Maybe your dream is to retire early and live on an island somewhere, or to pay for your kids’ college. Realistically speaking, with life expectancy as high as it is and colleges as expensive as they are, you will probably need more money than you might think to fulfill either, or any, of your dreams. In order to build your wealth, you will want to invest your money. Investing allows you to put your money in vehicles that have the potential to earn strong rates of return. In other words, you put your money to work for you.
Want to clear up your doubts? The stock market, precious metals, real estate, a small business or a combination of assets, the objective is the same: to make investments that generate additional cash. Investing is essential in getting where you want to go in life. Experts recommend that people invest 10% of their assets in venture capital. So yes, you should invest.
What to invest in?
A nice option to get you started can be the stock market. Investing in the stock market can help you beat inflation, and contrary to what you may have heard, you don´t need a lot of money to invest in it. Investing small amounts each month could be a good way to start. Yet another option are online brokerage companies, which make it easy with low fees and user-friendly platforms. You will have to keep in mind that you have the potential of reaping higher benefits in the long run. The odds of the stock market rising significantly over the long run are high. Thus, patience and a diversified portfolio are key.
Another investment that always comes up as a great way to generate additional cash is Real Estate. This can be a bit more complex because you could have to deal with physical property, but never fear, there are plenty of ways get around that. One option to consider is investing in real estate notes, but you should be aware that this implies a high level of risk, so be sure you know exactly who to buy them from.
A third option for investing is natural resources and commodities. While almost every asset has soared for years, natural resources and commodities have been battered. As a rule of thumb, prices don´t go up forever and they don´t fall forever either. So, investing in markets such as agriculture, oil or precious metals could be the answer, as they could be a great investment opportunity over the next 3-5 years.
Regarding precious metals, we can see that gold has historically outperformed other assets in times of global crisis and market crashes and is also immune to counterparty risks. That is why gold is a long-term investment of wealth. Furthermore, it entered into a new bull market in early 2016, and it seems to only be getting started. As things go, now is a suitable time to invest in gold, grow your savings and, eventually, achieve your big dream.