Investments to Consider for Wealth Management

FEATURED POST

Knowing what investments you should be making at every stage of wealth isn’t something that a lot of people talk about.

Yes, you have the feeling that you should be making some investments, but you’re not exactly sure what they should be. 

That’s where this post comes into the picture.

We take a look at where you should be putting your money when you have around half a million dollars, and how you can use this stage in your financial life as a springboard to earn even more. 

Index Funds And Dividend Stocks

You’ll want to put around 30 to 50% of your assets into index funds and dividend stocks. These are fantastic at making you money over the long haul, giving you reasonable expenses and returns over timeframes in decades. 

Historically, before WWII, this type of investment was more volatile.

However, modern banking systems and fiat currencies mean that most valuations now rise across the board in most years, meaning that the likelihood of returns is strong, even if you’re worried about the current gains in stocks. 

Just remember that the risk of these investments can be quite significant.

Unfortunately, equity valuations can go to zero, which is quite different from a lot of other asset classes (even top businesses can go out of business in a crisis). 

Bonds And Fixed Income

Another 20% to 40% of your portfolio should be in things like bonds and fixed income assets. These provide you with a consistent income through time, allowing you to save substantially and amass quite a lot of wealth in a relatively short space of time. 

The safest assets in this class are those issued by the government. Uncle Sam is often willing to offer T-bills and other notes at guaranteed rates, meaning you’ll always get your money back. 

Bond ETFs are also available.

These come with slightly higher risks but better returns, meaning that they can provide you with a nice backstop if your forays into the stock market don’t work out the way you plan. 

Alternative Investments

You always want to keep part of your portfolio allocated to alternative investments. This makes sense because these can go through cycles, moving up and down with different economic conditions. 

For example, gold and silver are classic alternative investments, and they’ve both done extremely well recently, outperforming most indices elsewhere. 

Buying pontoon boat inventory is another idea, and something worth considering.

Boats and other collectibles can rise in value when the economic circumstances are right. 

Generally, you’ll want to allocate between 5% and 15% of your assets to alternative investments.

That might not sound like much, but it can make a big difference. 

Real Estate

Finally, you might want to look into investing in real estate.

Most people put the majority of their wealth into this, but you’ll want to keep it a little lower if you’re being smart, perhaps between 10 and 20% of your total wealth.

Real estate doesn’t offer quite the same returns as stocks and shares.

NOTE: The references in this article are provided for informational purposes only. Investing activities involve significant risks, and individuals should only participate after conducting their own thorough research and evaluating their personal risk tolerance. Always seek professional financial or legal advice before making related decisions.