This month, we’ve been spending a lot of time focusing on – you guessed it – money. One of the things that I see coming out of the current downturn is a lot of opportunity, especially for those who have the cash or liquid assets in hand to make the purchase.
Now, this isn’t anything new – every time the economy drops into a recession, people still make money, but your name won’t need to be Rockefeller to be able to shop like one.
Here’s the deal: right now, most folks are nervous, so they aren’t buying anything besides essentials. In the last weeks, we’ve heard the rumblings from a lot of luxury brands like Neiman Marcus that simply aren’t selling much of anything. It’s the same with cars, boats, fashion, you name it.
The housing market is in a bit of a conundrum, since rents have gone through the roof, but interest rates are approaching generational record highs. Despite this, people still need homes, and they are still going to move – to better opportunities, to retire, to begin a new life, and so on.
Now, this is easy to understand – for the last three years, we’ve been watching to see what is going to happen – or what is going to happen next.
People stopped buying everything that wasn’t essential.
A lot of workers lost their jobs and had to find new opportunities or fields to work in.
Unemployment spiked and receded.
401(k)s are struggling.
On the other hand, though, if you have the assets, these last few years (and the next ones) have been (or will be) an ideal time for purchasing bigger ticket items that you might not have otherwise.
Maybe that house you’ve been thinking about.
Maybe more car than you once thought possible.
Maybe just a once-in-a-lifetime trip for you and the family.
All of it is within the realm of possibility now, because the companies that are doing this type of business are going to be actively looking to make deals to generate income. In fact, companies that produce those kinds of assets are realizing they’re waaaay overstocked.
Now, you might be thinking, “Why are they telling me all this?” and the reason is simple: If you have the liquidity, now is the time to really think about your longer-term goals and make the most of your ideas about investments in the right things. I’ll go out on a limb and say it – anything you’ll pay interest on is going to be cheaper to buy and far cheaper in the long run if you can use cash to fund it.
…and that might also mean simply refinancing some existing loans you have out there, too.
We’re still a long way from getting back to where we were just a few years ago, but it’s important to recognize opportunities where you might be able to save a lot of money – or make it – in this fiscal year.
As always, though, my team and I are here for you when you need advice!
Have a great day,