What to Invest in ?
If you have been following us in the Facebook movement We Accelerate Prosperity you are now familiar with the concept of Accelerated Prosperity and the Financial Freedom Fund. In case you are not part of our movement, there is still time to get in the game.
For those of you who have started with the movements since the beginning, back in early July 2020, you’ve been building your financial freedom fund and are in a position to think, what am I going to invest in? What should I do?
There’s a Choice for Everyone
When you look at the possibilities to invest in, you have a wide choice. You can invest in businesses. You can invest in stocks, listed stocks (companies that are already listed in the stock market), you can invest in bonds, mutual funds, Forex, commodities, precious metals, to give an idea.
Theres is an overwhelmingly amount of choices, specially if you are just starting out.
The big questions is WHAT TO INVEST IN ? Below are some option we will be focusing on and our suggestion to you.
Early stage businesses: When we talk about investing in early stage businesses, we are looking at start-ups and young companies. We’re looking for those companies where you invest a thousand euros and that thousand years can become 1 million after 10 years time. It’s a challenging process and investing in such businesses takes a very long time. It’s probably the most difficult investment, as it can be emotionally draining. In general, the most challenging times for an investor is to invest in businesses and to invest in start-up companies. Why? For many reasons, but one of them being the fact that it is always a very lengthy process and investors can only recoup their investments at the very end.
Before you get discouraged, just think about what happened with investors that invested in companies such as Facebook and Uber. In the case of Facebook, they invested back in 2004, in their first funding round and for every thousand dollars invested, they were worth over twenty one million dollars when the company was listed in the stock market, in 2012, eight years late. If they still have their shares, those same one thousand dollars would be worth today over 140 million. Insane, right?
Real estate: Another asset class we believe has massive potential is real estate. This is still one of the best investments to generate cashflow and create recurring income, however, the barriers to enter may be quite steep, as one needs to have enough capital to get started and/or needs to be comfortable with getting into debt. There are numerous real estate experts providing courses for beginners. They tend to be on the expensive side, but they are an available option. Just think that if the course is very expensive, that money could directly go into a real estate project instead.
There are many ways to invest in real estate. Our preferred one is BTL or buy-to-let. The potential to build recurring income is huge and that’s probably one of the fastest ways to achieve financial freedom. Real estate is a very robust way to build up cash flow.
Oil and gas: Oil and gas investments are a very attractive asset class as it’s a strong dividend play, meaning that a one-time investment directly in an oil well, called a series, can pay quarterly dividends for 15, 20, or even more years. The current economy and indeed society are based on oil, for good or bad. Either we like it or not, we have to live with it, so might as well make the most of it.
Cryptocurrencies: The cryptocurrency market is currently in its infancy stage and provides probably the greatest opportunity of our time.
Bottom Line
Investing can be a great way to build your wealth over time, and investors have a range of investment options – from safe lower-return assets to riskier, higher-return ones. So that range means you’ll need to understand the pros and cons of each investment option to make an informed decision. While it seems daunting at first, many investors manage their own assets.