The Modern Investments

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Since the global crash in 2008, the wealthy have been looking for new places to invest their money. Banks seemed like a safe option but for the super rich, they became a worry zone, this was because most banks would only guarantee the safety of set limits of cash. So if you had 500k sitting in the bank and the bank went bust, you would only get 75k of your money back.

Ok, so most of us aren’t sitting around with half a million dollars in the bank. However, that doesn’t mean we can’t draw some inspiration from the High Net Worth Individuals (HNWI) and invest some of our money into the trends they are setting.

Property is always a good place to stash your cash. Firstly you have a tangible asset, something that might lose money but will, at some point make money. You are far more likely to break even over a few decades than end up with a loss. So this could be seen as a safer bet than your bank. The interest rate on savings at most banks is rubbish. Investing money in property and renting it out could see you making a far better return than you were in your savings account. There are two safe options for investing into a property. One is to find any new houses for sale, especially ones which are being built in areas that aren’t currently fashionable. If you find out information about any potential projects in this neighborhood, you may see that house prices will go up. Eg, if there is a new school or business applying for application. This could push up home prices. The other option is to go old. Look for the worst house on the best street, invest a little time and money into doing it up, then sell it.

Another great alternative investment has been the classic car market. You need to stay ahead of the game here, making smart purchases before the rest of the world cotton on. For making smart purchases before the rest of the world cotton on. For example, the BMW Z3 is a cute little car which is set to be a future classic. You can pick one up for a few thousand dollars, in fact, you can find them for under 1000 dollars, you can then invest a little time and love into restoring it, and in 5 years time, you could have a car worth 15,000 dollars.

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What about investing in wine, companies like Woolfsung have been advising HNWI on the wine investment sector. Here the idea is that you buy up predicted good years and then stash them away in a cellar for ten years. Most vineyards have a pattern when it comes to years so experts can predict which will be good. Of course, there is always the risk that you may get it wrong, or that you haven’t stored it the right way. Then the wine will be ruined, and you lose the investment.

Check out what the elite pack is investing their money in and see if you can replicate it on a smaller level. You never know, your horse might come in.

You’re In The Money! Now, Learn How To Hold On To It

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There will come a time in your life when you start to make serious levels of money, and there’s no set rule when this is going to be. Believe it or not, many people do make their first fortune before their 21st birthday. Others will peak well before thirty while some will take decades before they reach a point where their income is booming. It all depends on what path you take through life. For instance, you might become a solopreneur. If you do this, then the sky really is the limit. There is no telling how popular your business could become or how much wealth you might accumulate. Alternatively, you might soar through school and university with top grades and honors. If this happens, the job market will be different for you compared with other people. Individuals who stay on this path are often headhunted long before they complete their final college exam. They are recruited by one of the top companies in the world and are on a heavy starting salary for their first job.

Even if you don’t find yourself on either of these paths, you could still get rich rather quickly. You’d be surprised how fast you can climb the ladder in a typical job by working hard. Show initiative, get more training, and you’ll slowly push forward past where you once were. When that happens, you will see your income steadily increase until it’s at the point where you literally have more money than you know what to do with. At this stage, you might think your worries are over. But actually, they are just beginning. What should you do when you start to make the big bucks? We’ve got the answer that will guarantee you the best quality of life in the future.

Keep It Safe, Keep It Secret

The most important piece of advice that we can give you is that you shouldn’t advertise your wealth. You should not make extravagant ostentatious purchases. In the past, you might have seen ads online with people advertising their own wealth as a way of enticing people to buy a product. You should know these ads are scams because people who are actually rich don’t promote the idea. This only puts a target on your back, and that’s the last thing you want. You might think that by doing this, you’re making yourself a target for thieves and criminals. But these won’t be the only people who come knocking. There will be other individuals as well as businesses claiming that you need their services. We’ll look into the actual services you need a little further down. But it is important to realize that being well off doesn’t mean you need a full team of staff at your beck and call, no matter what some people may say.

