How to Overcome Battered Investor Syndrome: The Entrepreneur’s Source Shares Top 5 Tips for Smart Investing
What is Battered Investor Syndrome?
The performance of our financial portfolios is dependent on the economy, the stock market, unemployment, and many factors outside of investors’ control. As a result of owning reactive investments, investors have seen their portfolios yo-yo in value across the past decade.
Those who make reactive investments into their financial futures risk the uncertainty of whether they will able to pay their bills when they retire and whether they will be afforded the type of lifestyle they desire.
Just like the economy and stock market,many investors are feeling beaten up and battered. Those who are approaching retirement age are finding their retirement funds depleted as a result of the economic depression.
Some had to use their retirement funds to survive unemployment, and others experienced the market dilute their returns to the point where they are simply not enough to take care of themselves in the future.
Many will be unable to enjoy the lifestyle they planned for during the retirement years.
Gain Back Control through Proactive Investments
To overcome Battered Investor Syndrome, investors must reallocate a portion of their portfolios into proactive investments versus reactive investments. By doing so, they are able to deploy those funds into something they can control, like a franchise business.
A business is a proactive investment: It is something investors can put their resources in and have much greater control over their return. They are not completely dependent on the stock market or other factors out of their control.
Through diverting some of their funds, investors are able to take control of their destinies. Many people have the perception that a 401K is strictly to be used as spending money in retirement. This doesn’t have to always be the case. Many people have success in using the assets they put aside for retirement and shifting them into a new asset in their portfolio, like franchise business ownership. A business opportunity is something investors can control as a proactive investment.
Top 5 Tips for Smart Investing
• Diversification is the key: People should not put all their eggs in one basket. As a society, we have become comfortable with the idea that other people managing our investments are in our best interest. This is not always the case, and investors should diversify their portfolios with both passive and reactive investments.
• Reallocate a portion of your portfolio into a proactive investment, like a franchise business, versus a reactive investment.
• Have a clear plan: Before investing in anything, you should know why you are investing it. The Entrepreneur’s Source believes the first question that should be asked when considering entrepreneurship through a franchise business opportunity is “why?”
• Focus on long-term goals: Establish your desired Income, Lifestyle, Wealth and Equity (ILWE) and keep in front of them at all times. The ILWE creates a framework for long-term application while growing a successful business and focusing on both short and long-term objectives.
• Be open to guidance or support from others: It’s important to create an environment where you can focus on what investments will allow you to find the vehicle to achieve your goals. Enlisting a career transition coach or business coach will keep you on track and provide you with objective advice and support.
Take the First Steps at The Entrepreneur’s Source Webinar
To help aspiring entrepreneurs begin on taking control of their investments, The Entrepreneur’s Source is hosting a complimentary, educational webinar on Thursday, February 20, 2014 at noon EST.
Attendees will learn how to take control of their personal and professional future through business ownership by identifying opportunities and defining their desired Income, Lifestyle, Wealth and Equity goals.
Coaches will also be present to answer any questions. Registration is free at:http://www.you-2-0.com/webinar/.