Financial predictions rarely seemed to come true, even when they were convincingly argued. Rather than trying to forecast the future or the financial markets, make a practical plan that allows you to create wealth without foresight. Become antifragile.
Buy bonds, index funds, real estate and a bit of gold, too. Invest in small businesses that you understand and you can control as a key shareholder. This gives you the chance of equity growth but also a steady flow of current income.
Here is a plan to become financially antifragile:
1.) Diversify your assets into the following categories: cash, bonds, stocks, gold, options and rental real estate.
2.) Invest in quality, dividend-paying stocks.
3.) Create a start-over fund that is equal to at least six months of income.
4.) Develop your cash-producing assets (options, performance stocks, bonds and rental real estate) that will give you ample yearly income.
5) Don’t give up your active income. If you don’t have a job now, get one, even if the income is small.
6.) If you don’t own a business, start or invest in one. Make sure it is a business that you understand and over which you can have some control.
7.) Get insurance – but only what you really need – to protect your health, your house and all of your other valuable possessions.
Sven Franssen