There are two types of investors in the world. Those that expect others to reach their financial goals for them and those that place that responsibility on themselves. Self-directed investors understand that “I” is the most important letter in IRA. This is your individual retirement account. Sure, it’s easier to blame others for your financial failures and for your poor investment returns. But how does that actually help you get closer to accomplishing your retirement goals? The blame game masks our personal fears and insecurities. If you don’t care more about your nest egg than those that you keep blaming for your financial situation, then shame on you.
Taking personal ownership and responsibility about your financial destiny is essential to being successful with money. I hear things like “JP, I’m not good with numbers and financial stuff.” My response is “well, what can YOU do to improve on that in some meaningful way?” Don’t be comfortable with your weaknesses, work on them. To do so, it is critical that you make a commitment to getting comfortable with being uncomfortable. Attend a workshop, read a book, register for a financial blog, get engaged in the solution. AZREIA offers members a comprehensive list of educational opportunities, so I encourage you to take advantage of them. Invest not only in real estate assets but in yourself as well.
Today’s volatile stock market environment has led many Americans to reconsider their IRA investing strategy, placing more importance to diversifying a larger portion of their savings into non-correlated asset classes, such as tangible real estate properties. At Vantage, we frequently remind clients that “You can make money or excuses, but not both.” If you already learned that lesson, congratulations! You must believe in yourself and what you are capable of. Having faith in yourself is half the battle. Will you make mistakes? YES! Learn from them and move on. Forgive yourself quickly and figure out a way to not make the same mistake again. Actually, take it one step further and share your mistake with others so they don’t commit the same mistakes either.
Investing isn’t about perfection, it’s about progress in the right direction. When you are unwilling to accept the undesirable financial position you may be in and work tirelessly to improve it, you will reach true financial independence. If you are tired of riding the Wall Street rollercoaster, now is the best time to reflect about the investing choices you have made with your retirement account and consider making a larger allocation into real estate opportunities.
By J.P. Dahdah, Chief Executive Officer Vantage Self-Directed Retirement Plans