Investing Is For Everyone, Here's What You Need To Know

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Social security isn’t going to run out, but its numbers fluctuate and there’s no telling how much it will pay for retirement. It only brings in about 75 percent of what it’s intended to pay out each year, which could leave you with less than you’re hoping for. 

Investing Is For Everyone, Here's What You Need To Know

That’s why you need a well-rounded and diversified investment portfolio regardless if you’re low-income or high. The following lists the various types of investment opportunities available to you, and the importance of using an investment management company to help you ensure long-term success.

Stocks, Bonds, and Mutual Funds

These two things are not similar: stocks and bonds. Stocks allow you to buy your way into company ownership. Bonds allow you to lend your money out and receive interest and eventual repayment. Mutual funds combine both stocks and bonds and they’re managed by third-parties. It’s important to choose an investment management company that understands risk. For example, Shailesh Dash, named one of Forbes’ “Top Indian Leaders” in 2015, uses “fundamental analysis to identify value.”

Analysis is everything, and it’s going to ensure that outcomes are fully researched. This ensures a successful long-term return with fewer risks. Not all management companies are created equal, and not all are so homed in on risk and reward. Even if you’re only investing in your 401k, it’s important to research your management company to ensure they’re doing all they can to protect and grow your money. 

Real Estate 

Home ownership is important, but mortgage debt can hold you back in life. The secret to successful real estate investing is to not live outside your means, and don’t mortgage yourself to death. If you’re considering purchasing your first home, you may want to own a duplex. Live in one side and rent out the other; or, continue to rent and rent out both properties.

Here are a few more ways to invest in real estate that is growing to be a profitable market:

 Senior and disability-friendly apartments/homes.

 Off-campus homes for students.

 Off-base military housing.

 Low-income and halfway houses.

On its LinkedIn page, Shailesh Dash recommends that you utilize a qualified management company to evaluate and optimize your real estate portfolio. This is good advice, again because it minimizes risk and maximizes reward. You’ll receive a “full spectrum of debt management… including acquisition finance, debt restructuring, strategic debt financing, and coordination of bank syndicates.” As well as your assets will be evaluated, your transactions structured, and more.

Alternative Investments

Alternative investments are any investments that don’t fall into the traditional category of stocks, bonds, and cash. Real estate is considered an alternative investment, but it deserved its own space on this page because it’s one of the best ways for lower income individuals to build gradual wealth. Other examples of alternative investments include wine, art, precious metals, hedge funds, private equity, and venture capital. 

As far as retirement goes, certain collections are always a great investment. For example, silver and gold are two things you can always buy low and sell high. The secret is to know when to buy and sell. Don’t just buy silver now because you have some extra money; instead, place that money into a savings account and wait for silver to go down. Luckily, there are lots of places online that monitor the prices of silver and gold and can help you make a good decision of when and where to buy.

As far as investing goes, it’s never too late to start. But, the earlier you start the better. No matter where you are in life (in college, in debt post college, or middle-aged), investing in your future can only help you. Talk to a money manager now, and you can start putting away what you need to have a carefree retirement. 

Looking forward to your comments.

*by andreascy*