Investment Strategies To Grow Your Assets

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Regardless of how much money one has, it seems that everyone wants even greater wealth. One way to accomplish this is through the growth of assets.

The real challenge to building wealth has little to do with understanding principles, but rather lies with a long-term and consistent application of those principles. This is the reason so few people are able to build significant wealth. Knowledge that is not applied consistently has no practical value.

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Investment Strategies To Grow Your Assets

  1. 1. "Let individuals create real wealth, empower them, create something that they can leave for their children." - John Sununu Strategies to Grow Your Assets Investment
  2. 2. 3 Principles For Wise Investment • Three key things determine the success of any asset growth strategy: How much money you invest The growth rate on that money Length of time of the investment
  3. 3. Questions for you: • Are you investing all you can? • Can you deal with the risk that comes with higher returns? • Are you willing to educate yourself to the necessary level to earn higher returns?
  4. 4. Two-Part Mantra For Growing Assets Formulate the three principles into rules that support your wealth goals. Consistently abide by those rules.
  5. 5. “Why not invest your assets in the companies you really like? As Mae West said, “Too much of a good thing can be wonderful.”” - Warren Buffett
  6. 6. GROWING ASSETS: 9 Steps for Success
  7. 7. Step #1: Have a Goal And a Plan • Have a written plan. Without goals and a plan to support them, success will be very challenging to achieve. • Studies have shown that goal setting and planning are incredibly effective and go a long way towards guaranteeing positive results. • The best plan for you will vary based on your current assets and income, as well as your current stage of life.
  8. 8. Step #2: Live Within Your Means • The freedom of being wealthy needs to be more important to you than having the appearance of wealth. • Every dollar that passes through our hands really only has one of two outcomes: it is either used to increase wealth or it is not. • Following a budget helps you allocate more of your dollars toward building your assets.
  9. 9. Step #2: Points To Note The most important component of building wealth is the rate at which you accumulate assets. •Eventually, a tipping point is reached where the returns are much larger than any further contributions will be. Try to reach that tipping point as quickly as possible. Focus on building those assets. •Earn as much as you can, spend as little as you can, and invest the difference.
  10. 10. Step #3: Increase Your Financial Knowledge • The best way to achieve growth of assets is to educate yourself. • Learn how to maximally profit in any market condition. This takes effort and time, but it’s well worth it. • Increasing financial knowledge is a critical step to your financial future. There is no shortage of books, websites, courses, and newsletters to provide the necessary education.
  11. 11. Step #4: Start Early • At a 12% growth rate: • Procrastination has a hugely detrimental effect when it comes to financial matters! In 6 years: Your money doubles Wait 6 years: Level of wealth cuts in half Wait 12 years: Level of wealth reduced by 75%
  12. 12. Step #4: Start Early (Cont’d.) • The longer you wait, the more difficult the process becomes. • See how much each age group has to save to achieve significant assets:
  13. 13. Step #4: Start Early (Cont’d.) •Need to save 10%Start in your 20s •Need to save 25%Start in your 30s •Need to save 35%Start in your 40s
  14. 14. “Wealth is well known to be a great comforter.” -Plato
  15. 15. Step #5: Save and Invest on Auto-Pilot • Most things are easier when done automatically. • Set up automatic paycheck deductions into savings and investment accounts. • Invest in vehicles that automatically grow your assets. "Owning a home is a keystone of wealth...both financial affluence and emotional security." - Suze Orman
  16. 16. Step #5: Examples of The Auto-Pilot Principle Automatic Savings Deduct part of your pay before you touch it. You can’t spend the portion you don’t have. Own a Home Owning a home is like forced savings. Each payment reduces debt and builds assets. Own other Real Estate Becoming a landlord can be lucrative. Great tool for building asset base. Retirement Investment Plans Save in 401(K) for retirement. Benefit from tax breaks.
  17. 17. Step #6: Learn From Your Results • You have the power to create your financial future: 1. Take action. 2. Evaluate your results. 3. Then improve your actions until your goal is achieved. • Asset accumulation must become a set of habits that you create for yourself.
  18. 18. Step #7: Over-Commit Resources • The military has a principal called 'overwhelming force'. • In a nutshell, this is the idea of committing resources well beyond what is needed. • For example, if a particular mission needed a minimum of 1000 troops, four tanks, and three planes to be successful, the military might send 1500 troops, six tanks, and five planes.
  19. 19. Step #7: Over-Commit Resources Avoid sticking to minimums: Minimums leave no room for setbacks or mistakes. Follow the same example to grow assets: Determine how much is needed to reach a goal. Save more for a longer period of time. If the original assessment was correct: The success of the mission is guaranteed by the over committing of resources.
