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A potential recession is on the horizon for America and the world at large. There are two lenses through which you can examine the situation: You can fear the unknown and find a way to survive a recession, or you can seize the moment and set yourself up in preparation to take a bigger market share and thrive in it.
Warren Buffett’s famous quote rings louder than ever today: “A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful.”
Even if you know that now is the time to gear up, the hardest part is knowing what to do. You know you need to invest, but in a volatile market, it seems like you can’t gain any traction in building real wealth that can change your life.
That’s the gap between elite and everyday investors. The elite have a secret playbook that they go by to build their massive wealth. They tell you to trust the market, and they let their inner circle keep the good stuff to themselves.
If you want to break into the next level of investing, there are three essential strategies you must deploy on your investments and portfolio right now to unlock your money’s true potential. You can start two of these strategies as soon as you finish reading this.
1. Create Passive Income and Accelerate Your Money Cycles
The first part is pretty straightforward: You must find a way to create passive income for yourself.
Passive income is the ability to make money without putting in effort to generate that income. Your money needs to make more money for you. Passive income is essential to creating financial freedom, and you will have difficulty achieving financial freedom without it.
Everybody knows this, and that’s why everyone is inclined to invest in the market and watch it grow. But that’s not enough. If you want to create financial freedom, you must accelerate how fast your money cycles through these investments.
What does this mean? A money cycle completes when you invest, and you get your return after a particular time. It could be months, years, or weeks, depending on the investment. The key to maximizing your money cycles is completing them faster and deploying more capital each time to create more compounding revenue.
For example, you are a real estate investor and buy a house for $100,000. You flip the house for $200,000 after one year. That’s one money cycle, and you doubled your return in 12 months.
Now, you can deploy $200,000 on the next house that can get a similar return in a similar time frame.
Now imagine doing that in multiple cycles simultaneously and rolling them over in their various cycles, creating more and more revenue every few months. The more capital available, the more cycles available for you to deploy. When the cycles start moving faster, and there’s more of them working for you, there’s a lot of cash at your discretion.
This can happen in the stock market, but as we’ll discuss, there’s a better way. Other types of investments and strategies that are available to you right now are rooted in creating and accelerating money cycles, yet no one talks about them. That’s the part the ultra-wealthy conveniently leave out whenever they provide investment advice.
2. Tax Efficiency: A Non-negotiable for Preserving Wealth
Tax efficiency is the most critical aspect in building wealth, and it is the most overlooked aspect for those building their wealth for the first time without prior knowledge. As the great Benjamin Franklin said, “A penny saved is a penny earned.”
It will be (or maybe it already has, as in my case) a huge slap in the face by reality when you finally make that big check—and Uncle Sam took more than his healthy cut from your hard-earned money.
You need to protect your money from unnecessary and preventable taxes. It’s a non-negotiable strategy for building and preserving your long-term wealth and well-being.
But how do you do it? The ultra-wealthy have an advantage: Thanks to their teams of high-end bookers and tax planners, they don’t have to think twice about how to move their money to protect it. You should do the same thing they do: Listen to the experts and insiders who can point you in the right direction.
3. Insider Access and Community Building
It takes a village to raise your net worth and your investments. You can only get so far by doing it on your own. There are too many bases to cover, and something will slip through the cracks. That’s OK. The elite employs a team of experts, planners, and capital raisers to move, protect, and deploy their capital daily.
Find some experts you can position yourself behind to help you grow your wealth. Whether it’s working on proficient tax plans, finding new investment vehicles, or partnering on certain investment opportunities, doing it with others that you trust not only makes it a little bit easier for you to protect your wealth but can give you access to investments you didn’t even know were possible for you.
Where do you look for these kinds of experts you can trust? The answer is not as far from you as you may think.
Finding Something to Stand Behind to Build Together and Unlock Your Potential
The elites are preparing to move the market, and there is one method high-worth investors are utilizing now more than ever. Alternative investments are already gaining momentum in the market, and they’re poised to revolutionize the financial landscape entirely within the next few years.
High-worth individuals are moving their money away from the volatile stock market to preserve their wealth. They allocate more than 50% of their investments into alternative investment vehicles, according to this report by The Motley Fool.
Alternative investments are rapidly growing, reaching $13 trillion in assets in 2021 and doubling since 2015. The space will continue to grow, as Preqin suggests the alternative investment space can hit $23 trillion by 2027.
But how do you gain access to such vehicles? They seem as if they’re highly protected and require specific stipulations to access these vehicles, but that’s not true.
All you need is experts to show you the way. Invest Wealth Summit is your ticket to these alternative investment vehicles and exclusive wealth-building strategies. Experts and thought leaders nationwide are taking the stage to help everyday American investors not only unlock their wealth-building abilities but also lead them to exclusive investment opportunities you will not find anywhere else.
This year, Tucker Carlson, Buck Sexton, Tudor Dixon, and Lisa Boothe will join my partner Amy Vaughn and me for this epic, jam-packed three-day event. We will discuss all the principles we outlined in this article, as well as the trajectory of our country over the next 12 to 15 months. Discover how to prepare, anticipate, and dominate the market when the time comes.
Tickets are selling out. Save your spot today here and learn more about America’s greatest investment event of the year.
Invest Wealth Summit
An exclusive platform providing valuable insights, resources, and deals for investors looking to enhance their understanding. Done-For-You real estate partnerships and joint venture opportunities in the hottest real estate markets in the country.
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Note By BiggerPockets: These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.