What Are Your Investing Goals For 2024?
To invest means to:
“Expend money with the expectation of achieving a profit or material result by putting it into financial plans, shares, or property, or by using it to develop a commercial venture.”
What the definition of investing doesn’t take into account are the non-monetary elements that go into some investments and the non-monetary returns that come out of them. You hear about somebody putting their time and energy into an investment and hearing about how they got more than money back from another investment, such as the pride or satisfaction of accomplishing a goal.
The simple definition of investing barely scratches the surface of what investing truly entails for many investors, who are not content with going with the flow. To them, it’s more than about putting in money with the hope of getting money in return.
Most investors put little thought into investing. They’re content with putting their money into a 401(k), entrusting their money to a financial advisor, or investing in what everyone else is chattering about. For them, it’s about money in and money out. But for more principled investors—investors who invest with a purpose—investing is about more than just that. It’s about investing with purpose and with a goal in mind.
Considerations For Investing With Purpose:
Invest more than money.
Don’t put your investments on autopilot. Expend some energy and time into your investment decisions. Explore all your investment possibilities. Look around and ask yourself if the traditional way, the Wall Street way, is cutting it for most investors.
Ask important questions. Educate yourself. Explore alternatives to traditional assets.
Before making a monetary investment, invest in yourself.
What is your endgame? What is your investment purpose, and what are your investing goals?
Are you investing with one of the following purposes in mind?
Many investors seek wealth. They are seeking to grow their portfolio and are willing to accept a higher degree of risk to accomplish that feat.
Ask yourself these questions as you seek wealth. Do traditional Wall Street investments and instruments offer a reliable path to wealth? Or does market volatility constantly put your portfolio at risk? Are there alternatives to Wall Street that would better serve your wealth goals? Ask yourself: What do the ultra-wealthy invest in to grow their wealth? The answer might surprise you, as the top two investments preferred by the ultra-wealthy do not involve Wall Street.
The primary purpose for many is to secure financial stability—the ability to withstand market downturns and recessions. Ask yourself if your current portfolio is shielded from recession and safeguards against inflation. If you lose your job, will your portfolio compensate for the loss of income? Is your retirement secure based on your current portfolio? If you’re planning to retire this year and the market crashes tomorrow, will you still be able to retire comfortably on schedule?
Many sophisticated investors are not only investing to meet their current and future needs but also the needs of future generations. They invest with the goal of leaving a legacy. When the day comes when you will no longer be around to direct your finances, do you have the investments and safeguards in place to provide for future generations? Are you allocated to the right investments for accomplishing this goal?
More and more investors are aligning their portfolios with their ethical beliefs, be it religious, environmental, or social. They invest in assets and companies that share their beliefs and avoid companies and assets that they deem are detrimental to society, culture, the environment, etc.
Some investors invest with the goal of buying back their time. They want to be able to walk away from their jobs if they have to. They want to enjoy their families and do things now while in the prime of their lives and health. They want to contribute to charitable and meaningful causes. Ask yourself if your portfolio would allow you to walk away from your job tomorrow if you chose to. Do you want to set your own schedule?
Why do you invest?
Are you investing to grow wealth, for financial protection, to build generational wealth, to make an impact, or to buy back your time?
Does your current portfolio align with these goals? If not, maybe it’s time to invest some energy, effort, and thought into your investments and find investments that align more with your goals.
Michael Foley, president and CEO of Humabilt Capital, oversees the entitlement process, funding, and operations for Humabuilt Capital. Mr. Foley has been a full-time real estate investor since 1995 during which time he has developed hundreds of single-family homes, townhomes, condominiums, and apartments. Mr. Foley started his investment ventures in Long Beach, California, and has expanded to Apex and Durham North Carolina. Mr. Foley is a graduate of the University of California at San Diego.