  20. 20. Step #8: Keep Your Assets Out of Reach • It is much easier to save money in the long term if it is kept in a place that is difficult to reach. • For example, with a brokerage account, most of us would not sell stock for a little weekend fun. Similarly, money that is saved in a retirement account incurs financial penalties associated with accessing the money.
  21. 21. Step #8: Keep Your Assets Out of Reach • The best policy is to never borrow from your long-term savings to fund your current lifestyle. • The more you're willing to sacrifice now, the more you're likely to have in the future.
  22. 22. Step #9: Manage Your Risk • It’s important to guard your assets while still providing the opportunity for significant growth. • Always consider the downside to any financial moves or investments.
  23. 23. Step #9: Manage Your Risk • Insurance prevents you from depleting your assets in a crisis: health insurance, automobile insurance, long-term care insurance, and more can protect your assets.
  24. 24. GROWING ASSETS: Investing in the Stock Market
  25. 25. Getting Started With the Stock Market • The stock market typically pays long- term returns of 11%. It’s a venue that you’ll likely want to use in growing your assets. • The most common stock market investments :
  26. 26. Getting Started With the Stock Market • Easy, automatic investing • Spreads your riskMutual Funds • Choose your own companies • Buy and sell when you wantStocks
  27. 27. How to Analyze a Stock Understand the company and what they do Understand the basic financials Potential for growth? Income Further research
  28. 28. Stock Analysis: Understand the company •If you understand what the company does, you'll be able to make better decisions as market situations change. Follow Warren Buffet’s lead in choosing companies that you understand. •Smaller companies often have more opportunities for growth. •Large companies tend to grow slower but can be more stable. How large is the company?
  29. 29. Stock Analysis: Understand the basic financials • These numbers can help you determine if a stock is priced fairly. They also give some indication regarding the health of the company.
  30. 30. Stock Analysis: Understand the basic financials Earnings per share (EPS) tells you how much profit the company is making per share of outstanding stock. Price-to-earnings ratio (P/E Ratio) is the stock price divided by a company's earnings. A high P/E ratio suggests that either investors are expecting share prices to rise or that the stock is overpriced.
  31. 31. Stock Analysis: What is the potential for growth? • Is the industry stagnant or does it show a lot of potential for growth in the future? • How has that field changed over the last few years? • What is the expectation for the future?
  32. 32. Stock Analysis: Income • Does the company pay any dividends? If so, how much does it pay? • Many times, the more income an investment provides, the less likely it is to experience significant growth in the future. • This is because the profits are being spent on the investors instead of expanding the business.
  33. 33. Stock Analysis: Further Research Does the company’s future look promising? What are the experts saying? What is the company's past?
  34. 34. Grow Assets Set goals & plan to reach them Live beneath your means Never stop learning Get started early Build automatic wealth Learn from mistakes Apply more than minimum Keep assets out of reach Manage risk
  35. 35. “Wealth is not without its advantages and the case to the contrary, although it has often been made, has never proved widely persuasive.” - John Kenneth Galbraith
  36. 36. We hope you enjoyed your Special Report! Curtis Roese is an experienced professional with extensive experience in personal finance and small business matters. Curtis writes and publishes articles, courses, guides and special reports on his personal finance blog. Common Cents Wisdom is a website with hundreds of informative articles, special reports, resources to assist you with all of your financial concerns and a free monthly newsletter. Sign up to receive your free eBook "Common Cents" and get started today on the road to financial freedom!
  37. 37. This Free Course Includes:  A Complete 80+ Page, 16-Module Home Study Course in PDF format  Companion Worksheets and Cheat Sheets  Budget Helpers, Worksheets, and Trackers  Bonus Audio Interviews with Financial Experts  My Secret Resource List of Helpful Money Sites, Tools, and Calculators  Bonus #1: Boosting Your Value Without a Formal Education  Bonus #2: Building a Wealth and Prosperity Mindset  Bonus #3: 25 Ways To Protect Your Identity Don’t Delay! Get Your Free Course Now!
  38. 38. Sign Up ~ FREE Personal Finance Newsletter “Finally… A High-Quality, Content Rich, No BS Newsletter Written Specifically For Those Interested In Personal Finance” What you can expect to receive EVERY Month by signing up:  Special Report – 10 to 20 page in-depth report on Personal Finance topics important to you!  Articles to keep you informed on a variety of topics relevant to your financial freedom.  Action Guides, Worksheets, Resources & Buyer Guides!  Monthly Financial Calendar to keep you organized and current with managing your personal finances.  Periodic reviews of Products and Services – Real Financial Solutions ~ Real Fast! http://www.commoncentswisdom.com/newsletter/

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