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Your financial plan is to provide you with financial security and financial independence. You will achieve that with regular contributions to your plan and by choosing good long-term investments.
There is a wide range of good growth investments, including U.S. stocks, international stocks, commercial real estate, residential real estate, both single family homes and apartment and condo complexes, and commodities. There are also mutual funds and various investment trusts that invest in all of these.
Good long-term investments have traditionally averaged 10% to 12% per year; therefore, your investment portfolio should average 10% to 12% per year or more. If you are a good stock picker, good for you. If you are not, then invest in good mutual funds that average 10% to 12% a year or more. There are over 100 of them.
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Dividends paid out and long- or short-term capital gains paid out in growth investment accounts are taxable. Good growth investments in your IRA, 401-K or other qualified retirement plans are tax-deferred so that is an excellent place for high growth investments. Try to contribute the maximum you are allowed in your retirement plans. This may qualify you to receive any company-matching contributions and it saves taxes and improves your retirement.
Real estate is an excellent long-term growth investment. It can provide income, tax benefits and excellent growth. If you own rental property, a house or a small office, you can probably raise the rent every year or two and thus increase your income and your financial security.
Peterson Money Books
Book: RICH By Choice, by Erlend Peterson, CFP
A Complete Guide to Your Financial Success
money changes everything | rich by choice | challenge of wealth
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