“I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.” – Warren Buffett
In the 4 hour work week, Timothy Ferriss
measures financial freedom by the amount of free time that you have. Patrick Traverse
from Money Coach looks at it as the opportunity to live more and work and stress less. Other say that financial freedom is a situation in life when you have more wealth than you could ever spend. I guess it all depends from your personal point of view. However, all opinions seem to converge around a single idea – a financial plan and investment strategy are required. Let me share few resources that have helped me craft my own financial objectives and personal asset allocation for 2018.
Information today is abundant. Most of it can be also free. Internet is accessible virtually everywhere and to everyone. Finding the right information, however has become a challenge. When you think about investing my own funds, I start with finding reliable sources of information. Investment Bank and Asset Manager websites are a great place to start finding the big lines about your personal portfolio construction and allocation. Reputable news agencies like Bloomberg or Reuters will help in clarifying where your next investment can potentially be. Having consulted market expectations, relevant news publications a logical next stop can be identifying what is most appealing to you. Once you know what you like a particular investment idea, start learning more about. Here sky is the limit. Remember investing is not easy as it seems. It requires time and effort. Most common advise I have found works for me is not do things I do not understand.
My choices for 2018
I am not a financial advisor. And the following personal picks are not a financial advise. This is a simple list of ideas I believe have greater value than others.
Blockchain, virtual assistants, augmented reality video games, driverless cars are different but yet common as they are all emerging technologies that will surely shape the future. Investing in the sector is probably the most accessible to retail investors. ICOs, to websites like kickstarter, technology stocks or ETFs are all widely available.
is scientifically proven. Governments across the world are encouraging investments
in clean energy. There are a number of emerging technologies
that make renewable energy more financially affordable. Developing countries are in constant need of more power generation facilities. Respecting and protecting the environment is one of my core values, hence investing in this sector is important for me. There are a number of investment vehicles that make investing in the sector available to retail investors.
Interest rates are set to remain at historical low in Europe in 2018. Cheap mortgage rates, abundant bank financing and low down payment requirements are likely to drive the market. The sector is also easily accessible to retail investors – there are variety of REITS as well direct investment opportunities.
There is enough freely available information to start spotting investment opportunities. Investing requires both a strategy and a plan that one should stick to. It involves a degree of risk. Doing your homework before choosing in which sector to place your money is a key driver for success.