Years ago I was driving along a desert road outside of Las Vegas when I came upon a partially framed but abandoned home. I walked around the property, enjoying the wonderful view of the mountains to the west and the Las Vegas skyline to the East.
The home had the main floor framed including a stairway to where the unfinished second floor would have been. I tried to imagine what the finished home was intended to look like, and how it would have certainly taken advantage of the amazing views. I climbed the stairs and sat on the edge of the upper deck, thinking about the dreams of the owners who had started this project and, for whatever reasons, had given up on it. There was a recession going on at the time so I was sure the two were related.
After my initial walk of the property I tracked down the owner who was thrilled that I was willing to take the property off his hands at a much reduced price. I then quickly obtained a construction loan from a bank excited that someone was willing to borrow from them at such a difficult time. Fast forward a few months and there was a beautiful home sitting on the lot and my family was enjoying the views from that now finished second floor deck. We had been able to build the home in record time due to the constant flow of contractors who came by each day looking for work, and willing to work at almost any price. That abandoned, partially built home in the desert was worth double what I had invested into it just three years later. What appeared to be the worst possible time to take out a construction loan, ended up being the best possible time.
As a CERTIFIED FINANCIAL PLANNER™ professional I have always emphasized the need for creating a plan and sticking with it. I believe in planning. I believe in living an organized life. But at the same time, being a good investor also requires occasional deviations from our plan. It sometimes means turning right when everyone else is turning left, or seeing the positive when everyone else sees only negative. Investors should make long term plans but they need short term flexibility to take advantage of opportunities that arise. The irony, and the challenge, is that in many cases the best investment opportunities often look like disasters when they first appear.
To be very clear, I want to emphasize that a good long term financial plan is a key to financial success, however, every good plan should allow room for deviations. Stick with your plan generally, but also leave room in your plan to stop and look up, at those times when the rest of the world is looking down. Sometimes the best plan of action, is to change your plan.
Hi, I'm Dan. I'm a CFP® Professional.
Securities and advisory services offered through Commonwealth Financial Network®.
Member www.finra.org / www.sipc.org , a Registered Investment Advisor. Wyson Financial, 375 E Riverside Dr, St. George, UT 84790
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