The goal of wealth management is to invest your money wisely so that it provides the highest possible returns. Viable investments come in many forms depending on your age, risk adversity, and retirement lifestyle expectations. Different investments have different risk levels and returns; the economic climate will also be a factor in your wealth management. In pursuing the goal of increasing wealth, it is important to know where to put your money and when to sell. Such decisions can be guided with the help of a wealth management professional whose daily business is staying informed on the markets, economy, and investment opportunities.
Personal Wealth Management: 3 Top Ways to Increase your Wealth
Wealth management mistakes can be costly. Putting money in the wrong venture or pulling it out just after it crashes can result in great losses. While working with a professional wealth management adviser is not a guarantee; it is their job to follow movements in the economy and stock markets and to have knowledge about specific stocks and other investments. Professional personal wealth management can make all the difference. You will be guided through decisions concerning asset management, education and retirement management, exit planning for those selling businesses, provided written investment policy statements and when appropriate, they will suggest alternative investments to diversify your portfolio.
Tip 1: Invest early
The earlier you invest, the more time your money has to multiply. A person who starts investing for retirement at the age of 20 will actually need to invest considerably less money than a person who starts at the age of 30. Why? The power of compound interest. Compound interest is the interest earned on your initial principal plus the interest earned on the interest; essentially you earn interest on interest. The rate that compound interest is earned depends on the frequency of the compounding. Use a compound interest calculator to see what you will need to invest over what period to reach your wealth management goal!
Tip 2: Automatically withdraw savings
It is advisable to set aside as much of your income as you can comfortably afford. One of the best way to ensure that the money is set aside is to setup an automatic withdrawal from your paycheck. If it’s withdrawn before you access your check then you are less likely to miss it or to accidentally spend the money.
Tip 3: Diversify your portfolio Investing your money in a variety of avenues can help to shield you from steep losses if the economy takes a dip or a particular investment turns south. A typical personal wealth management portfolio may include investments in stocks, bonds, mutual funds, and alternative investments such as Real Estate Investment Trusts (REITS). Your wealth management professional will help you decide what combination of these investments suit your needs as well as doing the due diligence in researching quality stocks and other investments.
Contact the wealth management professionals at MultiGen Wealth Services today to start building your personal wealth management portfolio.
“The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Investing involves risk including loss of principal.”
“No strategy assures success or protects against loss.”
“There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.”