Make a plan!

02/01/2022

Making a plan sounds logical, but many expats just start investing without knowing what they want to invest in and that can have dire consequences along the way.

Make a plan and prepare yourself optimally.

Determine the amount you can invest

An important step is to determine which portion of your assets is eligible for investment. It is wise to invest with money that you can spare for a longer period of time. You should not (want to) invest money that you will need again within a few years. Therefore, look at your total assets and determine which part you want to keep on hand. For example, for anticipated expenses such as the purchase of a car or a house. But also think of an emergency fund for unforeseen expenses.

Invest long term

You have probably heard it before: you invest long term. That is not without reason. The time factor is very decisive for whether you will ultimately achieve your goals. Long term is ideally 10, 20 or 30 years. The term you wish to invest is also referred to in technical terms as the investment horizon. The longer the investment horizon, the greater the chance that your return will be average. The shorter the horizon, the greater the chance that the return achieved will deviate. So think carefully in advance about how long you can spare part of your assets. Do this on the basis of your concrete goal. For example your pension, the study of your children, or a supplement to your income.

Your investment plan

Before investing, it is important that your goal is clear. You need this insight to determine how you are going to invest and how much risk you want to take. Is it your pension? Do you just enjoy investing? Or do you want extra income for a nice trip or a house? Different goals entail different investment styles and different risks. Therefore, determine which conditions your plan must meet.

We recommend that you consider the following questions:

Investment target

What do you want to invest for?

Target capital

What power do you need for that?

investment horizon

What is the term that you can invest?

Expected Return

What is the required/desired return?

Expected risk

What is the risk you are willing/can take?

Can't figure it out?

We are happy to help you personally to make a plan. You draw up a (comprehensive) financial plan in consultation with an independent financial advisor. Contact us today: info@expatwealthatwork.com