all, future needs. The other key factor is the Rigor. Deviations from our strategic wealth plan due to a lack of rigour are the most common causes of poor growth (or decline) in our wealth over the years. Of course, all of this must be updated regularly in line with changes in our lives: career, family, geographical, etc.
The Championships are among the representatives (or self-advocates), whilst races or matches are rife with investors who are solely focused on the glory of immediate, one-off results, thereby putting those whose sole aim is to become champions and go down in the history of that sport at serious risk of injury or accident.