Investing is the ultimate way of growing your wealth and while many people know
this it doesn't mean they themselves have
become rich by these means sure they may know which types of
investments exist like stocks bonds mutual funds and real estate
they may even know how to find investments that will offer them a
profit however what most investors don't know
is how to maximize those profits and in this video
i will share with you seven ways to maximize your investing returns
and if you're new to the channel then hit the subscribe button below for more
life-changing content number one doing your homework before
investing there is a saying that proper
preparation prevents poor performance this statement is true if you want to
make maximum profit on your investment no one can succeed in what they do
without proper knowledge therefore if you want to succeed as an investor
you need to do adequate research before putting your money in
any investment you have to know that investing your money is a risk in itself
that is you are not guaranteed that there will be a profit on your
investment at the end of the day the risk involved depends on the type of
investment too for example the risk of investing in treasury bills and
certificates of deposit is fairly low when compared to the risk
of investing in stocks and the way it works is that the greater
the risk involved the higher the expected profit but you
need to understand how this works so that you don't lose your money
high risk investments do not always produce the highest profit
and low risk investments are not always the safest
warren buffett the investor billionaire has this to say about risk
risk comes from not knowing what you're doing that means you should never invest
in what you don't understand you can hardly go wrong if you follow
this rule and only invest in what you understand
and it's never been easier to do proper research on the investments you are
seeking to buy you can check the company you want to
invest in online and read reviews about them
from other people who have invested in them you can also leverage mentors and
professionals to know if it is the right investment for you
in fact i will go over this point further later in the video
some questions you should ask yourself before you invest are
is the investment registered what are the risks involved in the potential
benefits will i be making a profit at the end of
the day if you want to maximize your investment returns don't invest in
anything until you have done your homework number two leveraging mentors
and professionals another important point to consider when
aiming to maximize investment return is leveraging mentors and professionals
you're probably not new to investing since you're looking for ways to
maximize your investment returns however there may be a few things that you still
need to know that a mentor will be able to teach you
you can learn all these things by yourself but it will take too much time
it may even involve some costly mistakes that will make you lose all your money
you've previously invested mentors who have recorded a consistent
level of success in investing will know how to avoid these mistakes
and also help you avoid them too even the famous warren buffett had a
mentor warren buffett's mentor was benjamin graham who wrote the famous
book the intelligent investor warren buffett enrolled in a business
school after reading the book just to be able to learn from his mentor he
developed a strong relationship with him and later worked in his company as he
learned the principles of investing so you see financial
mentors are important if you want to maximize your investing
returns you may not find someone like warren buffett or benjamin graham as a
mentor but you can leverage the help of those in your network or professionals
these professionals called financial advisors give you financial advice on
how to invest and manage your money they help you plan and monitor your
investments you either pay financial advisors a flat fee
or you pay them a certain percentage of your investment say one percent
if you are employing a financial advisor to manage a small amount of money
it will be better to pay a management fee rather than a flat fee
this is because the cost as a percentage of the total money invested
will be less costly than a flat fee however if you are investing large sums
of money then a flat fee structure may be more
economical number three investing for the long term
patience is a virtue when it comes to investing you should not see investing
as a get-rich-quick scheme because it isn't one you need to see investment
for what it is it is a tool to build wealth steadily
over time long-term investment means investments
that last for a minimum of one year you may wish to make a good profit
within a short time but committing to the long game
is a much more proven strategy interest paid on long-term investment accumulates
and becomes a compound interest this will increase your total obtainable
profit when you invest in the long term you don't need to worry about the
fluctuation in the market price since you know that your investment
is going to be across a long time horizon your mind will be at rest
knowing fully well that the market will correct itself and
things will be back to normal it is usually the only option that has
low risk and high return when you invest for the long term you
are sure that you're going to make a profit at the end of the day
and that the risks you will face should be smoothened out over the course of
