Published by Selby Webb
Co-founder, Editor and Head of Marketing of SuccessField
2 years ago
Investment in real estate
Acquiring real estate is a good way to secure your future stability. You don’t just avoid sleeping on the side line of the road, but you can start putting savings aside. Your house is definitely worth something, if not a lot. So in the worst case, you can sell it for a certain amount or rent it out and accumulate passive income.
Investment in precious metals or other physical objects
Make sure 10% – 15% of your wealth is generated in a physical form. Precious metals are prestigious. Always look at this type of investment as a long term investment. Metals bring no return, except if they are sold for a higher price than once bought for. The benefits of physical investments leads back to your mindset. However, remember that the chance of your gold bar’s dropping to $0 is lower than your stocks becoming worthless.
Retirement funds are based on safety. Signing contracts like this can promise amounts over $100’000. The only problem is the monthly payment and that it blocks your other investment opportunities. There’s an option to freeze the account during bad financial situations, which of course will manipulate the amount of money which was once agreed on, but remember that retirement funds can be deducted from your taxes. Before considering this possibility, take a good look at your salary and expenses.
Preparation for old age should begin not later than one’s teens. A life which is empty of purpose until 65 will not suddenly become filled on retirement. –Dwight L. Moody
Investment in “risk”
Risky decisions are what we laugh about when everything went good. However, no one laughs when it goes backwards. Penny stocks are the typical myth many fall for. Why would you invest 50% of your savings in a company you don’t even know? I simply don’t get why one unnecessarily gambles with their savings.
Putting all eggs in one basket
Placing all of your money in one bank account is a tremendous risk. The reason is very simple. Think about what happened when the great Swiss Bank UBS flushed a lot of people’s money down the toilet in 2008. Putting all your eggs in one basket is one of the most common mistakes. This includes investments based on only one element. If all your wealth was in form of euros, you would have been one of the biggest losers now.
Humbling your expectations
I’ve met many people who look at their life the same way as believers do. They compare retirement to heaven but in reality, retirement is nothing else than preparing yourself for a life on the same standard without having to work. The only normal situation where one’s life style reaches the luxury level, is when you travel. Convert an estimated fortune of $400’000 into South African Rands. The life you could live down there surely won’t be on the same standard as in the USA. Don’t work for 40 years while living average and expect your retirement to be on the level of a celebrity in the same country!