Why many people can’t retire comfortably. It’s not rocket science that everyone wants to prosper and retire financially independent. Some make a conscious effort to do so, while others run out of time or find it too difficult to fathom. Unfortunately, many people of all sorts fall heavily short of retiring comfortably. Most don’t want to be filthy rich either.
Here are four reasons why many people can’t retire comfortably.
1. They just leave it too late to start accumulating wealth
Everyone wants wealth, but wait for the perfect place and time. No one has a blue crystal ball to know the perfect scenario. It’s not about ‘timing the market’, but ‘time in the market’. This concern causes many to wait too long before starting. Their personal circumstances are more likely to change, making their start more difficult. You need to give yourself time to see capital growth, reduce your debt and increase your investment income. If you can start, you should really look to commence your wealth accumulation. If you are unsure, it’s time to get advice and discover what needs to be done so you can start. Don’t leave it to the last minute. It will limit your ability to retire comfortably.
2. Fear of loss
Fear is a factor why people can’t retire comfortably. We all work hard to earn an income and we all don’t want to work forever. It’s a regular occurrence that people get scared taking the first step. Going beyond is daunting and fearful. However, making no change is often a greater risk to your future wealth. Buying property is a long-term asset. The more time you give yourself, the longer time frame you have to see the capital growth and minimising the chance of loss. Why fear a loss when you plan to hold your property? Many successful investors buy and hold indefinitely.
Buying property is a big commitment and also causes fear. Don’t forget the rental income will also support the costs of holding the property. If you can afford the property, why become anxious if you are buying it to keep? Once you have bought an investment property you will soon discover what a magnificent financial decision it was.
3. I’m still researching and understanding more about it
The old saying ‘knowledge is power’, but have you heard ‘curiosity killed the cat’? Some people seem to get caught up in wanting to know so much, that it becomes a bigger problem. They identify that there is so much more to learn. That’s the paradox of knowledge.
The way to overcome this dilemma is to acknowledge you may not know it all (you probably never will), but you do know enough to get started with your investing. Ultimately you learn more after you buy an investment property that researching the ins and outs beforehand. Getting property advice is valuable. At Crest Property Investments, we consciously learn about your situation and then present the right investment property for you.
4. No patience
When buying a property, most have a long-term perspective, but it’s still not uncommon to meet people wanting to see the ‘treasure at the end of the rainbow’ in the first 12 months. Patience plays a vital part in experiencing wealth. Concentrate on ways to reduce your debt, diverse your property portfolio and the rest will take care of itself. A traditional buy/hold strategy is a smart strategy to manage your patience and expectations. Many successful investors adopt this simple principle.
We really hope you enjoyed this article and helped put some things into perspective. Many people can’t retire, but this doesn’t have to be you. Please remember that we are experienced property investment strategists who offer unbiased advice to nurture you through the process.
Do you want help?
If you’d like to learn more about buying property, please don’t hesitate to contact us. We would welcome the opportunity to help with your property purchase. Our YouTube channel and Market Insights also provide a wealth of information to assist you with many areas relating to property investments.
While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you want to learn more, please contact us. We welcome the opportunity to assist you.
Dec 2017
