Dr. Clemen Chiang is the CEO of Spiking.

Financial acumen is a valuable quality in any entrepreneur. The problem is that entrepreneurs often focus on strengthening the financial health of their businesses without giving the same attention to their personal investments.

As an entrepreneur myself, I understand the push and pull of balancing the demands of both business and personal finances. But I firmly believe that you have to put your own oxygen mask on first. Investing in your financial future will give you the security and experience you need to keep growing your business.

In a previous article, I introduced a framework called “the COSY start” that helps entrepreneurs balance business and personal investments. COSY stands for cryptos, options, stocks and saying “yes” to investing. In this piece, I’ll dive deeper into a more comprehensive wealth management strategy I call “COSY LAND.”

COSY LAND is a fusion of two powerful components: the high-growth potential of COSY and the long-term security offered by LAND (leverage, assets, negotiation and deed). This holistic approach can help you diversify your investment portfolio and take advantage of both digital and tangible wealth-building opportunities.

COSY: Leveraging Growth Opportunities

The COSY framework prioritizes fast growth and liquidity. If you want to buy or sell an asset, you can act immediately.

• Cryptocurrencies have become mainstream in the last few years and can offer exposure to potentially high returns. Bitcoin was the best-performing asset class from 2011 to 2021 and is also outperforming other asset classes in 2024. Cryptocurrencies experience significant price volatility, however, and require careful risk management.

• Options, a category of derivatives, give you the right to buy or sell a security at a specific price within a set timeframe. You can buy options to hedge their positions or amplify their returns with limited risk and less upfront capital than a stock purchase.

• Stocks are a vehicle for reliable financial growth. As of January 2024, the S&P 500 offered a 10-year return of 163%, with an annualized return of 10.2%. A well-diversified stock portfolio allows you to profit from the appreciation of well-established companies.

• “Yes” illustrates the mindset of an investor ready and willing to capitalize on new prospects. Embracing this open, curious attitude helps you see the value of seizing the right opportunities at the right time.

LAND: Building Long-Term Value

LAND complements COSY by focusing on tangible assets that provide stability and long-term appreciation.

• Leverage enables you to use strategically borrowed capital to invest in real estate or other income-generating assets. When used wisely, leverage can maximize your purchasing power and accelerate portfolio growth without taking on excessive risk.

• Assets in real estate can provide steady income streams or capital appreciation over time, potentially balancing the volatility of financial markets. U.S. investors consistently rank real estate as the best investment vehicle, above stocks or mutual funds, bonds, savings accounts or CDs, gold or cryptocurrencies.

• Negotiation skills can help you identify and secure successful property deals. By understanding market conditions, financing terms and property values, you will be better positioned to negotiate for your ideal outcomes.

For example, in a standard property sale, the owner lists the property and pays a commission to an agent to find the right buyer. But I have employed a creative negotiation technique on past real estate deals, approaching the seller with a mutually beneficial proposition. What if we negotiate a lower selling price with a plan to work together to redevelop or rebuild the property or obtain a higher plot ratio for the land—eventually selling for a much higher asking price?

• A deed represents concrete ownership of a property, which is an important goal for many investors. Owning a deeded property allows you to build your long-term portfolio or plan to pass it down to future generations.

Planning For The Short Term And Long Term

As entrepreneurs, we face unique financial challenges. Our income can be irregular, and our businesses often require significant reinvestment. COSY LAND addresses these challenges by building a wealth management portfolio that provides short- and long-term benefits. COSY liquid instruments can quickly be converted to cash to address business downturns or opportunities. LAND’s tangible, stable investments can build value steadily over time. Together, these two components form a balanced strategy for building cash flow and security.

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