by Stacy Francis, CFP®, CDFA
I read in the paper today that the average American now works 46 hours per week. For people who hold managerial positions, are self-employed, or work on commission, the number can be significantly higher. When you spend that much time and effort making money, of course the last thing you want is to see it your hard-earned dollars just sitting in your account, losing value as inflation eats away at them. But how do you go for the sweet returns without risking to lose it all?
Here are just some ideas.
1. Don’t buy overpriced securities. I am not saying all cheap stocks and funds are bargains, but don’t buy into something that has climbed double or triple digits over the past year just because everyone else does. Look at the fundamentals and compare with the price – or have someone do it for you.
2. Do you believe hybrid cars are the future, while Fords are so over? Invest accordingly. Don’t buy companies you believe are “over the hill”, but look instead to the industries you (or your advisor) expect will do well in the future. Then, find the best companies within those industries.
3. Consider buying into perpetual income, meaning situations where you can make money from an initial investment for a long time – best-case scenario forever. Some industries where this has been known to happen are forestry, pipelines, ports, hydropower, and geothermal energy.
No matter the market conditions, if you are a creative investor (or working with a creative advisor), there will always be opportunities to make good money.