Do you have an investment or a retirement plan? Having a retirement plan is a survival mechanic, people should learn to think about fall back plans, and rather than becoming a burden on family members you should have an investment that could help them when you are no longer active at work, aged etc. Retiring with the assurance that you have millions of money in your account is very pleasant to the soul. You get to live your dream life after long years of service and struggles.
The renowned writer Eric Rosenberg’s grandfather, a retired business school professor who put his learnings to work and retired with a portfolio balance of over $1 million. This should be of great motivation to you, he was motivated by his grandfather, who saw the importance of having a retirement plan, you can actually do the same, just follow these simple but effective tips of becoming a millionaire after years of service.
These are the 3 tips for long-term investment results you should follow.
Identify companies behind stocks for investment
Rosenberg was influenced by his grandfather; he learnt the necessity of knowing the companies behind the stocks he buys to stop him from picking stocks based on just market trends. While prices were fluctuating the company’s intrinsic value determined the value of stock, he was also influenced by his grandfather to study a company’s revenue and profit trends before buying into it.
Note that you do not need a degree in business to know this, too. In so far as you know how a particular company has been performing or how it makes profit , you can make great decisions about your investment.
Rosenberg told the story of how he came with his grandfather to the bank so he could look up stock prices and track his portfolio’s performance.
Understand Stock Value
The internet has made this task much easier these days, the thought behind it remains the same. Knowing the value of your holdings would help you make decisions about which stocks you might want to let go and which ones you need to hold onto.
This works even if you’re using the buy and hold strategy as some stocks’ performance justify selling them earlier than you planned.
You must read and follow other great investors whose businesses are already paying so you know what actions you need to take in buying stocks, what to buy and when to get them. The internet has made accessing these information very easy. you can read up some accounting information to guide your investment plan.
Do not squander investment is important for greater returns
When you invest more, more chances are that the returns are bigger in the long run, so why should anyone keep money and resources without investing them, knowing that something huge may come back as returns.
Rosenberg’s grandfather was aware of this and made it a mission to spend every penny well. He had enough money to squander but he chose to make more money with money. The thing about money is that once you stop investing and spending there will be a time when you will have to start from the scratch. So you have to be resourceful always, build an empire of wealth, long lasting wealth.
Rosenberg was encouraged by his grandfather to do the same by giving him an accounting ledger book when he was eight years old. With the notebook, he taught him how to keep track of the money he made and spent, a lesson Rosenberg found handy when he started building his empire, too.
We are not all happy to have a grandfather like his or father, mother or any family relation to guide us to be finance-savvy but we can jump on this piece and learn from them also get investing lessons from Rosenberg’s grandfather and become a millionaire in the future.
Retirement is a thing for everyone, everyone must retire but how do you retire, what story would you tell, what impact can you make, what do you fall back to, these are key questions you must answer. find new means of investing, do not spend money without an assurance of a fall back plan.
