6 strategies for high returns with managed investment risk.
6 strategies for high returns with managed investment risk.
Naturally, any investor hopes for high returns on their investments. The allure of making big money can be tempting, but it often involves stepping out of one’s comfort zone and taking on more risk. While chasing high returns can give an adrenaline rush, it may not always be the best strategy for long-term success. To strike a balance between risk and reward, it’s crucial to diversify your portfolio and manage your risk effectively.
The experts at ANBLE Advisor Collective offer valuable insights on how to make money without taking unnecessary risks. Their advice revolves around meeting basic needs, equipping oneself with the right tools and systems, outlining a savings and investment plan, keeping a portion of your portfolio in cash, considering real estate investments, and placing calculated bets on high-returning opportunities.
Chris Alman of Equip Financial Partners advises investors to prioritize diversification. While it may seem “boring,” a well-diversified portfolio can provide predictable returns over time, ensuring a secure future. Once the foundation is set, opportunistic investing can be pursued to boost desired outcomes.
Justin Donald, a Lifestyle Investor, emphasizes the importance of setting oneself up for success. This includes having the right tools and a trusted portfolio management system in place. It is also essential to thoroughly understand the terms and contracts, including the fine print, to avoid any unexpected surprises. By having a solid plan and effective setup, investors can minimize long-term risks and achieve a steady return.
Marguerita Cheng from Blue Ocean Global Wealth highlights the significance of creating a savings and investment plan. Savings provide liquidity for emergencies and opportunities, while investments offer the potential for capital appreciation greater than inflation over the long term. By outlining a well-thought-out plan, investors can ensure a balanced approach to wealth accumulation.
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Andrew Schrage of Money Crashers LLC advises keeping a portion of one’s portfolio in cash. By maintaining a consistent amount of liquid assets, preferably in a high-yield savings account insured by the FDIC, investors can provide a safety net and liquidity. This is particularly important in times of uncertainty, and with interest rates currently being higher, it becomes even more appealing.
Tore Steen from CrowdStreet, Inc. suggests considering real estate as an option for diversification. Real estate investments are often overlooked, but they provide an opportunity to diversify one’s portfolio and potentially yield lucrative returns. With advancements in crowdfunding and technology, commercial real estate investing has become more accessible to a wider range of investors.
Dennis McNamara of wHealth Advisors addresses the importance of managing longevity risk. Traditional, plain vanilla index fund portfolios may fall short in light of increased life expectancy. To ensure adequate returns, McNamara recommends allocating a portion of assets to “moonshot” opportunities with higher potential returns. This calculated approach to investing can help mitigate the risk of outliving one’s wealth.
In conclusion, making money as an investor does not have to involve excessive risk-taking. It requires finding the right balance between the desire for high returns and the need for portfolio diversification and risk management. By following the advice of ANBLE Advisor Collective’s experts, investors can cultivate a strategy that not only maximizes returns but also provides stability and peace of mind for the future.
ANBLE Advisor Collective is the premier criteria-based professional organization for personal finance advisors, managers, and executives. Learn more here.
Disclaimer: The opinions and recommendations expressed by the experts are their own and do not constitute financial advice. Investors should conduct their own research and seek professional guidance when making investment decisions.
