In the Daems house we are planning where to go for our summer holidays.  Cassie and I are quite enjoying deciding where to go, what hotels are ‘family oriented’ enough and ensuring we get decent value for money.

Holidays are great.  The ability to spend some uninterrupted time with your family or friends, the time and space to relax and the opportunity to recharge your batteries.  If you’re anything like me, a little bit of sun helps too!

However the ‘feel good’ factor about flying off to sunnier climbs can have a down side when it comes to managing our longer term wealth.  Let me explain how…

Over the past few years there has been significant growth in the number of companies offering investments in holiday resorts around the world.  Some of these firms talk about how you can use your pension to invest whilst others focus on the investment of your savings.

As I knew I wanted to write about this subject I looked at a few of some of these companies websites and what I found was interesting.  Many looked similar to the travel websites we’ve been browsing recently.  There were plenty of photos of beautiful beaches, Sun-kissed landscapes and happy people having a great time.

However during my brief period of browsing I couldn’t find any information on the risks associated with this type of investment, any of the implications associated with using your hard earned money to invest in yet unbuilt holiday resorts or details of the potential costs with making investments of this type.

I can understand why people might be tempted to use their savings, pensions and investments to invest in holiday resorts abroad.  The emotional connection we have to the time we spend on our holidays is generally really positive.  However it’s important to point out that your enjoyable time on holiday isn’t the same as using these resorts to achieve your longer term financial goals.

Whilst I can understand why making an investment in these resorts looks superficially attractive I’d suggest that there may be a better approach so that you can achieve your longer term financial goals.

I’d suggest that it’s worth conducting detailed research into any ‘investment opportunity’ like this and ensure you ask loads of questions to clarify your understanding including….

“Are my investments covered by the Financial Services Compensation Scheme?”

“How do I release my investment when I reach my planned retirement age?”

and

“What are all the risks associated with placing my hard earned money in a investment solely linked to this resort?”

Alternatively speak to a professional who can act independently and provide robust analysis based on a detailed analysis of your circumstances, an understanding of your attitude to risk and is fully qualified and regulated.

When it comes to achieving the your financial goals it’s important to make the right decisions.  Building your wealth and achieving financial security may be seen as less exciting than sunkissed-beaches but, in my humble opinion, far far more important.