your property price dropped like crazy? Do this now

So there’s this news of non-stop property market price drop…

Link to the piece of news here.

Do you own an apartment in Hong Kong? Has it started to worry you? It’s understandable because it might make up a huge share of your investment portfolio. In this article, I’ll share some common investment problems and tips on how to overcome them.

Your investment goals determine your success rate

Do you invest to:

A. Maximize profit?

B. Maximize opportunities to increase gains to achieve your life goals?

If your answer is A, I wish you good luck on your investment journey. I can already be 100% percent sure that you will have an emotional ride with disappointments much larger than your achievements because you have thrown yourself into a rat race with moving targets.

If you answer B, you have already taken half a step towards building a healthy investment system that can work for you to achieve your goals. Money is only a tool to give us options to achieve our life goals. If we are emotionally detached from money when investing, we can be more rational and avoid 90% of the “regretful actions”.

Simple strategy

I’ve mentioned in this previous article how to put together an all-weather portfolio that can go through any tough times - by having a balanced combo for expense management tools (e.g. emergency cash, insurance, etc) and incoming wealth management (e.g. equities, bonds, funds, etc.).

How much does your existing property take up your asset pie? If it’s more than 40%, any fluctuation in this sector will hugely affect your entire portfolio value. In this case, you might want to regroup your portfolio mix - get a trusted financial advisor or a life planner (book a free enquiry session here) to help to set proper goals, and work backwards to see what tools are suitable for you in your specific situation.

Once this portfolio is set up, all you need to do is manage the constant mix of the pie (e.g. 70% stocks + 30% bonds) and redistribute them to this percentage whenever there’s a discrepancy of a certain percentage (e.g. 5%). This act of selling some assets in your portfolio and buying others to help maintain your target asset allocation is called “Rebalancing”.

Simple ways to rebalance your investment portfolio

Save yourself from getting lost in failed investments

Everyone has specific limitations in resources but there are always rational and systematic ways to manage our assets to make them work towards our life goals. Book a 30-minute discovery call to get started with your life planning via this link or the button below.