1 Investment Plan to Start NOW to Retire EARLY With LOW Risk

Do you want to know how to invest so you can build wealth achieve financial freedom with a passive income and retire early without risk? Well with the smart investment plan that I am going to teach you today, you will be able to achieve financial independence and retire early. The smart investing plan is of course, with stocks. You might be saying, but stocks are so risky! Well, today I will go through the risks with the stock market and how, with my investment plan you can mitigate those risks and retire early with no fear.

However, with the smart investment plan that i  am going to teach you today, you can mitigate   but the least risky strategy for investing   time is money and i don’t plan on  wasting yours so lets get into it.  about when investing in the stock market   but this isn’t true. you might be  while investing and gambling have

The same  principle, taking some capital, taking some   however, the biggest difference is that   you lose all your money. investing in the stock   for example, if you invest in a stock and the  price of that stock slowly goes down over time.  for example if the stock price drops down 20%   another big point of difference

Is that  investors have more information than gamblers do.  including different standardised ratios  i’ve spoken about these before in other video last and most importantly over time, the odds   however, it would be naïve to say  but what if i told you there was a way  which, with the right investment plan can help you  

See also  Is Google Stock a Buy Right Now?

But first lets begin by breaking  single-asset risk and market risks. this will help you understand the risk profile   of individual stock picking and diversification  so you can make the right investment decision.  this is because you putting all of your money  if your company goes bankrupt your  money is goneskies. this is probably

The   when you invest in stocks you’re  owning a part of a company,  if you invest in thousands of large companies  in dozens of different countries you can almost   because all of the companies in the world  won’t ever go bankrupt. the world needs these   companies so you can get your basic essentials  like milk,

Electricity, computers, cars,   the stock market is always going up  stories of people losing 50% of all their money. and you’re right, with a diversified portfolio of   but don’t worry i’m going to explain this  on average every year it is normal for the  stock market to decline around 5% at some point.  on average every

10-20 years, it  decline around 30-50% at some point. because you’re taking a little bit of risk  what’s really important here is  shares when it starts declining. the stock market has returned a   but you need to earn that return, and you do that  by not panic-selling when the media tells you   that’s because the market will

Recover at  some point. and the more globally diverse your   against shocks in the economy. this is because the whole word   cannot collapse and often different countries  have different experiences to economic shocks  this is why when you invest in the stock market  you have to be emotionally and financially   you should

See also  What Is At-Risk Investment? - Plan Friday

Only invest money that you are happy   freakish events when the market drops 50% you can leave your money aside so it can recover.  now you’re probably thinking, how am i supposed  to know if i can leave the money invested for   and all of those are all genuine concerns,  if you’re investing in the stock  should be to create a

Passive investment vehicle and you should never withdraw your entire stock   portfolio at one given time. you can however,  withdraw around 3-5% of your total portfolio   this means that if the stock market falls,   you would only ever need to access a small portion  of your assets. you can leave most of your assets   now

If you’re worried and you still think this   diversification into bonds to minimise your risk even further you should   and by this i mean putting your money into bonds   this would allow your stocks to  recover while you draw on the bonds.  i am going to tell you that stress free investing  plan so you can retire early with

The lowest risk.  possible we are going invest in thousands of   of our portfolio. then we are going to have 40%  of our portfolio in really safe assets like bonds.  portfolio and adjust the amount each year in   rise as they have done historically. when they do, we can withdraw from that portfolio  when the stock market eventually

Decreases  in value due to the nature of the market,   we’re not going to panic sell. because we are  financially and emotionally prepared for this.  section from the portfolio to allow your stocks  to recover and continually invest themselves.  you should be able survive for about 10 years.  as we have spoken about today, market

See also  Mojo on the floor of the NY Stock Exchange | Who would you invest in first?

Drops happen  every 5-7 years but after 7 years they recover.  this should be a perfect risk mitigation  strategy to allow for your stocks to recover.  so from todays video you should have learnt that   picking individual stocks have  a higher risk to higher reward.  adding broader diversification into bonds  doing all of those

Together is the safest way  but of course, investing is up  to you. and you have to decide   individual stocks and some in etfs. that’s because while i’m younger i want to   but i definitely plan on doing so when i’m older. if you want to learn more about passive investing   so you don’t have to worry about investing into 

I’ve also spoken about dollar cost  helps you reduce your risk and your reward. i plan on making videos in how i pick stocks.  as always, make sure you do your own research  as i’m not a financial advisor. this is just   as always next step, invest into your investment   here or here or here and i’ll see you again soon.

Transcribed from video
#1 Investment Plan to Start NOW to Retire EARLY With LOW Risk By NextStepInvest