Best Ways to Get Rich

sham2007 By sham2007, 28th Dec 2015 | Follow this author | RSS Feed | Short URL
Posted in Wikinut>Money>Investing

Maximizing investments, reducing taxes, and eliminating debt are the best moves at least in making a significant difference in your financial security and enjoy your retirement years. And don’t forget that any sound strategy mostly work as long as you stick with it.

Accumulating Wealth in Your Lifetime

Today, the internet is with mountains of “free” stuff on “how to get rich or make money quick” which sounds so exciting and simply too good to be true. In practice, however, those advises are mostly found fraud -- unless of course, a distant relative of someone died and left him his millions. Those wealthiest people in the world, including the great investor Warren Buffet did not become wealthy overnight. Instead they accumulated their wealth over decades by managing their finances intelligently - a consistent saving and budget-minded investment decisions. Hence, if you are serious to accumulate wealth in your lifetime, here are some of the practical ways that will help you to get it done to their foots steps.

Do not go after yield
Although, dividend-paying stocks usually demonstrate to outperform non-divided-paying stocks, most of the time professionals advise investors not to focus too much on yields.
Often, those more troubled companies as they mostly depend on internal financing issue high-dividend paying stocks. The more you pick that high-dividend-paying stock; you are likely to lose more as a result, since the stock price often declines more than the yield rate. Remember that a higher return comes at a cost entailing a more risk.
Instead, concentrate more on big-cap stocks that tend to provide an opportunity to double or triple your portfolio in value. Companies that are well established at large, with a strong cash or high liquidity position and constantly growing issue such stocks. Microsoft, General Electric, McDonald's, are having relatively stable earnings over a period of years tend to increase your portfolio value and pay you high dividends at the same time.

Do not respond aggressively
No matter how successful you become, or a profitable investment type it seems to be, do not let your ego get involved. Before any decision, you need to make, consider the relevant source of investment idea and remember that if you are considering it, your competitors are doing as well.
It is obvious that, discovering the next Netflix early on can make your portfolio value rich in a significant manner, but for every Netflix you think you have found, you are likely to find a number of companies that establish to be more promise than simply making profit.
Consider investing on leading companies in their respective industries that are constantly growing revenue and earnings, and then gently drop into your account in potential. This way, if your next big idea results in a positive outcome as Netflix, you can gain and get rich without the risk of collapsing the rest of your retirement account.
Above all, diversifying wisely is the best solution. Holding a variety of investments different in type and market environments helps you to reduce the risk of holding a single one. For example, you can put your money in different types of stocks located worldwide, not just in the U.S. market. You can also further diversify by investing in real estate and others.

Take advantage of tax-deductible retirement accounts
Traditional IRAs, Roth IRAs, and a 401(k) plan are some of the tax-advantage offering retirement accounts that can enable you well move toward your goal. Todd Campbell, owner of E.B. capital markets, LLC.EB states that, these accounts provide best opportunities for long-term wealth buildings, yet many American people could not able maximize their benefits.
Qualifying money investors for traditional IRAs can benefit of writing off an annual contribution plan of 5,500-dollars in 2016, and Americans who are 50 and more in age can add an additional 1,000-dollars catch-up contribution. Roth IRAs do provide tax- free withdrawals in retirement, but do not offer a tax advantage up front. Contribution limits to Roth IRAs are the same as for traditional IRAs.
401(k) plans and others in the same category grant investors to save even more pre-tax money than a traditional IRA. In 2016, people can contribute up to 18,000-dollar to a 401(k) and people 50 and above can add a supplemental 6,000-dollars courtesy of the catch-up provision. Self employed you are, adopting an SEP-IRA plan can provide you to contribute up to the lesser of 25% of income or 53,000-dollars in 2016.

Control your credit
While maximizing your revenue, you need to manage the negatively wealth affecting factors, too. Managing your personal profit-loss statement like how your favorite companies do theirs will give you more financial flexibilities to accumulate your personal wealth.
So, consider analyzing your debt to control your credit. For example, homes are among the most properties that prove to appreciate over time and have tax-deductible loans offering tax advantage for many Americans. Thus, buying and eventually selling a home is a sure way to acquire wealth and with no need one to worry much about as other forms of debt. While those of bought things on credit related to others forms of debt such as credit card debt and auto-debt, each thing usually declines in value over time and with no tax advantages to offer. So pay that debt off sooner and divert those hundreds or thousands of dollars saved a month toward your investment accounts.
Moreover, to pay off credit cards and to pay your car loan off sooner, use a plan that includes making two extra payments every year and at least doubling the monthly minimum payment.

In conclusion
While all those described on the above are some of the effective or best ways to get rich in your lifetime there is no guarantee that these moves will make you rich in specific applications, owing to the risk that is involved in investing or saving of almost any kind. Yet maximizing investments, reducing taxes, and eliminating debt are the best moves at least in making a significant difference in your financial security status up and enjoy your retirement years. And don’t forget that any sound strategy mostly work as long as you stick with it.


Accumulating Wealth, Best Ways To Get Rich, Get Rich, Investing, Investment, Investment Decisions, Retirement, Retirement Accounts, Wealth

Meet the author

author avatar sham2007
I am results-driven business consultant with over 15 years of experience. I have advised so many people in investing, overseeing business operations and projects successfully. I am also interested in

Share this page

moderator johnnydod moderated this page.
If you have any complaints about this content, please let us know


Add a comment
Can't login?