Kudos! You’ve committed your life to hard work, and it’s evident in the growth of your savings. Gradually, you might notice a shift in priorities—from wealth acquisition to strategies ensuring that you don’t lose your hard-earned money.
Consider the following steps. The best part? They need just about as much time as it takes to read them.
- Seek a fresh perspective
You’re no stranger to money-making; otherwise, you wouldn’t be here.
However, situations arise when a second viewpoint is necessary. Yes, you’ve successfully built and managed your savings, but greater wealth demands more attention and increases the consequences of any missteps.
In a study by Vanguard, an investment firm, a hypothetical self-managed investment of $500,000 over 25 years would grow to $1.7 million if managed independently—double this ($3.4 million) if handled professionally.
There are no guarantees that professionals will outperform you, yet getting a second opinion can’t hurt. Even if you don’t need help with investment choices, they can assist with plan creation, maximizing Social Security benefits, protecting assets, and providing reassurance about being on the right track.
In today’s digital world, finding professional financial advisers is easy and often free. For instance, SmartAsset matches you with up to three local fiduciary financial advisers after you fill out a brief questionnaire.
The process is quick, and you might even get a free consultation.
Why not try it out? You have nothing to lose and potentially lots to gain.
(Please carefully review the methodologies employed in the Vanguard white paper, “Putting a Value on your Value: Quantifying Vanguard Advisor’s Alpha.”)
- Diversify your investments
With a significant portion of your savings invested in the stock market—as it should be—you’re well aware of its volatility.
While you can’t control the stock market or global economy, diversifying your wealth can shield you from uncertainty.
Gold has long been a popular hedge against various risks, ranging from inflation and currency devaluation to political instability. However, experts recommend allocating only about 10% of your portfolio to gold.
Make sure to deal with reliable businesses in the gold industry. Goldco is one such company, offering services like precious metal IRAs and direct purchases of precious metal coins and bars.
Browse their offerings if you’re considering investing in gold. They even provide a free information kit for prospective clients.
- Ensure adequate insurance coverage
Accidents happen—that’s why insurance exists.
Once you’ve accumulated wealth, it’s important to protect it through adequate insurance coverage, especially liability insurance.
Also, periodically shop around to ensure you’re not overpaying. Insurance comparison sites like QuoteWizard make the process easy, helping you find affordable policies with adequate coverage.
Take a moment to review your insurance needs—it might save you hundreds on premiums while providing ample protection.
- Secure your family with life insurance
For your family’s sake, consider life insurance. Should something happen to you, who will cover the mortgage or tuition fees?
Life insurance isn’t for everyone, but if your family depends on you financially, it’s worth considering. Ethos offers an easy online application process, no medical exams, and term life insurance ranging from $100,000 – $2,000,000.
Get a personalized quote within five minutes by answering a few online health questions—it could be the most important step you take for your loved ones’ security.
- Guard against unexpected expenses
Your house and car systems are prone to breakdowns, which can lead to hefty repair bills.
Instead of draining your savings to cover these costs, consider protective measures like warranties. Select Home Warranty offers three levels of coverage for home appliances and systems, ensuring quick repairs or replacements when things go wrong.
Similarly, for car repairs, consider companies like Endurance which provide extended warranty plans. This coverage includes 24/7 roadside assistance plus rental car benefits while your vehicle is being repaired.
- Generate monthly income through real estate
Real estate has always been a route to prosperity, and it doesn’t necessarily require a large initial investment. For example, Fundrise allows investments starting from $10, giving you a stake in real estate properties.
This form of investment can be quite profitable, given the surges in rental rates and property values in recent years. It’s like becoming a landlord without dealing with tenant issues or maintenance—definitely worth considering.