The wealthiest people in the world didn’t start at the top, and most of them did not make their money overnight. Investments are a key aspect of an affluent person’s financial strategy, largely because they give you the opportunity to multiply your wealth over time without physically working for it.
Everyone has a different investment strategy, but the wealthiest people in the world tend to operate in similar ways when it comes to investing. No types of investments are guaranteed to result in millions, but consider adding these successful investments into your portfolio.
5 Top Investments Wealthy People Should Make
Real estate continues to be a valuable option for investment, especially in some of the hottest markets across the nation. People will always need a place to live and work, so investing in physical property is a viable choice with inherent value, especially if you’re investing in a rental property.
Exclusive real estate, or real estate that doesn’t come to market very often and will appreciate in value, is of particular interest to wealthy investors. The initial cost of this type of property is something the affluent can often manage, and the long-term benefits can be astounding.
Investment in Real Estate Investment Trusts (REITs) is also an option and helps you invest without the hassle of actually managing the property.
Tangible assets
Many people forget that investments intangible assets can be quite lucrative, especially in the long term. Intangible assets certainly have their place in a diversified portfolio, but art, collectibles, and other physical items can serve as an excellent way to preserve wealth and get high returns in future years.
Seek rare, high-value items that are anticipated to grow in value over time. Additionally, consider the ways you can leverage your collections to create even more income for yourself.
Stock market
Of course, no investment portfolio would be complete without stocks and bonds. The stock market isn’t always favorable, but investing for the long term can help you ride stock market waves and feel secure in your options.
Buying and selling stocks is a good way to control your risk preferences and seek new opportunities in an ever-changing marketplace while maintaining liquidity.
Gold and other precious metals
Gold has held a place in the affluent’s investment portfolio for a long, long time, and it continues to be intriguing to investors because it maintains its value. Other precious metals are becoming increasingly popular, as well, because of their growing list of uses invaluable manufacturing sectors around the world.
Most gold and metal investors tend to store their metal reserves overseas to protect it from seizure.
Create a strong investment strategy
When building your investment portfolio, there are a few things to keep in mind, no matter what investments you decide to make. First, aim to diversify your portfolio as much as possible to minimize risk and maximize returns.
Next, plan your investments with long-term goals. “Get rich quick” schemes don’t often work, and wealthy investors know this. Major wealth is often accumulated by investing in assets held for the long term, with well-planned goals that play into a larger strategy.
Finally, work with an experienced financial planner in Los Angeles to help plan your investments and discover how each type plays into your overall financial plan. Making investment decisions is much easier with the help of a skilled advisor like Samuel Rad, whose goal is to help you plan and grow your wealth. Our advisors can not only help you make sense of your investments but can also help you translate those investments into your overall wealth strategy.