The United States is a country brimming with opportunities to build wealth, but the problem is that too many people have absolutely no clue how to take advantage of them. You would think for the country that is the world’s economic leader, financial literacy would be more a part of our education, but you’re left to get wise about money on your own for the most part.
One thing for certain is that you’re never too young to start planning your financial future. By wisely saving and investing, you could someday live like those people you admire who live their lives in leisure. Continue reading to get some financial and investing advice to help you live well now and in the future.
Make long-term investments in companies with proven track records of success.
You may hear all the time about people who made the right investments, and one day, they woke up wealthy. If you think that’s going to be you, then you need to clear your mind of all such thoughts. Those stories are rarer than lightning striking in the same place twice during the same storm.
Bitcoin and Microsoft are examples of stocks that seemingly became worth billions overnight. But, Microsoft and Bitcoin were only overnight sensations to the people who didn’t invest in their stocks ten years before when they were still in their infancy. Those companies took so long to blow that many of their investors had completely forgotten the investments they made into them.
Now that you understand that there’s no such thing as a get-rich-quick investment, you should focus on building a long-term investment strategy. Buying stock from companies that have long track records of being successful industry leaders almost guarantees you’ll see a profit over the lifetime of your investment. Investing wisely also means putting your money behind a product, service, or asset that people will always need.
For instance, water companies make safe investments but don’t go with just any old bottled water company. Invest in a direct-delivery water company like Labrador Source who’s been providing water products and services for the top bottled water producers in Canada for decades. Wherever success meets longevity, you’ve more than likely found a safe investment.
It would be best if you had a diverse investment strategy.
Even if you have an impressive portfolio of stocks, you should seek investment opportunities outside of the stock market. Stocks may be the most popular way to invest, but they’re also volatile and prone to adolescent mood swings.
If you’re looking for ways to add some variety to your portfolio, you should consider adding some alternate assets. Alternative investments are non-financial, physical assets such as classic cars, investment properties, and fine art. One of the main benefits of alternative investments is that there’s a low correlation between them and the stock market. That means the value of alternative assets is largely unrelated to what the markets are doing.
Like NASDAQ and the New York Stock Exchange are top platforms for trading stocks, Yieldstreet is the go-to for buying and moving alternative investments. Not only is it a platform for investing, but it’s also a great way to learn more about the ins and outs of investing in alternative assets.
It’s understandable if you’re wary of investing thousands of dollars on a platform you’ve never heard of before. However, if you want to assuage your concerns and learn more about the Yieldstreet alternative investing platform, then check out this Yieldstreet review from “Business Insider.”
Your life insurance policy is a financial tool.
Your life insurance is much more than a death benefit. For many families, it’s their way out of generational poverty. For some, it’s access to funds for investments, significant purchases, and costly emergencies.
If you decide to cash in your insurance policy, you need to be aware that there are tax implications for insurance settlements. If your beneficiaries receive a payout on your policy as a death benefit, then the money is tax-free. However, if you cash in your policy early for a settlement, then the IRS will require its share.
The most important thing you need to know about finances and investing is that you’ll never know it all. There will always be new trends in the market and new methods for saving. If you want to achieve financial success, you need to become a student of how markets and money work.