How do modern men build financial security and wealth? The good news is that multiple options can get you from square one to a fatter bank account in a few years or less. Real estate investing is one of the top choices among educated, ambitious men, which has been a go-to source of wealth and prosperity for decades. Other reliable money-related strategies include:
- Making a detailed retirement plan, including precious metals in an investment portfolio
- Making a habit of saving regularly
- Learning how life insurance can be a financial game-changer for long-term security.
What’s the best place to begin? The answer to that question depends on your current situation, personal preferences, and monetary needs. Review the following options for creating wealth and see which suits your unique position best.
Real Estate Investing
Making a plan to acquire real estate is one of the most potent decisions a working man can make. Not only is real estate a popular investment technique due to the chance for property value appreciation, but it also offers owners the chance for regular cash flow, beneficial tax treatment, and an excellent hedge against inflation. Unlike paper assets, land and property are substantial holdings that tend to maintain their worth over long periods. For many who choose this category of wealth building, the well-known 1031 exchange is an effective method for minimizing yearly property tax bills and deferring capital gains taxes on a given real estate investment. The advantages of owning land, buildings, homes, and similar property are numerous, which is why so many people are devotees of the real estate niche.
For younger guys who are single but plan to marry someday, it’s crucial to develop a detailed retirement plan as early as possible. You can hire a professional to help create a plan that suits your income, goals, and personal preferences. The trick to effective retirement planning is doing it early. For those in their twenties and thirties, compound interest can turn relatively small monthly contributions into large sums by the time they reach retirement age. After developing a plan, remember to adjust it at least once per year or as your situation changes.
Precious Metals for Diversification
It’s hard to view the daily financial news without noticing at least a half-dozen advertisements about gold and other precious metals. But, despite all the hype and overstated claims, it can be wise to add a modest amount of gold to a portfolio. Whether saving for retirement or setting up an online investment account, there are ways to incorporate precious metals into the mix. In many situations, it can be beneficial to maintain about five percent of a portfolio’s total value in gold, silver, palladium, or platinum.
Life Insurance Strategy
One of the most imaginative things a young guy can do for himself is purchasing life insurance. There are multiple policies and strategies for getting the most out of this asset class. Life insurance policies pay a benefit upon your death. But they can be a uniquely potent way to build wealth, amass savings, and create a ready source of cash should you ever need to borrow against a policy’s accumulated value.