Retirement planning is a big project. For some, this starts in their teen years or their twenties. Saving is a race against time, and the clock, unlike the norm, is your friend in this adventure. As a young investor, your money has the opportunity to compound and double an estimate of six or seven times before you reach retirement age. At this point, you have the option to leave the workforce or continue drawing a paycheck if the work you do is something you love. Early saving creates the freedom to choose your path forward into retirement years. That’s why it’s so troubling that 70% of Americans have amassed less than a grand in savings.
Saving is the backbone of retirement planning. You can hope and dream all you want, but without a sound strategy for funding that dream it will remain boxed away in the recesses of your mind while you continue to toil for a living. However, creating a savings strategy and capitalizing on these working years is actually easier than you might think. It starts today and will carry you through your working years and beyond if you let it
Begin with the basics.
Investing requires a strong foundation in the basics of wealth growth. Real estate, stocks, commodities like precious metals, and even cryptocurrencies all revolve around strong marketplace fundamentals that can only be built up through trial and error over time. You can shorten this learning curve significantly with an intense focus on research and learning resources designed to help traders and investors succeed in the market. The most famous investors and entrepreneurs in the world like Warren Buffett, Mark Cuban, and Elon Musk all share this passion for learning and building up a reservoir of knowledge in the sectors they traverse.
Learning all that you can about a commodity or marketplace can give you the edge up when it comes to jumping on a fast mover or a new trend that will rapidly create growth in your portfolio. Likewise, a consistent commitment to learning and knowledge acquisition will help you transition out of bad investments before they sour. The stock market — and every market — is all about timing and judgment calls. The more you know, the better your judgment will be when it comes to making trades.
The stock market is a fantastic place to begin your investing career. Whether you are an 18-year-old just starting your first job at the local supermarket or a fifty-something-year-old looking at your retirement options just over the horizon, the stock market is a great place to park your money in order to increase net worth and financial security over time. In fact, there is an entire cottage industry surrounding stock market knowledge.
YouTube can get you started in the fundamentals of trade spotting, but looking to niche communities like Wealth Rocket or Yieldstreet that will grant you access to unlocking the true value of the stock market and beyond (see wealthrocket.com for more on specific investment and savings advice).
Branch out into alternative investment territory to boost returns.
Traders who have built up a sizeable collateral backing in stock, bond, and commodities trading often seek their next move in real estate or collectibles. Alternative investing used to be seen as an avenue strictly for the high net worth investors, but more and more regular Joes are getting into these high-value commodity trades, and ballooning their savings portfolios as a result. Reading a Yieldstreet review can tell you why alternative investment opportunities often see returns on a far grander scale than their competitors in stocks or gold trading.
Many investors find a move into the real estate market to be their most lucrative sector — so, it’s no wonder why millionaires have been growing their wealth through real estate purchases for decades. The unique angle of real estate investing is that your current home or high-value belongings can act as collateral in the purchase of a new home designed for maximizing income. In fact, one thing you can do to energize returns on your investment is to sell your own home and use the profit to move into a new space that suits your needs better.
As we age, our desires for creature comforts change. Carpeting and a large floorplan matter less, and a luxurious interior with a splendid kitchen might be all you need to feel at home. Downsizing can help free up additional capital so that you can leverage equity and free capital into buying a new home for you to live in and a second property to flip. As well, hiring a moving company in Fort Lauderdale FL, or wherever you are based, can get you packed and transitioned into your new space in the blink of an eye.
Flipping projects net investors serious cash returns, and a fixer-upper can be turned around in record time if you are able to find the right property. Many of these homes are sold at steep discounts by the bank in order to recover a portion of their mortgage investment in another borrower. Buying a foreclosure home can give you access to a great property that might need a roof repair or new windows and then can be sold for an incredible markup a month later.
Another great option in the real estate space is in rental properties. Many older investors love this option for its security. Rental properties are typically easy to manage and pay back a monthly check from tenants. Many investors that capitalize on the market in this way also like to buy a property with a low and long mortgage repayment obligation.
By minimizing monthly payments, homeowners can funnel a portion of the rental income into mortgage payments in order to take this debt off of your traditional cash flow register. Self-containing the mortgage helps keep costs low, and over time, the natural inflation of rental pricing across the country will create a higher rate of return without any additional financial burden on your part.
Rebalancing is critical to continued success.
Rebalancing is crucial to finding success throughout the years. The most successful investors rebalance their portfolios regularly, but a quarterly reevaluation is typically the standard. This way, you can take advantage of the long movers while also identifying and cashing in on fast movers a few times a year — at least. Occasionally, you will want to dump a stock or pump more capital into a different commodity vehicle because the research suggests a shift in the market’s momentum.
Staying up to date with your research will help you identify great opportunities for future growth, and a dedication to consistently reevaluating all of your positions will ensure that you don’t get too attached to any single segment of your overall portfolio. Holding on to losers is something that we all do. The longer you hold a commodity the more you convince yourself that it will turn around if you just give it a bit more time. But cutting losses is part of the process.
Sometimes an investment decision won’t pan out. After each quarterly review, you must sell those at the top of their performance as well as others that have flopped. But most importantly, performing an “autopsy” on your results can help you make better decisions in the quarters to come, turning more and more of your decisions into winners over time.
Capitalizing on alternative investment opportunities follows the same game plan and logic as the more traditional buys. Build a grand strategy to keep your investments moving upwards and you will grow incredible wealth over the long term.
To read more on topics like this, check out the Success category