Have you ever looked around a bookstore for the section on how to stay rich? You could fill a library with books about how to get rich. That’s because there are so many ways to get rich. You can take a lot of risk and hope to get lucky. You can save diligently for decades. You can invent something. The possibilities are endless. But how to do you stay rich? That’s easy. Control your spending and diversify your investment risks.
Control your spending – Most people have some limitations on how much they can spend. Know your limits. 4% is still a decent rule of thumb for retired folks. That means you can expect your money to last through your retirement if your investment withdrawals are 4% or less. That may require some adjustments along the way. Be sure to update your financial plan annually.
Diversify your investment risks – If you want to stay rich, don’t worry about maximizing your returns. Diversify your investments and let capitalism work for you. Don’t get caught chasing sexy tech stocks today. Own some of them along with boring highly profitable companies that are located around the world. If 2020 taught us anything, it’s that we can’t predict the future. Don’t invest as if you can.
That’s a wrap. Any questions?
About the Author: John O’Connor
John has more than ten years experience as an Investment Advisor. He focuses on devising and maintaining portfolios that meet individuals’ needs, investment research, and investment strategy. John has been recognized as a “FIVE STAR wealth manager” by Twin Cities Business Magazine 2016-2020.Legal Disclaimer: These posts do not constitute an offer or recommendation to buy or sell any securities or instruments or to participate in any particular investment or trading strategy. They are for informational purposes only. CTW gathers its data from sources it considers reliable. However, CTW makes no express or implied warranties regarding the accuracy of this information or any opinions expressed by the author and may update or change them without prior notification.