Being a millionaire (or billionaire) is a common fixation (and even obsession) for many people. It's only natural to strive for money as it can ultimately lead to a better, more secure and more fulfilling life with new opportunities.
However, this millionaire milestone is paved with obstacles, and there are plenty of different paths to take. Many millionaires have started businesses, used property or worked hard in other ways.
Here are a few brilliant investment strategies that millionaires have used to boost their income and secure their portfolios for the long-term.
They keep it simple
People might assume that millionaires focus heavily on complex investment strategies involving off-shore bank accounts, tax-sheltered plans and an array of incomprehensible investment activities that most of us aren't even aware of. While this may be true in some instances, many millionaires make it a habit to keep their activities with regards to investments simple and straightforward.
Invest regularly regardless of what the market is doing and diversify as much as you can, utilising bonds, stocks, small-mid-large caps and ETF's to manage your risks and don't try to time anything. Millionaires often don't want to spend too much time and effort on their investments, so they keep things simple and easy to manage while raking in decent returns.
They keep costs low
As your portfolio begins to grow in strength and size, costs and fees can also rise. Imagine managing a seven-figure portfolio. Millionaires can easily be overwhelmed by investment fees.
Find small differences in costs. For instance: the difference between 0.1% per year in expenses on the lowest cost mutual funds versus 1% for a standard actively managed mutual fund is only 0.90%. This number might seem small, but consider 0.90% of $1,000,000!
As you can imagine, that's a lot of money. A big part of managing healthy investments is keeping tabs on the costs and fees and maintaining a minimum average.
They start early
Many millionaires didn't build their wealth and experience overnight. They understand that patience, time and consistency are all important traits to have when it comes to investing for success. This is why they start early and often take risks while they are still young. The early years can typically be the most critical with regards to investing, and a majority of millionaires have managed to increase their investment contributions over time, more so than their discretionary spending.
They include tax-free wealth opportunities
Millionaires also often take advantage of easy opportunities for building wealth. These can be employer-sponsored retirement plans, Health Savings Accounts and Roth IRAs (to name a few). These simple initiatives may often be overlooked by many people, but many of these have significant benefits such as tax planning opportunities and a no-limit eligibility condition for contributions.
Another trick that millionaires often apply, is that they pay for medical expenses out of pocket while keeping track of the receipts, and take lump-sum reimbursements for medical expenses later on. This is a triple tax benefit and unique addition to an investment portfolio.
They take calculated risks - whenever possible
Millionaires know that risks are inevitable in life and business, and come as part and parcel of the growth process. However, they take risks when the odds are in their favour, and a large part of that tactic is having the wealth available to put at risk in the first place.
They don't bite off more than they can chew, but they don't sit on the sidelines either. Many millionaires don't limit themselves to stocks and bonds and instead use capital and invest in businesses or private equity deals that require high initial investments. As long as the numbers add up and the risks don't overburden their budgets, they take the leap.
There’s more than one way to become a millionaire. Following blueprints left behind by the ones who have made it can help. Consider these investment strategies and apply them to your ongoing journey so that you might also be able to prosper down the line. If you’d like to know how I can help you along on your journey towards growing your millions, get in touch!
For more information, please contact me. I will be happy to help with whatever questions you have. www.rgwealthsolutions.com +6011-51565649
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