Analyze the conflicting tradeoffs inherent in every major financial decision before you make your decision.

The need to make good financial decisions arises at critical moments throughout your life. In these situations, you will often need to find some sort of compromise. We’ve incorporated conflicting tradeoff analysis as a key aspect of Opes Advisors’ financial decision planning process. By planning ahead, you can anticipate these tradeoffs, and minimize the pain. As Opes’ Financial and Mortgage Advisors steer you through conflicting tradeoff analysis, we consider your investments with the following criteria:

• Liquid vs. illiquid, and cash flow in the present and future
• Leveraged vs. non-leveraged
• Taxable vs. tax-deferred income
• Volatility vs. return
• Working capital requirements
• Transaction cost tradeoffs
• Lifestyle tradeoffs

The main conflict often boils down to liquidity. Do you have the autonomy to make choices, or are you forced to do things that you don’t want to do because you need cash? For instance, you could be forced to sell real estate because you need to send your kids to college, but it’s not necessarily a good time to sell. Liquidity becomes even more critical in retirement. By planning ahead, you can anticipate those tradeoffs, and minimize the pain.