Investing can be simple if you focus on purchasing low-cost mutual or index funds from companies that are well-known and pass the saving onto clients rather than owners. If you don’t want to choose and work with individual bonds and stocks, there is hope. If you couldn’t own private businesses that allowed you a constant stream of money to redeploy or pick individual stock options, what could you do? Stocks are an excellent way to grow your net worth and reduce risk and EuropeFX can help, but they’re not the only option.
Many people find themselves in a similar situation. You don’t want to read annual reports, study dividend payouts or interest ratios, so how can you build your wealth using bonds, real estate, or stocks without worrying about your portfolio a few times each year?
It Can Be Easy to Build a Portfolio
There are just a few rules to investing, and these include:
- Spending less than you earn
- Avoiding debt
- Investing as much as you can without changing your current lifestyle
- Keeping liquidity/cash to pay bills for at least six months if you lose your job
- Avoiding loss and lower risk
While that all seems doable, most people get worried because wealth-management companies make it seem much harder (so they can charge high fees for their services).
Basic Asset Allocation Models
While trying not to deal with stocks and other traditional options, the best thing to do is choose a mutual company that is owned by the shareholders and utilizes rock-bottom expense features. That way, most of the money stays in your pocket and doesn’t go to all the fees. If you’re younger and don’t need the money for a while, you may consider putting a small amount in cash/cash equivalents and silver/gold. A little more can go into high-grade bonds that mature in about eight years, while most of the money goes into dividend-paying blue-chip stock options.
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