What are your options when the stock market takes a dive and the interest rate on all of the “safe” investments is next-to-nothing? You don’t want to panic, but leaving all of your cash in equities and “riding out” the coming storm is not the smartest thing to do.
If the market drops by 30 percent, it will have to go up by nearly 50 percent in order for you to recover your loss. The people who rode the market all the way down to its lowest point in March of 2009 and did not sell eventually recovered their losses and actually made some money. However, it took about five years to get back in the black. The most astute investors parked their money on the sidelines and watched as the market slipped into bear territory. They did very well by buying stocks near the lows and riding the recovery to new heights.
What Is the Secret That All Millionaires Know?
Millionaires understand how important it is to have a sound financial education. They take calculated risks that can pay off in big profits. They do research, analyze data, and stay away from hasty investment decisions. Millionaires have the curiosity and desire to always want to learn more.
At Paradigm Life, financial education is the foundation of our business. In order to grow your wealth, you need to understand wealth. Get to know the options available to you for growing your wealth with Perpetual Wealth 101, a free online course that teaches the same principles used by millionaires like the Rockefellers and successful companies like McDonalds and Disney.
Luck may play a part in becoming a millionaire, but almost all millionaires make their own luck by investing in themselves and gaining the knowledge and skills to make the smartest financial decisions. Millionaires invest time to keep abreast of the long-term and latest trends that can influence the suitability of an investment.
Millionaires are apt to look for alternative investments when traditional investments are not a good option. When stocks are not doing well and you can’t earn a decent return on certificates of deposit or bonds, you can still generate profits through alternative investments. Following is a short list of some of the many alternative investments that you may want to consider.
Real estate investments build equity over time and property values generally appreciate. You may also be able to generate a stream of income by renting or leasing the property that you own. Great wealth has been built by investing in real estate. According to the 2019 Forbes list of billionaires, there are 2,153 billionaires in the world. Included in that total are 223 individuals who made their billions in real estate.
Collecting can be both enjoyable and profitable. To turn collecting from being just a hobby into a serious financial investment, you need to be knowledgeable about the fine art, fine wine, or rare coins that you are collecting. Buyers can be hard to find and value can go up or down with changing market conditions.
Commodities include all types of homogenous goods that are bought and sold in volume. Most commodities like agricultural products, oil, and building materials are traded on the futures market. Precious metals , such as gold or silver, are often purchased and held by investors in the form of bars or bullion coins.
If you want to become a millionaire, invest in yourself. Take a look at this article about Banking on Long Term Success. Learn how to read a financial statement and learn how to analyze the value of a business. Understand what you are investing in before you invest. Be willing to assume some risk for a chance to make a great return on your investment. One of the first steps you can take to invest in yourself is to schedule a complimentary consultation with a Wealth Strategist and create a personal strategy that aligns with your financial goals.