by: King San Josè- Santos,RFP,CFC,LFA,CMA,CREFA
Chief Financial Planner | Registered Financial Planner
Certified Financial Consultant for Investment & Finance | USA & Canada
Most people get confused when investing. They tend to intertwine between investments for capital appreciation and liquidity purposes.
We can simply identify your financial goals by knowing your financial objectives:
Capital Appreciation: It is distinguished by the increase in the price or value of the asset. If you are an investor, most of the time, your objective is capital appreciation. You can measure asset appreciation by computing the difference between the current price and its purchase price. Capital appreciation is unrealized earnings and relies mostly on changes in capital.
Capital Gain: It is said to be capital gains when you realize the earnings. Most investments rely on the appreciation of capital value such as stocks, real estate, etc.
Capital Appreciation Vs. Capital Gains
To simplify the terms, Appreciation turns to gains when you liquidate your investment and realize your gains. There is no tax in capital appreciation, you are only taxed on capital gains.
Tax planning during liquidation: You must plan the liquidation of your assets especially if you are liquidating a significant amount/ value. Unplanned liquidation may affect your profitability. Your SJP Wealth Manager can help you during this process.
3. Fixed Income: It can be described as a type of investment that continuously distributes fixed interest or dividend payment until maturity. The most famous fixed-income investments are bonds and government securities.
* Inlife offers now 2 products that can help you with your fixed-income requirements.
Our JPMorgan Global asset fund and Fixed income traditional products. JP Morgan offers variable interest monthly income ranging from (+/-) 1.5% to 15.5 % with an average rate of return of 4.5% to 6.5%. What is nice about this product, it also gives your portfolio a small amount for capital appreciation. Compare to real estate investment, JP morgan can almost mirror your real estate investment with less hassle of maintenance, marketing, and tax requirements.
In Summary
When you are investing, it is important you know and understands your financial goals if it is for capital appreciation or expanding your financial liquidity. This will help you manage your expectation and also find the right investment material to complement your object. Some individuals and families hire independent wealth managers to fix and create a proper case study to find a clearer way to get their financial goals.
SJ&P offers WealthPro (TM), a flagship wealth management service that helps clients create the right plan for their financial goals.
How much capital do you need? , How long do you need to hold the investments? What is risk? What other things do you need to consider when buying your investment? These are all answered by your wealth manager.
Ready to start your investment? Schedule a meeting today with our International Certified and Licensed Wealth Managers.
Mr. King San Jose- Santos is a seasoned consultant, working as Chief Financial Planner for San Jose and Partners | Insular Life.
He is a Registered Financial planner title holder for personal finance management and a Certified Financial Consultant title holder given by International Financial Consultants, Canada, specializing in corporate finance and investment management.
With multiple licenses and other sub-specializations such as real estate investment and certified market analyst, he helps clients reach their financial goals.
He is an expert in wealth management and financial planning for affluent and high networth clients.
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