Tuesday, March 6, 2018

Control-Alt-Delete: Task Managing An Investment Portfolio

Aspiring millionaires want to, well, they want to make a million dollars and live a life
of luxury. It isn’t as if Richard Branson has to deal with the stresses of day to day
monotony now, does he? Turning to an investment is a wise and savvy move because
a portfolio can pay off big. A couple of well-timed and well-managed projects may
provide extra wealth that is enough to live on for the rest of your days. Or, the cash
can be plenty to reinvest and continue the cycle.

Branson and Buffett did it, and so can you with the right chess moves. Earning millions,
however, isn’t as easy as snapping your fingers and wishing upon a star. As well as
smart business ingenuity, it takes plenty of hard work and graft. Although far from
glamorous, managing a portfolio is essential for aspiring millionaires around the world.

Below is a selection of the tips investors should bear in mind to help them reach
their goals.

Start Early

Getting in on the ground floor is always more lucrative than jumping on the bandwagon.
Let’s take a look at the example Bitcoin. In the early days of cryptocurrencies, a single
Bitcoin cost as little as a tenth of a penny. Some have the figure at even lower. Nowadays,
the value is hovering around the $10,000 mark with the price at one point nearly
double the amount. Early investors chose to cash in and made a small fortune in the
process. Bitcoin is just one example, and it’s a skewed one because cryptocurrencies
are an anomaly which may or may not last. Still, making a move is better than waiting
to see how the market pans out because by the time you realize a share’s worth, it’s
too late.

Be Cash Liquid

One thing that novice investors don’t understand is that the game is a constant battle.
As a rule, the phrase “you have to speculate to accumulate” rings true. Without money,
there is no way to seize opportunities and strike while the iron is hot. Ironically,
developing a portfolio to make money means you have to find liquidity if you are
going to be successful. It’s never easy, but it is possible with the right tools. Always
treat payday loan companies with care, yet don’t dismiss them out of hand as too
dangerous or risky. As long as you can pay back the interest, short term loans are
excellent methods for investment. Other alternatives include credit cards and family
loans, the former being the preferred option of choice. With a piece of plastic, it is easy
to transfer the balance and prevent the interest payments from taking hold.

Keep Fees Low

On the other side of the coin, there is no reason to flush money down the drain. The
reason a credit card works well is that the expenses are minimal even over a long
period. The way forward is to find creative solutions to problems that exist. Are you
an amateur? If so, the odds are high that you have a broker to help make important
decisions. You may not be aware of this, yet online AI software can do the same job
for free. Just because no one is at the end of a phone line doesn’t mean there aren’t
pros to the process. Also, please never buy and sell based on market fluctuations if
you are a long-term investor. All this does is stunt the potential for growth, as well as
add unnecessary commission fees.


Picking a variety of stocks and options is the best way to protect your portfolio from
damage. When you put all of your eggs in one basket, a sharp downturn can obliterate
the good work and leave you penniless. Collections with a selection of long and
short-term, as well as conservative allocations tend to succeed as a bad period
won’t do too much damage. Investopedia recommends investing no more than 4%
of the total amount in one option, for example. Never rule out high risk, high reward
stocks either. As the name suggests, the odds are high that they may tank and the
money lost. However, it’s not the same as throwing money down the toilet as it’s a
calculated gamble which could pay off in short to medium-term. Not to sound like a
broken record, but cryptocurrencies are perfect examples. Also, ensure that you
rebalance the stocks when the market changes. That way, you limit exposure and
reflect your traditional percentage.


How much tax you pay is a personal choice to a point. In the end, you will always
have to give a chunk to the government to keep them happy. At least, that’s if everything
is legal and above board! A tax-deferred account, on the other hand, doesn’t require
you to pay anything until that point. By opting for one, it is possible to save a
considerable sum, especially for long-term projects. A 401k is something to look into
because a retirement fund is a major part of every person’s portfolio. Well, it should
be anyway! A Roth IRA is even better as there’s no need to pay taxes on the amount
you take out as long as requirements are met. For instance, you need to be 60 or
over and have owned the stock for five years minimum.


When people say “long-term”, they don’t mean leave the stocks and hope everything
turns out alright on the night. Tracking them is essential because you need to be able
to react if there is an issue. How you choose to do it is your decision alone, yet online
software is becoming very popular. With Personal Capital or Mint.com, a customer
can log in to their account anywhere in the world and manage a portfolio. In a
consumerist society, it makes life much easier particularly if you’re a novice. Creating
a spreadsheet is another option, but one which takes lots of time and effort.

How do you plan on managing a portfolio?

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