Expertise is not as revered as it once was. From scientists to historians, a large percentage of society has become distrustful of these experts.
However, experts can be beneficial for those who choose to listen to them. No one wants to be the first person to get on a plane designed by a chef.
Personal finance is another of the areas in life in which it can pay off to listen to experts. Investing is a team sport, and you’ll want to have experts on your team.
Investing On Your Own
Before we dive into building an investment team, you can definitely invest on your own – if you’re comfortable with it.
One piece of advice that can benefit many Americans is the recommendation to purchase index funds. The Oracle of Omaha, Warren Buffett, told investors that purchasing a simple S&P 500 index fund is the best strategy for the vast majority of people.
Investing in index funds can be a great option for those who want to execute a do-it-yourself plan when it comes to investing.
This strategy can pay off with 10% returns on a regular basis. Some years will have higher growth; other years will have lower returns.
However, on average, the American stock market has returned an average of 10% over the long run.
While this strategy can build wealth over a period of decades, it’s not likely to give market-beating returns because you’re effectively investing in the market as a whole.
Amass A Team For More Investment Opportunities
Your financial team should have experts to help you beat the market.
You’re not guaranteed to achieve otherworldly returns, but experts can give you the scoop on some investments that are not available to the general public.
Hire An Accountant
An accountant should be one important member of your financial team. The right accountant can help you navigate a complex tax code and file your returns. She can also give you advice that can help you minimize your taxes in the short run and the long run.
Accountants can at times provide a good idea of how business financial reports function, and this can help you better navigate the world of investing.
Talk With A Financial Planner
A financial planner provides a more holistic service than many financial advisors. Some financial advisors tend to serve primarily as brokers. For this reason, you’ll probably want to look for a planner who serves as a fiduciary agent. This means that the advisor or planner will act in your best interest.
Those who do not serve as fiduciaries can use a suitability standard and recommend investments that are “suitable” for someone in your situation. What might be suitable for you might not be the best strategy for your individual circumstances.
An advisor who holds to a fiduciary standard will attempt to act in your best interest whether he or she gets a hefty commission. Many fiduciaries are fee-based advisors who charge a flat fee for their advice, and this alleviates the concern over commissions that some funds pay out.
A financial planner will also give taxation and long-term planning advice. This can involve recommendations for life insurance to protect your family’s financial standing should you or your spouse die early.
Additionally, financial planners will recommend retirement accounts that might work for your specific situation. Long-term care insurance can also make sense for many people. A financial planner can also give insight into estate planning so that your heirs are able to keep more of your accumulated wealth and so that less of it goes to the government.
While you can definitely cherry pick different individuals to invest with, perhaps the better opportunity is to invest with a team that provides various investment opportunities for you.
Investing Is A Team Sport – Be Part of an Investment Group
Involving yourself with these experts can help you improve your financial health over the long run. It can be a good idea to get started with some index funds if you’re beginning your investing journey, but if you want to move past this initial stage and really plan for the future, you’ll want to team up with other investors or companies that provide investment opportunities.
Peter Thiel is perhaps best known as the founder of PayPal. He’s also gained some notoriety recently for amassing a $5 billion fortune in his Roth IRA.
He bought shares of PayPal for pennies and then watched them grow for years. Because he stayed within the contribution limit for a Roth account, he can withdraw his billions on a tax-free basis.
You can’t buy PayPal for pennies a share today, but you can learn about cutting-edge investments if you’ve surrounded yourself with an investment team like Urban Capital Network that keeps up with great opportunities.
Interacting with a team like Urban Capital Network can allow you to ask questions that will help you make educated decisions. Not all of your choices will pay off like Thiel’s Roth IRA investment, but a few strategic small investments can wind up paying off in huge sums over time.
Surrounding yourself with a team that can make good recommendations will increase your likelihood of finding an investment that will pay off handsomely over the long run.
Many of the best investments are not even on the public markets.
That’s why you should want to be part of a group like Urban Capital Network so that you can surround yourself with a team of people who have knowledge of the pre-IPO market.
If you’re looking to work with a team that will help you achieve your goals and provide you with salient investing advice, be sure to contact us. We’re ready to work with you.