Investment Planning

Investing is an essential component of good financial planning. Some are more comfortable than others with investing and some just want to know more before they jump in.

Whether you are a seasoned investor or entirely new to the game, Abundance Wealth Solutions can help you make sound investing choices.

What is Investment Planning?

Simply put, investing is putting some of your money into stocks, bonds, or other opportunities with the intention of it growing more than it would in a savings account alone. This is also essential since it helps you to create wealth outside of your normal earnings.

Investment Planning is mapping out what you will be investing in with respect to the amount of money you will be investing, and your tolerance for risk. Using a well-planned investment strategy means contributing more to your retirement fund, faster. Knowing your money is doing more than sitting around in a savings account can give you the peace of mind you need to focus on a bigger picture than just finances.

The wealth that comes from good investing is only one part of the trifecta we like to emphasize: “wealth, health and happiness.”

Investment Advisor

Having an Investment Advisor is essential and can help you to potentially avoid major pitfalls and to stay atop market trends that could impact your savings. Something most people are aware of and that all advisors recommend is having a diversified portfolio. But this alone is too simple. By first evaluating your financial goals and objectives and then understanding your current financial situation, we can make better recommendations for the kinds of investing you should be taking advantage of.

We want to act as your personal CFO, your advisor, your advocate and your friend. We want more than for you to experience financial freedom, we want you to use that freedom to enhance every aspect of your life.

How To Invest

Starting with an initial consultation and a deeper understanding of your goals and current financial picture, we can help you to choose an investment strategy that best aligns.

Here are some types of investments:

Brokerage Accounts – An investment account you need to start investing in securities.

Bonds – These are fixed-income instruments representing units of corporate debt that companies issue, often as tradable assets.

Common Stocks – Also called shares, are securities that represent ownership in a corporation. They pay dividends based on corporate policy.

Mutual funds – Pooling money alongside other investors in a company that invests in securities like stocks, bonds, and short-term debt. The holdings in a mutual fund are known as its portfolio, where the investors can buy all necessary shares.

Simple IRAs – Tax-advantaged savings account instituted for specific expenses. There are various categories, including;

Government Securities – These involve all government debt issuances used to fund daily operations like infrastructure creation and military operations. They pay the invested principal at maturity and periodic interests to investors. Some examples include:

Variable Annuities – These are often contracts between an investor and an insurance company where the insurer agrees to make periodic payments at a future date. It often includes retirement plans where the insurer backs your investment in mutual funds, trusts, and stocks.

Exchange Traded Funds (ETFs) – These are baskets of securities that track an underlying index and can consist of stocks, bonds and even mutual funds. These are also considered lower-risk and a great component of a diversified portfolio.

Separately Managed Accounts (SMAs) – These are tax-efficient mutual funds and appeal to higher net-worth investors looking to save in management fees and taxes.

Alternative Investments

There are many other kinds of investments. We have extensive knowledge of investing in Hedge Funds, Private Equity, REITS, and Options. Sometimes these present viable options that can be profitable at lower risk and can help you to be even more diversified. The way these alternative options are leveraged for returns is part of the investment strategy we put together for you. Remember, there is no one-size-fits-all plan for investing. We are here to customize your strategy based on your goals and your unique circumstances.

We specialize in these alternative investments. There is ample data, white papers, and academic studies that prove that alternative investments reduce overall portfolio risk and increase overall portfolio returns, while reducing overall portfolio volatility. We utilize these strategies rather than using the cookie-cutter approach that most big firms do. Many of the strategies we use have not only outperformed the stock market, but have done so with low to no correlation to the stock market or even the economy. For example, many of these strategies were highly profitable during the dot-com crash of 2000-02 and during the Great Crash of 2008. We are one of the few advisor firms in the entire state that has this niche expertise.

Being aware of the unintended economic consequences that follow certain legislative actions gives us valuable insights into changing markets and clues about how to adjust investing strategies accordingly. We are confident in our ability to recognize and even anticipate some of these changes. We are also confident in our abilities to help our clients make the most in both times of prosperity and times of economic and civil uncertainty.

Learning from and emulating industry leaders who also think outside of the box has helped us develop strategies that work. Some of our favorites are people like Elon Musk, Carl Icahn, Ray Dalio, Steve Schwarzman, Warren Buffet and Bill Ackman. We know that innovative thinking plays a huge part in staying ahead of the curve and making money even in times of market turmoil and recession.

Ahead of The Game

Something that sets Abundance Wealth Solutions apart is our ability to look down the road for signs in market changes. We predicted the dot com crash of 2000, the housing and stock market crashes in 2008, and most recently, the economic repercussions of the COVID crisis in early 2020. Each time, our strategies and advice led our investors to avoid major pitfalls. Whereas we can’t always know what the stock market is going to do, we believe that careful observance and experience can help to navigate the uncertainties the market presents.

Part of looking ahead and part of any sound investment strategy is asset and inflation protection. Both of these factors have enormous effects on your finances. We want to help you protect your investments and plan for the effects of inflation now and into the future.

Investment As Income

Accumulating wealth is hard enough, but making that wealth generate sufficient income is what true investing is all about. You want to be comfortable and you also want to ensure that your wealth staying intact and grows. Good investing not only accomplishes that, but can generate streams of income as well.

We specialize in helping out clients to take the wealth they have accumulated through their investments and turn that into steady and sustainable income. Ideally, that income starts sooner than later, but making sure that you generate retirement income is of paramount importance.

Frequently Asked Questions

Should I be investing money?

YES, you should consider investing money to help you build wealth. Investments put your money in savings back to work to earn more money and potentially increase value and outpace inflation.

How do I start investing money?

Choose an investment based on your financial goals, income, and tolerance for risk. Financial goals can either be long-term or short-term with the latter being five years or less. For long-term financial goals like retirement, you can choose riskier investments since you have time to recover from stock market fluctuations. Short-term financial goals could involve compounding money in a high-yield saving account for better returns.

Is there risk in investing?

Yes, each investment opportunity bears some level of risk. However, some of the opportunities are riskier to invest in than others.

What are the best investments for beginners?

Beginners are often scared about the investment path, so safer investments are more appropriate. It is crucial that one understands how each investment opportunity works and the risks involved before investing in it.

What are the safest investments?

Some investment categories suffer more risk than others. Some of the safest investments include Money Market fund accounts, treasury inflation-protected securities, Government securities, and certificates of deposits (CDs).

What is the safest investment with the highest return?

A high yield savings account is the safest option with the highest return and is considered the gold investment standard.

Is it best to have an investment advisor?

Yes, an investment advisor helps you understand each security’s risks and potential rewards. Working with an expert also streamlines your investment and financial goals.