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We always hear that building wealth is a marathon and not a sprint, but it’s easy to get stuck at the beginning when you’re not sure where to start. Thanks to technology and the internet, there’s almost too much information about personal finance and investing to soak in these days. Not only can you talk with a financial advisor, invest with a robo-advisor or manage your investments entirely on your own, but you can trade individual stocks, invest in index funds or mutual funds or buy fractional shares of companies you believe in.
And then there’s cryptocurrency, NFTs (non-fungible tokens) and a world of digital assets some experts promote as the best way to grow your net worth. All of this begs an important question: What are the best ways to build long-term wealth?
At the end of the day, there are numerous ways to build a solid investment portfolio using stocks, bonds, mutual funds, real estate and more. However, the right strategy for you really depends on how much extra cash you have, your tolerance for risk and when you may need to access your money in the future.
Investing is the act of buying financial assets with the aim of growing your wealth as a result of those assets appreciating in value, along with paying interest or dividends in some cases. While you can invest through a financial advisor or with the help of a brokerage firm, you can also build your own investment account and invest in alternative options outside of traditional securities.
According to financial advisor Taylor Schulte, host of the Stay Wealthy Retirement Podcast, one of the biggest factors to consider before you get started is your investment time horizon. “While 10 years might feel like a long time to some people, in the investing world, 10 years is …….