time the short term on the other hand is hard
to predict and because of this there are greater chances of losing money
which is obviously not a way to maximize your investing returns
number four using a robo advisor for stock investing
you can maximize your investment return by doing away with the financial
investors and using a robo advisor robo advisors
are like your financial advisors just that they are not humans but they are
digital platforms that provide automated financial services
they are designed to work without supervision based on their programming
they are able to collect information about your financial situation
and offer advice on how to invest after signing up it asks you for details such
as the amount you are willing to invest and how much risk you are willing to
tolerate it makes decisions based on this information to design an investment
plan for you the first advantage of a robo advisor in
maximizing profits is that you don't have to pay any
financial advisor any money to do what the robo advisor can do for you
the goal is to make more investment returns so you must take advantage of
every platform available a human advisor will charge you higher than a robo
advisor robo advisors charge fees as low as 0.25
percent and 0.5 whereas human advisors can
charge as high as 1 percent for similar services
they are not expensive and that makes them a good option for anyone who wants
to maximize their return on investment they are designed so that almost anyone
can find it easy to invest there are no minimum balance
requirements which makes it a good option
even when you don't have that much money number five finding your optimal
asset mix how you allocate your assets can determine whether you will make the
maximum return on your investment or not the asset mix is how you divide your
investment portfolio like the saying goes do not put all your
eggs in one basket you don't want to put all your money in
one asset and luckily there are numerous options to choose from
like investing in bonds stocks mutual funds and real estate
the way you allocate your asset will be determined by the time you want to wait
and also the amount of risk you are willing to take on
depending on your goal you may want to make a long-term investment plan
or a shorter term with less risk the more risk that
investment has the more profit it is possibly going to produce
to have an optimal asset mix it is recommended that you choose both high
risk and low risk investments as well as
those with short and long term time horizons
low risk investments include cash and its equivalents such as treasury bills
and certificates of deposit they are safe and have lesser risks
however they also come with lower profits
that's why you need to find an optimal asset mix and add high risk and high
paying assets like stocks to your investment portfolio
number six manage your own physical properties
if you have physical property you may want to consider hiring a property
manager there's nothing wrong with hiring an
expert however if you want to maximize your return on investment
you need to consider managing your property by yourself
this will save you a lot of money at the end of the day and increase
your investment returns property management is not as hard as it seems
you only need some basic knowledge and you are good to go
this is the decision you will be glad you made you can easily do your own
repairs since most of them are just minor repairs and
in the case of a major repair you can easily get a professional to fix it for
you a property manager on the other hand
would probably hire the first contractor they come across
which would cost you a ton of money but by managing your own property you can
compare the prices from different managers
and thereby save yourself more money so how much are we talking
it's not uncommon to pay up to a 10 monthly fee for a property manager to
manage your properties and some other services like collecting
rents are easy things that you can do by yourself
in fact some of this process is done online and the property manager has
little or no role to play managing your
property by yourself will save you the ten percent for you ought to pay a
property manager and will help you maximize your
investing returns number seven hunt for hidden fees
it's possible to be paying for fees that you don't even know about
you have to hunt for these hidden fees to make a maximum return on your
investment many people don't even realize that they
are paying this money and some others think that is just a small
amount and doesn't matter well it does matter if you want to make
a profit the first place you should hunt for hidden fees is in your financial
advisor's bill they can be paid a one-time or sometimes
a continuous fee for managing your account
if your investment goal does not need management you may decide to pay a
one-time fee this will save you from the hidden
costs that you lose in the name of paying financial advisors
another hidden cost to hunt out for is the commission that most brokers take
when you buy or sell investments using their service
you need to understand how this works and know how much they
charge you each time you use the service you also need to understand how mutual
funds work you will be charged an expense ratio for managing your mutual
funds you should always look out for ways to
pay the lowest cost possible thanks for watching if you want
to go from the life you have to the life you deserve then hit the
subscribe button now