The increase in own funds and their placement in a variety of areas in addition to the excitement is akin to the jumps and also improves the level of human life. And to be provided and rich is very good - you do not need to think about your daily bread and how to satisfy vital needs. This is one of the reasons for exploring those projects where rich people invest. And from here close to own investment.
Where do rich people invest?
In the United States, sociological surveys of investment directions of both ordinary citizens and millionaires are conducted regularly. The results of these works were obtained as follows: wealthy people prefer to invest in:
- financial instruments — 28%;
- prestigious housing - 20%;
- business — 20%;
- money - 14%;
- real estate for commercial purposes - 10%
- luxury and antiques 2%;
- jewels and gold — 1%.
As you can see, the most promising for American millionaires are stocks, bonds, and other exchange-traded papers. This is what sophisticated investors do. But It is worth noting that the results of investment objects will differ for different age groups.
So middle-aged people (40-45 years old) prefer to invest in expensive residential real estate. While young 20-25 years old, tend to place their capital by investing in riskier instruments. Young capitalists risk not only their own but also borrowed capital. While people of the old school rely only on their own funds.
Ways of investing in youth
Young investors are generally inherently at risk because there are very few who invest in financial instruments and real estate for up to 30 years. At this age, preference is given to start-ups or other alternative types of investment.
A win-win for many people. A contribution to your skills and abilities will help on the path to financial independence, especially if there is no special support from relatives. Therefore, attending courses, training and seminars is the way to determine your direction in life.
Another popular type of youth investment is their business, their startup. Many enterprises began with garages near the house and grew to global corporations. Young people are trying to create their own small firms, bringing some income. In addition, in the pros of their projects, you can record the expansion of ties, experience with clients and employees, understanding the basics of entrepreneurship and the market.
This type of investment is popular not only with young people but also with people of different ages. Mutual funds are attracted by their simplicity, affordability, and diversification. Yes, they show little profit, but they are reliable and the entry threshold is acceptable even for the middle class.
Where do investors invest 30 and older?
The older generation does not willingly take risks and prefers to invest in more conservative instruments.
Real estate under housing
The most traditional and standard option for investment. Buying a home and renting it out is practically free of cost. Payback may be different and depends on the area of the city and the condition of the apartment. But in general, is able to provide a stable income.
Any currency loses its value. Precious metals, including popular gold, are always becoming more expensive. Therefore, experienced investors who do not seek fast income prefer to buy precious metals or securities backed by gold.
Having lost the excitement and fervor inherent in youth, investors in age often give preference to exchange trading. This is a high-risk occupation, but it can bring great returns. The main thing here is the ability to take the necessary risk and not lose your head. It is enough to buy a few decent stocks, form your portfolio and receive dividends.
In addition to the conservative and familiar ways to invest, modern realities give rise to new, alternative opportunities for investing. Which rich people use. Here are some more ways where rich people invest.
Exclusive Real Estate
Buying and restoring a historic building is considered a worthwhile investment. The value of such an asset grows from its historical value. And the image of the owner increases.
Paintings, sculptures and other objects of art are bought with an eye to the future. Such things either already have their high value, or can acquire it. Art objects do not lose their value over time, but rather increase it. In addition, a solid collection can be leased to the gallery and organize a new stream of passive income. Or even open your own gallery.
This is a new investment option that was previously unknown. But now the income from the resale of vintage wines is about 11%, and this is a very solid return for any asset. Even if these investments do not burn out - you can always drink wine.
The rules of investment of rich people
In addition to the question of where the rich are investing, there is another question about how rich people invest. Many wealthy people spend their investments in accordance with several general rules:
- A constant search for ideas and objects - ideas are around, the main thing is to be able to see and hear them. This is what the rich do - they are constantly looking for new ideas;
- Invest in what you understand — by avoiding complicated investments in those tools that they do not understand, rich people reduce the possible risks. They want to control where they invest money and see all the flows and movements;
- No need to splurge - buying elite items to emphasize status is a bad idea. No need to pay more where you can pay less. A typical example is Warren Buffet, who lives modestly in a small house, eats in a small restaurant and is the most successful investor in the world;
- Diversify - no need to store all eggs in one basket. There should always be several directions for investment; this applies to industries, countries, and currencies. The same Buffet has in its portfolio the shares of industrial enterprises, banks and financial institutions, and food concerns;
- Do not listen to those who have not achieved success - people love to advise, especially in those things in which they are profane. Therefore, it is worthwhile to listen only to those who have already achieved success and knowledge, and then they say;
- Strong nerves - restraint in investments is indispensable, a good investor must be able to control his emotions and nerves. Only in this way, you can manage millions and get big profits;
- Look for something new - sometimes it seems that nothing new can be invented, but a small change in the process can change the whole industry. And such a new feature can bring substantial dividends. Poet and need to look for new, even where everything is already open.