Don’t make the same mistake. Think back to the 2008 housing bubble.
First came rapid growth in home ownership and subsequently, rapid growth in consumer debt. Many of those homeowners were not fit to pay those debts back.
Then, risky investment products like mortgage-backed securities disguised and expanded those bad loans. After some time, the fragile house of cards fell, and the entire world felt the effects of a depressed market.
Their mindset and approach are different from the masses, and they end up rising above the herd. Unfortunately, those same innovators will take a very conventional approach to investing. They will allocate heavily in risky areas, pay premium fees to…
What is the most successful movie of all time in terms of domestic box office gross? Titanic? Star Wars? One of the slew of recent superhero movies? In actual dollars, the answer would be Star Wars: The Force Awakens. Released…
When everything’s going great, people like to take the credit for their good fortune, but when things go south, they start blaming something or someone else. With investing, when people lose money, they like to blame the money and the pursuit of money for their own problems. And they blame the players and actors underlying the money – the market, wall street, financial advisors – for putting them in their precarious financial situation. They blame everybody but themselves.
Warren Buffett has become a household name due to his massive success in the investing world. What makes him unique is that his story, and the investments he makes, are not particularly compelling. He does not take big swings at risky investing plays. Instead, he looks for high-quality companies that are fairly valued and invests heavily.
In 60% of cases where a family’s fortune is blown, it’s usually exhausted in one generation by the children of the person who created the wealth, according to Roy Williams, president of wealth consultancy The Williams Group. In 90% of the cases where a fortune is blown, it’s gone by the second generation, by the time the grandchildren die.
How do life insurance companies make money? From the law of averages. On average, the life insurance company collects more in life insurance premiums than it will ever have to pay out in death benefits. That’s because with hundreds of thousands, sometimes millions of policyholders with life insurance policies, most pay more in premiums than their families will collect in death benefits.
The camp seeking passive income to increase your retirement savings with safe consistent returns? Or do you fall under the camp seeking to build wealth through a compounding passive income stream?
No matter which camp you fall under, no doubt you’ve considered both stocks and real estate as passive investment options and the reason you’ve sought out passive income opportunities is because you either don’t have the time or feel like you don’t possess the expertise to actively trade stocks or actively invest in real estate.
Nobody likes road and freeway construction. It’s loud, annoying and slows traffic.
How many times have you cursed while waiting for a road worker to turn his sign from STOP to SLOW? And how many times have you passed the same construction site for months on end wondering when it was ever going to be completed and why so many workers were standing around.
What comes to mind when you look at the chart above? What could the chart possibly be tracking? The EKG of a defective heart? Altitude measurements of the various Tour de France stages? The stress level of an air traffic controller during peak hours? None of the above. The above chart represents the Bitcoin price over the past three months.