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
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
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
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.
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#1 Investment Plan to Start NOW to Retire EARLY With LOW Risk By NextStepInvest
