Missed out on an early retirement plan?
Don’t have enough funds for your child’s marriage?
Failed to create a fund for your child’s overseas education?
We won’t display any false empathies, but few ways on how you can overcome this shortfall and still create wealth.
Undoubtedly, an early start is a smart start!
However, our ancestors always believed that it is better to be late than never.
Investments definitely work wonders when started early. This is on account of the power of compounding which makes your investments grow.
But no age is the wrong age to start making investments. Even if you are 50!
Yes, you heard it right.
While we stress the importance of long term investing before you reach the age of 30 to have a comfortable retirement life, there are other factors which also play a pivotal role in creating wealth. They are:
1. Investing in sound stocks
Is it worth if you invest in a stock which is run by the incompetent management team?
At the age of 25, you invest in a stock which fails to establish a strong business model? Is it worth to start early?
The key to successful investing is investing in fundamentally strong stocks and patiently waiting for those businesses to grow.
2. Having an expert whom you trust
When you invest, you are buying a day that you don’t have to work.
Amazing, right? But is it easy to do so? Well, we hate but we have to say no.
Investing in Indian stock markets, irrespective of the age you are starting at, demands the skills of a specialist to conduct the fundamental analysis of stocks. And this only comes with experience and sound technical knowledge.
Also, an expert does much beyond this. It understands your financial goals and risk appetite to help you achieve goals in a given time frame. Your goals can be your retirement plan, child’s marriage or education or even an exotic vacation with your spouse.
3. Investing for a long-term:
There is a key difference between investing and trading. Trading is a short-term buying and selling driven by a desire to earn quick money and treacherous reliance on market rumours.
Warren Buffett cited:
‘If you are not willing to own a stock for 10 years, do not think about owning it for 10 minutes.’
4. Diversification
Do not put all eggs in one basket.
If you are starting at or after the age of 40, create an investment plan which is not too risky. Diversify your stock portfolio by investing in sound stocks from different sectors. One can also consider investing substantial amount in fixed deposit to ensure quick liquidity for emergencies. You can also consider investing in government bonds to receive fixed periodic returns. For senior citizens, investing in sound stocks along with Senior Citizen Savings Scheme is a must have in their portfolios.
So for the ones who missed out on early investing benefits, do not get disheartened. We have got good news for you.
Here are a few tips which you can put into practice to create wealth:
Follow 3A rule for the time you stay invested. 3A stands for Awareness, Action and Accomplishment.
How Research & Ranking can help you?
- Take the first step towards wealth creation. Each investor has a unique financial objective and risk appetite. Assessing your financial goals will be a good way to kick-start your voyage towards wealth creation.
- Join the R&R family. And all it will take is a ‘click’. You can visit our page https://www.researchandranking.com/subscribe/ and subscribe to the plan most relevant to you.
- Invest with us. Why? Because we are the name you can trust to create a robust portfolio for your long-term investments. We have a team of dedicated professionals who identify the companies with strong competitive advantage and fundamentals.
- Bury all your worries. We don’t just advice and forget! We continuously monitor the recommended multibagger stocks on your behalf and advice portfolio rebalancing, wherever necessary.
- And lastly, don’t worry about the returns. We aim to deliver what we promise.
Read more: How Long-term investing helps create life-changing wealth – TOI.