Do you have a crystal ball? Without one nothing is assured other than the certainty that change will occur. And we have very little control over change in general. The question arises then, is your long term wealth creation in the lap of the gods or can you rely on something other than luck?
Impacts to long term wealth creation
Your vessel for long term wealth creation will need to stay afloat on occasionally turbulent seas that chop and change with the maritime winds. Riding the waves of inflation, taxation and legislation will require skilled piloting and a sturdy ship. There will likely always be something on the horizon to navigate around, this much we know.
Changes to income tax, national insurance contributions and corporation tax all require consideration. When married with changes to the Bank of England base rate, rising fuel costs and tighter legislation, the climate for an inspiring property investor can seem uncertain and perhaps discouraging. However, despite how the media portrays the world, opportunity will always exist.
A long term strategy for wealth creation, if structured correctly, will allow you to evolve and flex as the world revolves around you. The single thing that you will always have control over, is how you react to change. Implementing the right plan now will give you that ability to react and move with the times.
Are your ducks in a row?
Long term wealth creation will require a plan to endure the many changes that will occur throughout your lifetime. Preparation will be the most powerful tool available to you. Early planning to make sure your ducks are in a row will give you the resilience and flexibility to tackle whatever may come.
Investing in the right specialist advice will be one of the best investments you can make. Many people are put-off by the fees of professional advice. However, this is a very short term view and as investors we are only interested in creating long term gains. What may cost you hundreds today may save you hundreds of thousands further down the line.
Of course professional advice will help you to plot an efficient path through the labyrinth of decisions that is tax planning. How your assets are structured and managed will be significant to your long term wealth creation. It is important to remember that to every problem that you may encounter, there will be a solution. Sometimes the solution may be outwith the boundaries of your carefully conceived plan. This is when you need a Plan B.
Do you have a Plan B?
Having a strategy that will evolve and flex with the world around you will involve formulating a Plan B. What if something completely unexpected happens? What if a dramatic event changes how the world operates overnight – anything come to mind? Remember, we cannot change events, we can only change how we react to them.
So what is your Plan B? Have you considered, as part of your tax planning, a more international view of where is home? A creative mindset will see that opportunity exists far beyond the continent in which you live. The benefits of packing-up-and-heading-away can be multifarious as certain countries are extremely keen to attract foreign spending on their shores.
Knowing your plan will also mean knowing your options. One of the key principles in property investing is to always have multiple exit strategies for any purchase you make. The same rule applies to managing, maintaining and growing your wealth. Having a Plan B and also a Plan C will make you to remain resilient and strong. When the winds of change blow, will you be building a shelter or will you be building a windmill?
When opportunity knocks
Recognising opportunity is the difference between building a shelter or building a windmill. Some people will focus solely on how to protect themselves while others will take the opportunity to grow. If your boat of wealth creation springs a leak, do you grab a bucket or dig out your snorkel and go hunting for pearls?
Change is inevitable and venturing into the unknown will often cause apprehension and anxiety. People in general, enjoy the feeling of safety that comes with familiarity and past experience. After all, applying a degree of caution is a sensible strategy for thriving as a species.
Knowledge will give you the basis to make the right decisions at the right time. It is impossible to be an expert in everything so sometimes that knowledge will merely be understanding who to go to for advice. Our goal is to empower you with that knowledge, or at least enough knowledge to be smart with your assets and recognise opportunity.
To loop back to where we started, is your long term wealth creation in the lap of the gods or can you rely on something other than luck? Luck and opportunity are both things you have control over, through the way you interact with the world and by having your ducks in a row. Your knowledge, the right specialist advice and an intelligently formulated plan A and plan B will provide a sturdy framework for long term wealth creation.
Embrace change, because it is here to stay. Embrace your education, because it will be your most valued asset. Embrace the community, because we are here to support. Join us on Facebook, LinkedIn, Instagram or Youtube. Most importantly, start building your windmills today because one day they may come in handy.