As a seafarer, finding the right investment opportunity can be challenging. Making the wrong investment decision can result in financial losses and impact your social and emotional well-being. In this article, we’ll explore the best investment ideas for seafarers, taking into account both financial and social factors.
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Investing in properties, such as purchasing a house, was once a popular investment choice for seafarers. However, recent years have shown disappointing returns, making it the worst investment choice. Therefore, it’s essential to consider the right investment options to secure your financial future.
Shares, stock markets, and mutual funds are the best investment options for seafarers. Here are four financial reasons why investing in these options is better than blindly investing in properties:
1. Liquidity:
Real estate faces significant liquidity issues, making it challenging to sell a property when required. This was evident during the COVID-19 pandemic when seafarers had to sell their properties at throwaway prices. Investing in mutual funds and stocks provides the necessary liquidity as you can sell them whenever you require money.
2. Financial commitments:
Investing in properties leads to higher financial commitments in the form of EMI. Fulfilling these commitments can negatively impact your social and emotional well-being. Investing in shares, stock markets, and mutual funds provides the flexibility to invest as per your needs and returns.
3. Returns:
You can enjoy good returns and cash liquidity by investing 50-60% of your funds in mutual funds and good stocks. This offers a higher return on investment compared to investing in properties.
4. Risk:
Investing a significant chunk of your investment worth in one property can be risky. If something happens to the real estate sector, your investment could be at risk. On the other hand, stock and mutual fund investments are more diversified, reducing the risk of investing in a single asset.
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Apart from financial reasons, social and emotional factors are also essential when considering investment options. Here are four social and emotional reasons why investing in mutual funds and good stocks is a better choice than buying multiple properties:
1. Family support:
Investing in mutual funds and stocks provides the necessary funds to support your family’s financial needs in your absence. In the unfortunate event of your demise, your family can use these funds to maintain their lifestyle.
2. Health and well-being:
Seafarers are prone to lifestyle-related health issues such as stress, obesity, and smoking. Investing in mutual funds and good stocks can provide you with the necessary funds to maintain a healthy lifestyle, leading to better social and emotional well-being.
3. Long-term financial goals:
Investing in mutual funds and stocks can help you achieve your long-term financial goals, such as retirement planning. With the right investment plan, you can accumulate enough funds to retire comfortably.
4. Sense of accomplishment:
Investing in mutual funds and stocks can provide you with a sense of accomplishment and pride. It is a responsible investment choice that ensures financial security and well-being.
Some people may argue that investing in property has social benefits, such as feeling like a landowner and getting more respect. However, this is not necessarily true in big cities, where people care less about the size of one’s property. Investing in property comes with social problems, such as non-commitment. If you buy a property, you commit to paying monthly EMIs, which can affect your work-life balance, especially when working abroad. You may not be able to spend enough time with your family, and your life may be hijacked by the need to work to pay the EMIs. This could lead to regret and missed opportunities with your family. On the other hand, stock and mutual fund investments offer more flexibility, and you can quickly exit if you want.Â
Conclusion
Seafarers should prioritize their financial security and social and emotional well-being when making investment decisions. Properties were once a popular investment choice, but investing in shares, stock markets, and mutual funds offers better liquidity, flexibility, and lower financial commitments. Investing in mutual funds and good stocks can also provide social and emotional benefits, such as supporting family financial needs and achieving long-term financial goals. Seafarers should carefully weigh their options and balance financial, social, and emotional factors to make the best investment decisions.