This week’s episode of Secrets of the Money Masters shows our panel discussing Kate and Tony’s love of property investing. Ironically, many of the lessons our experts spoke of before the pandemic, have played out before our eyes since.
One of the biggest lessons? Residential property has no liquidity. And if you need access to money, you can’t sell the garage to get some cash.
As Rod Dickinson explains on the panel, as people get older, they need some liquidity. This factor has never been more evident after COVID-19 – where Tony and Kate are affected by their tenants defaulting on their commitments, and they have lost income from their own business.
It’s a Lego effect situation and has made managing properties more stressful for landlords than it has been for many years. It doesn’t mean, though, that Kate and Tony are doomed to financial ruin. Rather, a strategic plan that assesses all their assets, and takes into account their changing needs and future dreams can take them to the next phase of their financial lives.
This is where financial planners shine. I love the power of a good plan, and nothing makes me happier than seeing on paper the intention for my life. More than ever, people need to look at how they expected their future to be, and what will need to change. And while change is incredibly hard, this process is not all bad. In fact, sometimes changing circumstances can bring wonderful new experiences and opportunities.
In the new world order, I suspect that those who are to be financially successful will have taken the time to form a plan for their financial future for 2021 and beyond.
So enjoy getting to know Kate and Tony, and their approach to money, as well as our experts with their collective wisdom.