Managed Funds Versus Investment Property – Which Is Best For A Business Owner’s Retirement Strategy?
For anyone who owns a business the day will come when they wish to retire and the sooner they make plans for that the better. By plans, we are talking about financial plans and that is why speaking to financial advisors to discuss investment planning should be arranged. Investment planning and creating an investment portfolio is a surefire way of ensuring that when you retire and hand over the reins of your business to someone else, you are financially secure.
Your discussions with your financial advisors will include them explaining to you the many choices you have for investing. Investing planning is not just about how much you are going to invest, but the diversity of those investments, which asset classes you are going to invest in, and which individual investment opportunities you are going to select.
Two of the investment options which are most discussed and compared are property and managed funds. Property investment is investing in either residential or commercial properties or both. Financial benefits accrue from either rental income or the increase in property values, or both. Managed fund investment sees multiple investors pooling resources, and the value of their individual investments, determine what their share of the total return is.
Both property investments and managed funds investments have their pros and cons, which we are sure your financial advisors will discuss with you when you are assessing which investments will ultimately fund your retirement. To give you a heads-up, we have highlighted their main pros and cons below.
