The clever person who once said that money is the root of all wealth, was onto something. There’s more truth in that humorous line than meets the eye. In fact, in today’s lagging economic environment, hard-working adults are exploring every conceivable technique for discovering the root of personal wealth. For many, tried-and-true strategies like real estate investing are still the go-to solution.
Others look to assets like life insurance, fine art, precious metals, and cryptocurrency to improve their personal financial security. Whatever approach you use to create long-term wealth, be sure to explore several options before settling on the ones that are most suited to your particular lifestyle and economic realities. Here are more details about some of the ways people are amassing wealth in the 2020s.
Real Estate
Real estate has long been a favorite wealth building component for savvy adults who have the patience and intelligence to identify properties with excellent financial potential. In fact, one of the first techniques successful real estate investors need to learn is how to do the right kind of research on prospective acquisitions. But there’s more to it than that. Those looking to buy a particular property should assess recent growth in the location, any commercial developments that are already on the drawing board, the neighborhood’s history of measurable growth, and the general crime rate.
While there are dozens of worthwhile metrics an investor can take into account, capitalization rate is perhaps the most relevant. It’s essential for anyone interested in buying a property to learn how to calculate, define, and evaluate the capitalization rate. Of all the ways to measure profit potential on a given piece of real estate, the capitalization rate is one of the most useful.
Investment-Grade Fine Art
The surge in interest in fine art is an unexpected part of the modern investing scene. But since the digital age and the advent of crowdsourced everything, it’s now possible to purchase shares in price artworks. Additionally, some investors still prefer the old-fashioned way of purchasing whole pieces outright. While the second method can call for higher upfront costs, both techniques offer individuals the chance to aim for long-term profits in a market that has outperformed equities and precious metals for the past several years.
Whole Life Insurance
While life insurance isn’t everyone’s favorite discussion topic, the niche can be a lucrative one for working adults who like to build wealth and financial security at the same time. For more than a century, young professionals have turned to whole life policies as a way to save, invest in the stock market, protect their financial futures, and provide for loved ones after their death. For adults in their twenties and thirties, whole life policies can be an inexpensive way to get started on the long road toward financial stability and wealth.
Precious Metals and Cryptocurrency
Gold, silver, and bitcoin are three of the hottest assets of the 2020s, and there are dozens of reasons for that odd phenomenon. Besides the highly unstable economy and the lagging stock market, and in spite of there being many unknown facts about crypto in general, many young people are convinced that cryptocurrency, as an asset class, is getting ready to take off. Be sure to get professional advice and move cautiously if you choose to put a percentage of your portfolio into metals or crypto.