We work with clients to find all types of investments that fit within their financial plan and help them grow their portfolio for retirement. With so many different options available, investments can look dramatically different from one person to another.

But sometimes we justify expenses and purchases by labeling them as investments. It might make us feel better or we might actually believe it to be true, but that doesn’t mean it’s actually a vehicle that will increase in value over time.

There’s a lot of gray area with this so we wanted to use this episode of the Money Wisdom podcast to have a little fun and play a game we’re calling ‘Investment or Not?’ The premise is pretty simple. We’re going to present Joel with a statement he might hear from a client about a purchase they plan on making because they feel it’s an investment. Then Joel will tell us whether it’s an investment and why.

By making sure you understand why these things do or don’t classify will help you avoid mistakes and protect what you’ve worked so hard to build. From real estate to cars to stocks, we’re going to cover many of the investment ideas that we hear about from prospects and clients.

If you ever need assistance with investment strategy, get in touch with our team and we’ll set up a complimentary meeting to discuss your situation.

[0:20] – Let’s a play a game: Investment or Not

[0:36] – 1) I have a long commute to work and need a reliable vehicle so I think it’s a good investment to spend more on a nice car.

[1:57] – 2) My wife always nags me about the boxes of old baseball cards I keep in the attic but I have to remind her that they’re an investment.

[3:33] – 3) We’re putting in a screened-in porch. It’ll cost a little more than we expected but it’s a good investment in our home.

[5:08]“] – 4) The company is doing well as it is but we can grow a lot faster by hiring this additional person so we’ve decided to make that investment.  

[6:08] – 5) We just found a piece of land in the mountains at what seems to be a really good price. We might buy it and eventually build on it or we might just hold onto it and eventually sell it.

[7:38] – 6) This stock is rising quickly. I’m investing in 100 shares to hopefully make a quick buck and sell it later this year to pay for a vacation.  

[8:43] – What we need to make a recommendation to someone.

Thanks for listening to this episode. We’ll be back again next week for another show.