Prudent Planning: Taking the Long View

Would you stick around for a web page taking longer than10 seconds to load? Or wait in line more than 15 minutes? Most Americans wouldn’t, according to new research reported by WebProNews. Along with recent polls suggesting that personal responsibility is declining, these studies suggest that we’re also fast becoming a nation defined by instant gratification. But even in today’s lightning-fast world, reaching goals depends on careful planning and commitment.

The world of investing offers plenty of opportunities for instant gratification and some quick cash. Encouraged by less than scrupulous advisors, investors can choose from a variety of stock and bond options that fluctuate by the hour or by the day. But according to Jason Hartman, those kinds of transactions leave the investor with immediate spending money, but little in the way of the long-term returns possible from prudent investing in rental real estate

The 10 Commandments of Successful Investing that form the framework of Jason Hartman’s strategies for creating investment wealth emphasize the need for knowledge, control, and caution. Commandment number four states, “ Thou shalt use prudent financial planning techniques.” And prudence – caution combined with knowledge – leads to success in real estate investing, where long-term efforts, not quick turnaround, yield results.

Prudent financial planning, in real estate as in other areas, establishes a road map for a long journey, not a quick jaunt. It begins with knowledge – of yourself, your current situation, and your goals. Knowing your own personality creates the foundation for any kind of plan. Where do you fall on the spectrum of instant versus delayed gratification? How long are you willing to wait for outcomes?

Another consideration is tolerance of risk and need for security. How much are you willing to gamble on the outcome of your investment? Planning your investments also includes outlining goals for your investing activities – some income to supplement a pension in retirement, freedom from the working world, amassing wealth? These things are essential for getting the most out of working with a qualified financial counselor – another aspect of “prudential financial planning.”

Planning prudently sets the stage for long-term progress towards a goal. Investments in rental real estate offer returns over time, and stability from an asset that everybody needs: a place to live. As Jason Hartman points out, other types of investments have a limited life with a short-term yield. But careful planning backed by expert advice makes it possible to reach those goals of financial freedom through investing in rental properties – even though it takes more than 15 minutes. (Top image: Flickr | ComputerHotline)

The American Monetary Association Team

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