No matter where you are at with building an investment portfolio and your finances, these are the four essentials everyone must be applying to survive, and have any hope to thrive in today’s evolving economy.
1. Passive Income Generation
Passive income, and multiple sources of income has never been more important in most people’s lifetimes.
At least 51% of companies are now laying off workers. Including the largest and wealthiest companies in the world. Hiring freezes are in effect. So, those that lose their jobs are highly unlikely to find new ones.
The next phase of this trend is declining wages and workers being pushed even harder to manage the workload of several employees, in a tough workplace environment.
Everyone needs to be generating additional income outside of their regular jobs or businesses. Passive income is especially important. This multiplies your earning potential, and ensures money is coming in, even when you can’t go to work.
2. Move To Investments With Downside Protection
It doesn’t matter how many hundreds of stocks you have in your portfolio, public stocks offer no downside protection, or floor for losses. This is also true of most alternative investments, including crypto and investments in tech startups.
The Fed has made no secret of the fact that it is pulling out all the stops to crash the economy. It appears to be the only tool that they think they have to rein in inflation.
Of course, in turn that means squashing traditional retirement account balances, and the stock market. Many companies are already running on fumes, with even lenders going bust.
You may not be able to afford to allocate too much of your portfolio to gold and bonds, but the right types of real estate provide a concrete floor to protect your wealth, and the potential for strong returns.
3. Wealth Growth To Keep Up With Inflation
Preservation of your nest egg and income are important, but growth is also essential. Even more so in times like these where inflation continues to rage out of control. Some experts even anticipate inflation to surge much higher in the near future.
If your overall investment portfolio is returning less than actual inflation, you are losing money every day. Each day your money is being depleted.
So, those with a well-balanced portfolio, will need to demand even more growth from their growth investments to balance this out.
Today, this can be found in opportunistic investments which are acquired at deep discounts, and or have substantial value add potential. You can still add double digit growth to your capital with the right picks here.
Everyone looked like a financial genius in the past few years. We’ve been living through over a decade where it has been almost impossible to lose money. It turned many brand new and very green individuals into self-proclaimed gurus. Many of them are already folding their businesses and are running for the woods.
90% of gurus and companies won’t survive the next phase of the economy. They will wipe out a lot of wealth on their way out the door.
This is a time when it is absolutely vital to seek out true experience. Not just from those that have lived through previous recessions and depressions, but who managed not to lose their investors’ money during those times.