Financially Fit & Fabulous – Planning long term: How to move to the next level financially

IS the time right for new action in your investment plans? One good way to find out if the time may be right to move out of your comfort zone is a review of the performance of your existing investment portfolio. Another influential factor is the presence of new opportunities.

This week we have rolled out the concept of ambition to provoke you to wake up from your slumber and reach higher. Consider your long term plans and measure results, if your goals are still too far away.

The experts advise that you should routinely check on how your plan to reach your investment goals is proceeding. Check the reality of returns against your projected growth path. Talk with you investment advisor to conduct a review of your portfolio and determine what changes may be necessary to better position your portfolio to achieve your goals.

If your investment is not performing as well as projected, depending on your objectives, timeline for investing and risk appetite, it may be time to consider moving e funds into another area., after assessing the risk involved, of course.

New opportunities

Apart from your own long term plans, from time to time, new opportunities may arise in the form of property available for sale, business partnerships, new investment products, or even a business idea of your own, that came to you out of the blue.

We advise that research is always a good place to begin with anything which is new and looks enticing.  To take any other kind of action without forethought and doing your due diligence, is nothing less than gambling.

Measure the performance of one asset class or investment product against another, in deciding which one might be a place to put more or less funding.

If it is a new property, consider the potential for leasing or rental.

You will also need to assess the environment, as economic conditions  may not suit a new clothing store for example. General market conditions will affect your choices.

Sometimes when you feel the itch to move funds around, the best thing to do is to take a cold shower and wait. The timing may not be right.

Consider adding value to increase income

If you run a business and you want more income flow, you can increase the value available to clients from your business and use social media to market this to them for higher income flows.

By careful thought and small tweaks, consider how you can add value to services that you offer, or increase income without a large outlay of cash. You can outdo your competition by careful thought, which is much better than quick action that you might later regret.

Prioritise and plan

If after your assessment of your various investments, you really  see the need for change, then it is advised that you decide which steps should be taken first and over what time frame. 

You may need funding in your first phase, so assess the pros and cons of liquidating existing investments versus finding other new sources. Your options for funding for new investments include grants ,  bank loans, crowdfunding, angel investment, invoice financing, and even community funds.

Having put all the elements of your plan together, then proceeding to implement, remain vigilant to any adjustment that may be required and be sure to keep your financial adviser cued in as you navigate your opportunities is always a plus in the process.

Latoya Virgo is a licensed Investment Advisor from Scotia Investments Jamaica Limited.