TOP 3 risks when working with property:
1. Exaggerated investment expectations and falling asset values.
2. Change in tax legislation.
3. Inflation.
In the life of every investor, there will be a situation where the value of current assets is sufficient to live comfortably and the priority should be to try to protect them. Investment opportunities with the promise of tens of percent appreciation sound great, but are they worth the risk of total loss?
Set a value, once reached, that will reduce the riskiness of your investments and focus on preserving the long-term value of your assets. We'll be happy to advise you on how to do this.
It is not possible to prepare for the long-term impact of changes in tax legislation. Fortunately, we live in a relatively stable country where such changes rarely occur. Currently, the tax policy for cryptocurrencies and how to tax the proceeds from this type of investment correctly are the most discussed issues. If you want to know more, just get in touch.
Many people work hard all their lives to build assets that will ensure a comfortable old age. There is nothing worse than losing this hard-earned wealth to ever-increasing inflation.
If I had one million crowns in my account in 2000 and left it lying around, the real value of the money is only £625,000 at today's prices.
If I invested that million in 2000 in, for example, the Ray Dalio All Seasons fund, I would be worth CZK 1 566 000 at today's prices.
So the only protection against inflation is not to let the money "lie fallow" and instead work with it. If you're wondering how to maintain the value of the wealth you've built, we'll be happy to find the right way for you.