Investment Consulting

Friday, May 30, 2014

Investments - How to become rich and continue to be so

Investments - How to become rich and continue to be so

When many of us have some money to do investments, it is likely that we buy shares in a mutual fund or stock, if not before we spend on the technological apparatus of fashion. The rich really do not do that.

They tend to invest their money in property, works of art, business and other investments that the rest of us can only dream of. The way in which this particular group used their money unlike the rest of us, and makes your account balance is always positive.

Take the example of Joshua Coleman, 27. When his family sold his telecommunications company based in Chicago for $400 million in 2004, none of the family ran out to buy something extravagant.

Instead, they sought advice on how to keep their newfound wealth and even help it grow. And that search itself gave him the idea to Coleman for your next business: in 2011 he launched Momentum Advanced Planning, a company that connects people with experts in tax, legal and wealth.

If one day the business is sold, he will see a great return on investments, as happened with the first family business.

Investments - How to become rich and continue to be so

If you think that starting a business is a strange way to invest your money, then probably not among the ultra-rich.

People who have at least $30 billion in assets - known as "individuals with ultra high net worth" - investing in stocks and bonds, but also multiply your money by buying companies and investing in unusual settings, such as leasing or lease an airline.

"It's called alpha risk" says Coleman. " This type of investments can have many positive aspects."

But also disadvantages: these investments have higher risks than more traditional, so there is a greater chance of losing a lot of money. In addition, they are much less liquid than stocks and they could take months or even years to see the money in an investment.

However, even if you do not have millions to invest, you can learn a lot about how the rich get high returns on investments and apply it in your own portfolio.

Investments - How to become rich and continue to be so

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