A quality wealth strategy will be diverse. Historically, diverse usually meant stocks, bonds and mutual funds. Today, that is still true, but many add commodities, currencies and business investments. The modern view adds stability to an investment portfolio while increasing the opportunity to hit a home run. Let’s look at a few of these methods of diversifying.
In this circumstance, it doesn’t mean building roads and bridges, but those instruments which support an investment strategy. For example, a website might be part of your business and therefore part of your business infrastructure. SEO might be a method of bringing in more attention to your business and therefore considered part of your investment infrastructure. Some people are more comfortable with tangible assets, like silver, in their portfolio. Regardless of the ups and downs of the precious metal, people feel confident in holding their investments in their hands.
Many people today buy and sell stocks, bonds, and commodities and flip them quickly. There is little love for these purchases in many cases. It is simply an attempt to buy low and sell high or at least higher in a rapid frequency. You can buy silver bullion today and sell it tomorrow if at a profit if the market moves enough. If not, you can hold the silver bars until you are confident in their value. With commodities like silver, you can own the actual metal or own the rights to the commodity through exchanges. The rights are easier and quicker to trade, but people are more trusting and confident in the actual bullion and bars.
A critical component of wealth management has nothing to do with which assets you hold, but how you manage their performance. One key to developing wealth is allowing investments to mature. Some investments might seem slow. For example, if you bought Apple stock twenty years ago, you might have enjoyed some gains, but after the iPod, iPhone, and iTunes, the stock exploded. If you were impatient with those returns, you might have cut yourself out of massive gains.
Today, investing still means what it used to, but the methods of achieving your goals have modernized. For many, modernization doesn’t mean avoiding the classic, tried and true investments, however. They still have value, and in many cases, they are comforting.