If you’re like me (and if the title grabbed you, you probably are,) you’re relatively new to being an adult. You’re in college or recently graduated, maybe even working. When we aren’t hyperbolizing our high school achievements, we’re stressing about that silver-eyed panther in the shadow of our thoughts: retirement.
Come on. You’re worried about it. We all are, even though we’re all convinced we’re somehow going to be millionaires and famous long before then (you guys should totally check out my soundcloud after this). Lucky for both of us, I have two bosses who are smarter (and richer) than me. Here’s how they amassed their savings.
I call it “Emma’s Investment Matrix”. Catchier names are currently in the works.
Let me break this down for you. There are two things you want to look at when investing in certain assets: liquidity and risk. There are assets with low liquidity and low risk, high liquidity and low risk, etc.
Depending on your risk tolerance, you can make money quickly or slowly. If you, like me, have the risk tolerance of an 8 year-old whose idea of pushing the limits is going on the Bug’s Life roller coaster at Disneyland, that first row looks pretty good.
However, the key to investing is diversifying. Give all those ideas up there a try. Invest in small increments and wait. We’re young and that means we can afford to let our money explore for a few years. Long run liquidity is on our side; we have more time to make more money. Take some extra earnings and invest in a few different assets. The best time to start saving is yesterday.
© New Kapitall Holdings LLC. All rights reserved. Kapitall Wire is a division of New Kapitall Holdings LLC. Kapitall Generation, LLC is a wholly owned subsidiary of New Kapitall Holdings LLC. Kapitall Wire, which is not a broker/dealer, offers free cutting edge content and commentary and is produced for informational purposes only and should not be construed as research. Kapitall Wire is a product offered by New Kapitall Holdings, however, KapGen compliance personnel will oversee all Kapitall Wire material prior to release.