Alright, so investing is arguably the most popular topic when it comes to financial planning.
There are so many things to consider!
Short term investing, mid term investing, long term investing…
Then there’s investing in stocks, bonds, crypto, real estate, annuities, commercial mortgage notes, art, NFT’s, businesses… the list goes on, and on… and on.
But Never Fear!
We’re about to simplify this gigantic topic for you, and hopefully, make it less intimidating.
After all… this is the Simple Money channel, isn’t it?
Alright, to break this down into the simplest terms possible, we’re going to just focus on the different intentions behind investing…
Are you looking for a quick flip? That would be short term investing.
Are you looking for some nice gains so you can cash out and buy something bigger? That would be mid term investing.
Are you looking to build up a nest egg for your golden years? That would be long term investing.
Now the key here is to realize that each different phase has its own preferred investment vehicles.
Short Term Investing
The short term flip could be something that last a few months, weeks, days or even hours. The short term flip involves the highest level of risk AKA aggressive.
The term trading has been thrown around so much lately, that you may be immune to it by now.
Everyone is a trading expert these days… forex traders, crypto traders, stock traders… they’re everywhere! And you may have even gotten a DM from one of these so-called experts.
What’s important to know is that even though there are some great gains that can happen in the short term flip, you can also suffer some pretty bad losses. And I’m definitely not here to tell you what to buy or not to buy, and I’m definitely not trying to discourage you from investing in stocks or crypto or things like that.
But I will say that the more research and due diligence that you do, the better off you’ll be.
Some good examples of a short term flip would be stocks, NFT’s and if you’ve got the budget for it, real estate.
Please, please PLEASE do a ton of research before you invest your hard earned cash into any type of volatile investment.
Mid Term Investing
Mid term investing could go across a span of a few months to a few years… it all depends on your goals. The midterm investment offers moderate risk.
The goals for this category can be equally split between earning income, making gains, and selling for profit.
And there are plenty of options available for this category.
You can go into:
Websites and businesses
And of course, real estate
Long Term Investing
This is the nest egg concept. Long term investing could span across 7-10 years +.
The assets in this category should be the most secure. There should be hardly any risk associated with this category.
You can leverage
Or Business Purchases
No matter what you choose to do, please make sure that you do a great deal of research and even consult with a Financial Planner or Financial Advisor before you start investing.
Although there are vehicles like the Indexed Annuity that will fully protect your principal balance and you’ll never lose money, most other growth vehicles have some kind of risk associated with them and should be carefully reviewed before purchased.
Good luck, and happy investing!