When a person’s assets are wrongfully taken from them (stolen, misappropriated, or removed), it could be a while before their ownership is recovered. This period could actually span on several years, something a lot of such cases have seen in the past. This means, if you’re in the middle of a legal battle to regain ownership of assets that were wrongfully taken from you, it could be a long while before you’re recognized as the rightful owner and benefit from the financial gains involved.
What about My Lost Profits?
But what do you do when you actually regain the ownership? After a loss of profits for years, could you recover from the loss?
The answer is that’s possible, but there’s little hope of actually making up for the financial gains you could have had if the assets hadn’t been lost for all this time. Thinking about making up for those lost profits isn’t wise either, because, now that you’ve got back what was yours, trying to come up with schemes to make up for the lost profits quickly can be dangerous. You might fall in the trap of quick profits and invest poorly.
There are a number of things you must remember when you’re taking your recovered assets back into your investment portfolio. We’ve listed below 5 of these important tips for you. Stick to these and you won’t end up wasting away the assets you’ve recovered after a long, hard fight.
1. Don’t Lose Focus
By this, we mean you don’t get greedy about your returns and end up losing your assets to a poor investment. The trick is to invest smart and consider these recovered assets as new assets instead. Invest like you would any new capital and you’ll stay smart like you usually are.
2. Avoid Unnecessary Risk
That’s another way of saying what we just said above, but it also hints to something different. You should invest in a way that keeps you feeling comfortable no matter what kind of a turn the market takes in the times to come. If you get nervous, you haven’t invested right.
3. Timing the Market: A Big No-No
This is frankly a tip for any kind of investment at any time, but it’s especially important in the situation we’re considering in this article because, as we said earlier, people tend to make silly decisions when they’re trying to invest recovered assets... It’s a very bad idea to think you can jump in, make a big profit, and pull out of an investment before it goes low. Nobody can completely predict the market every time they go in.
4. Try to be Tax-Efficient
One smart way you can make a head start in recovering the losses of your previously lost assets is by making sure you invest more in accounts, such as 401(k)s and IRAs. This will enable you to grow your profits while paying fewer taxes.
5. Multiple Account Types
Taking a step further, when you’re investing your recovered assets, focus on using diversity in investment accounts you pursue. That way, you’ll be able to make combinations that help you reduce taxes as much as you can.