Investment Guide: Get Ahead in 2020
The start of the new year is a great time to revisit your investments and think about the future. As you probably know, 2019 was a record-setting year for the stock market which saw the S&P 500 rise 29%, its biggest one-year gain since 2013. 2020 will be different, of course, which is why it is important to craft a thoughtful plan for the new decade.
Based on trends and expertise from finance veterans of every stripe, there follows a few points to consider when setting your investment goals for 2020.
Develop an Investment Strategy
Always, start with the end in mind: it is important to clearly define your investment goals. What exactly do you hope to accomplish with the investment under consideration? Maybe you want to generate monthly income to support your lifestyle or maybe you want to build a nest-egg for later in life. You are prepared to invest today, for a benefit much later. You need a written plan. It doesn’t need to be anything fancy but writing it down on a single sheet of paper will help focus the mind and provide a starting point. When developing an investment plan you should consider:
How much time do you have to invest? (One’s approach will be different when starting at 25 years old than, say, 40).
How much are you comfortable investing? Do you have emergency funds available? What is your risk tolerance?
Articulate overall goals and milestone markers to make sure you stay on track. For example, do you want to keep contributing towards investments throughout the year?
Diversify Your Portfolio
One way to mitigate risk is to invest widely for a diversified portfolio. People often think of a diverse portfolio just in terms of the stock market and all its sectors, but diversity also means non-traditional investments, such as bonds, real estate or asset-backed investments, and other ‘alternative investments’. Each of these investment types has different levels of risk and return. For instance, stocks can be high risk and high return, whereas bonds are low risk and low return. Alternative investments may be less liquid (you cannot sell quickly or easily) but they may provide superior returns and provide exposure to asset classes like real estate. A well-diversified portfolio is part of a healthy investment strategy.
Automation Finance’s Reperformance Fund IV pays a target 8% return, and is a way to tap into the real estate market. The past three investment funds have returned an average rate of 21.5%. This fourth investment fund is the first one that is open to the general public. You can Invest now for as low as $250. You can also schedule a phone call with an investor relations specialist to learn more about what Automation Finance has to offer.
Hold Your Nerve in Times of Volatility
Try as we might, we cannot predict market behavior. So, it is important to build a diversified portfolio that includes non-correlated investments, such as real estate-backed investments (the value doesn’t change just because the stock market rises or falls). This, combined with a long-term vision, will help you chart a course through uncertain times. The temptation to sell when markets fall must be resisted at all costs. Over time, the market recovers from a shock and assets are re-priced based on the future income they will produce. You must consider the long run.
Some alternative investments (real estate or asset-backed investments) can be illiquid. Your principal is typically locked up for several years. Automation Finance is working to solve that problem. It offers ‘best-efforts liquidity’ which means that if you wish to liquidate your position early, they will work with you to re-purchase your shares. (Please read their offering circular for more information or reach out directly to an investor relations specialist for more details).
Be Mindful of Fees
How much are you really paying in fees?
Traditional investment firms charge 1% or more in investment fees. These fees are used to pay the broker who sold you the investment product. It may sound insignificant, but over the course of 30 years that adds up to 30% of your return lost to fees. Automation Finance prides itself on accessibility and has no such fees. Investors with Automation Finance not only see returns without unnecessary expenses, they also receive monthly dividends and the option to compound their fund by reinvesting their monthly dividend.
Be sure to understand the fees and policies of your investment firm to minimize expenses.
Get Ahead With Investments From Automation Finance
The key to getting ahead is to start investing as early in life as possible. Automation Finance’s Reperformance Fund IV offers real estate-backed investments for almost everyone with $250, with up to 8% annual return and dividends paid monthly. Moreover, they help people fast-track their earnings by compounding interest and reinvesting the monthly dividends.
You can start moving toward your goals today by signing up for an account with Automation Finance’s unique wealth-building offerings.