Don’t Leave It Lying Around

You might have accumulated over one hundred thousand in savings. Now, this might seem like quite a lot of money, and it is. But compared to other people it’s nothing, and you might be wondering how they reached a higher level of wealth than you. The answer more often than not is investments. If you want to be rich beyond your wildest dreams you need to look into investing the money you have gained over the years. By doing this, you can grow your income and steadily reach a higher quality of life. There are a few different types of investments that we recommend you consider. Let’s look at a few of the best and the brightest.

The first would be property. If you are investing in property, then there are a few factors that you need to take into consideration. You must think about whether or not you want to take a hands-on approach. If you do, then you should consider buying a property to lease it out on the market. By doing this, you take on the responsibility of a landlord. It will take longer to grow your wealth as a landlord, but it is less risky compared with the other alternative. That would be buying to sell on as quickly as possible. By doing this, you are relying on the market staying healthy long enough for you to make a massive ROI. A plan like this doesn’t always pay off, and you could be left on the market with a property that hasn’t sold for years.

You can also think about investing in the stock market. Again, the stock market can be risky as can any investment. In fact, there’s a thin line between investing and gambling. The best advice we can offer is to make sure you are investing in small, high-risk bonds. These will have a small chance of dramatically rising in value. But they won’t cost a lot of money, so there is a little chance of you losing a lot of money.

Help At Hand

While you don’t need a full team of staff to look after your wealth, we do suggest you get estate planning advice. This service is used by the rich and the wealthy to keep their investments in check. It’s about ensuring that the money continues to flow and that you do not take too many unnecessary risks. Remember what we said about being a target? As your money continues to grow there will be more people who try and take it away from you, including the tax man. With advice from an expert financial planner, you can avoid being taxed to oblivion and invest your money in the right areas.

Aside from this service, we also suggest you get some proper security. The more money you have, the more vulnerable you are. There is no such thing as too much protection for your home or family. At the very least it’s worth installing a quality safe in your home along with CCTV equipment.  You will also want to make sure that your insurance plan covers all of your accumulated wealth.

We hope you find this advice helpful. Right now, it might seem like this type of success is a distant dream. But with a little hard work you can make it happen.

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The Critical Difference Between Making Money And Building Wealth

There’s a big difference between making money and building wealth. Making money is all about generating as high an income as possible by getting a high paying job or running a business. Building wealth, on the other hand, is about creating a stock of value that goes up over time.

Recently, US Trust went and asked more than 600 people with a net worth of over $3 million how they built their wealth. The report, entitled, Insights on Wealth and Worth, generated a significant amount of data which made clear the difference between making money and building wealth.

Here are some of the insights from that report that we can all use.

Build Wealth Slowly

The widespread perception of wealthy people is that they grew up with a silver spoon in their mouths, having rich parents and ample opportunity to do well in the marketplace. But it turns out that that is a bit of a myth. According to data from the study, 58 percent of respondents said that they had humbled middle-class beginnings, and a further 19 percent said that their families were outright poor. Further evidence indicated that only around 10 percent of the wealth of people in the study had actually come from inheritance. The rest of it (more than half) had been earned through income, and around 30 percent of it had come from investments.

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What this showed, therefore, was that most wealthy people got to where they are today through traditional methods, like saving their money and making sensible investment decisions. Many said that they had a lifelong history of saving and investing, some beginning to do so as early as age 14.

Go With Basics Rather Than Newfangled Investments

What was so interesting about the survey was that the majority of individuals didn’t do anything innovative when it came to their investments. 89 percent invested in stocks and bond and in their businesses. Only 11 percent attributed their success to alternative forms of wealth management.

What this indicates is that the simplest methods are still probably the best. Yes, big investment houses might have complicated algorithms that make millions of well-diversified transactions every second on the stock exchange, but most people built their wealth through simple mechanisms, like a cash advance online to kickstart their businesses. It’s about having a great business idea or a well diversified portfolio – not looking for some get rich quick scheme using an unreliable investment product.

Ride The Market, Don’t Guess

Most people who get into investing think that they have to regularly predict where the market will head next. Sell high and buy low, right? Well, although that might sound like a great idea, it’s not usually how it works in practice, and it certainly isn’t how the majority of wealthy people in the study made their fortunes. According to the report, only 14 percent said that they made the bulk of their money by timing their investments. The rest said that it was just a case of “buy, hold and wait” for the stock price to go up.