News > Blog Article > How to Adapt Your Investment Strategy …
At times most people might feel that they will never get access to the investment opportunities that millionaires do. “Money generates more money” as they say and trying to break into that cycle can be very difficult.
This means that looking to your future, building a secure financial position and saving for yours and your children’s futures can come across as an impossible challenge. To cope with that challenge, we, at Bricksave, are giving people the opportunity to get easy to access to institutional level investments with as little as $1,000.
With the emergence of technology, tools and businesses have been developed to help facilitate secure investment opportunities for all - those tools present useful advantages, though only available to the ones that start thinking like a millionaire and are willing to make the most of opportunities that exist today.
How though are today’s millionaires currently investing their finances and building their wealth? How are they truly exploring the opportunities that technology offers? Here are 4 major tips that will help you getting started with becoming an investor of tomorrow:
When people think of millionaires they often imagine expensive yachts and huge extravagance, in reality the opposite is true. Most millionaires are very conservative with their money and often are more interested in reducing risk rather than huge gains. The key is to retain your money and slowly make increases, if something seems too good to be true, then it probably is. If someone offers you a 25% return in dollars over two years then you should be very careful of what the risk level is, you could lose everything all at once.
Millionaires are almost always strategic with the investments they make and according to U.S. Trust, a financial firm in Chicago, 60% of millionaires focus on risk management instead of potential returns.
One of the major ways that millionaires reduce their exposure to risk is by diversifying their investments. That way if one of their investments does not do as well, their entire portfolio won’t be affected. There are many ways to diversify, the main two being across different geographies and across different types of investment product.
According to a study by Spectrum group, millionaires invest no more than 40% of their portfolio in stocks and then diversify the rest across other asset classes, such as real estate, equities, and funds.
Again they tend to favor low-risk options and spread them across international geographies.
Alongside being conservative and diversifying their investments, millionaires invest much of their wealth into real estate. Real Estate is one of the safest and longest term ways of generating wealth.
As Warren Buffet said, the best investors don’t have to be the smartest financial minds but they do know what to do with their money and a U.S. Trust survey discovered that 90% of millionaires they questioned believed that the best approach was buy-and-hold, something that real estate naturally lends itself to.
Investors in real estate can earn an immediate yield when they purchase a property then, after a longer period can receive more capital from an increased value of the investment.
In fact according to economists from the University of California and Deutsche Bank real estate is the best performing asset class of the last 150 years, offering better returns than equities, bonds and treasury bills.
Millionaires tend to try and create multiple income streams to help build their wealth rather than just relying on a salary. This can be done through receiving rental income generated by real estate investment, dividend payment from stocks and bonds or other residual cash flows. Technology has now made it possible for anyone to do this.
As a matter of example: sites such as Fiver and Shutterstock, allow anyone to earn a residual income by simply owning a camera or having a useful skill that could be required by others on a one-off basis.
Technology is also now enabling any individuals inspired to invest for their future and facilitating small investments into traditional investment vehicles through platforms such as Crowdfunding sites.
By investing through platforms such as Bricksave investors can make their money work for them whilst at the same time continuing to work for their monthly salary.
Investing carries risks, including loss of capital and illiquidity. Please read our Risk Warning before investing.
