Is It Time To Liquidate Your Assets?
All over the world, experts are working away to predict the economic state. For the last five years, they have been predicting a recession, but none of them was prepared for the COVID-19 pandemic. This has thrown more confusion and panic onto the future of the global economy, with many economists predicting a depression.
All this talk of economic crisis can be extremely worrying and cause anxiety. Especially when so many businesses have had to close their doors, and many of us have been confined to our homes. It’s as if we are heading into a recession in the worst financial position we could find ourselves in.
The important thing is not to panic. Panic will get you nowhere and often leads us to make big mistakes which end up leading to a worse situation. Now is the time to get planning.
It’s imperative to understand your financial situation and projections for the next few years, especially for those of us who have been investing or building a property portfolio. Currently, anyone with savings that they can access quickly is in a stronger position than those with their savings tied up in assets.
Liquidation isn’t something that we like to think about. However, it could be the one thing that saves your future and helps you have a stronger position for when the downturn ends. So it might be time to think about where your money is and whether you should free some of it up.
If you have an extensive property portfolio, then you should consider wholesale to free up some of your cash. A Wholesaler will use someone like Visio Lending to help get you some money back, then sell the property on to a real estate investor. You have probably worked with a wholesaler at some point while building your portfolio.
The stock market is falling, and you have probably been watching your shares plummet since the pandemic took hold. Experience will tell you that this will rise again, but it’s likely to get a lot worse before it gets better and some of the companies you have shares in might not make it. Talk to a specialist and look at the most attractive propositions in your investment portfolio. Then its time to cut the wheat from the chaff. Bailing out of any weaker shares now will free you up some money and leave the stronger ones to suck up any loss.
Cash flow is king in a recession, and it might not seem right to have money sitting around in a bank earning virtually no interest, however, this money could be vital to you in the long term and help you come out of recession in a strong position.
Speak to a liquidation expert and run through all of the options that are available to you. Keep your head calm and make healthy decisions which will support you and your family. You may find you need to revisit your plan a few times over the coming months. Stay ahead of the game, and you’ll be fine!