Financial Approaches of the Wealthy to Increase Your Net worth
Think of the sports high jump, have you ever foreseen a good or failed jump based on the athlete’s “approach” before the jump? Our financial “approach” determines our financial results too! Here are three (3) approaches that increase the wealth of the wealthy and can do the same for you!
1. "How many millionaires do you know have become wealthy by investing in savings accounts? I rest my case." (Robert G. Allen- Author Multiple Streams of Income): Savings accounts are essential and are designed for safety and liquidity. However, growing wealth requires taking greater risk which includes investing in assets, (real estate, bonds and the stock market”; which in the long run should outperform inflation and depreciation of the J$.
If you choose to “Do It Yourself”, determine the percentage of your portfolio that should be placed in each type of asset. Next determine the specific stocks or bonds and/or real estate to purchase. However, if you decide “JMMB can do it for Me” we will create the portfolio with the right mix of assets and choose individual assets too.
2. "The individual investor should act consistently as an investor and not as a speculator." (Ben Graham aka "the father of value investing"): Well-timed, quick supernormal profits seldom occur. So financial decisions should be guided by facts and solid analysis. It is critical to have some criteria for selecting your portfolio’s assets. E.g. They should meet your investment objective and timeline, whether 1 year, 3 years or more than 10 years.
If you choose to “Do It Yourself”, JMMB’s website (jmmb.com) has market research, stock prices and portfolio strategies to keep you informed and provide you with factual analysis. However, if you decide “JMMB Do It For Me”, after unearthing your financial goal, investment objective and timeline, we will create and manage your portfolio to match these.
3. “Professional investors always have an exit strategy BEFORE they invest.” (Robert Kiyosaki – Author – Rich Dad Poor Dad Series). With this mind-set of the goal at the beginning of the journey, try to purchase assets well below their top price, if not it will be difficult to obtain large profits on the sale of these assets. Additionally, to reduce emotional temptations, set investment guidelines including your desired profit margin and sell when the market price reaches your target price.
If you choose to “Do It Yourself”, simply enter the target sell price on JMMB’s Moneyline and it will be automatically sold, if there is a matching buyer, and you can instruct your financial advisor when to sell your bond(s) at specific prices. However, if you decide “JMMB Do It For Me”, our experts will determine when, and at what prices, to buy and/or sell your portfolio’s assets.
Do you want to increase your wealth using any of these approaches? Please call us on 876-998-5662.
Written by: Michelle Sinclair-Doyley, Manager, Group Financial Partnership Support & Financial Education