World markets are located in a period of volatility, as President Donald Trump fulfills his election mandate by re -negotiating the trade agreements of America, the end of foreign wars, American bureaucracy slimming and wasteing government spending are reduced.
That all makes the president's critics and some investors nervous. But do not believe that these doom-en-womers who predict an economic decline and worse recession.
I remain very bullish about the American economy, because there are enormous potential benefits to the Trump agenda. That said, there are also reasons to worry. Inflation ran hot in January and the Federal Reserve may not lower the interest rates as quickly as once expected.
Nobody knows what will happen tomorrow. So, make the best decisions with your money you can do today.
Here is my proven guide for navigating a volatile market, while allowing your wealth to grow, protect yourself against fraud and planning a comfortable pension.
Against chaos
One of the biggest strangers Roiling markets today is Trump's trade war. He delayed the imposition of taxes against Canada and Mexico until 4 March, while new rates against China are already in force.
In general, rates have an inflatory impact, but I believe that Trump's tasks on foreign goods-and they will all be imposed-part-part short-term measures.
I remain very bullish about the American economy, because there are enormous potential benefits to the Trump agenda.
In fact, these tariff discussions can be over within the next 60 days. But nobody can predict the future, so I place new money that I generate in investments with a low risk.
I have not sold any of my share positions, but I have not added to it either. Two weeks ago I bought 90-day Treasury accounts, which are in the short term bonds supported by the US government that will become adults in a year or less.
I will re -assess this position after about three months. But for the time being T-Bills offer a higher return (around 4.2 percent) than traditional money markets.
About 10 percent of my companies are parked in these safe accounts. The rest of my money is invested in more risky companies, but there is a way to protect yourself against unforeseen events.
My 401k gold rule
If the average American American earned $ 64,000 annually, each month invested 15 percent of their salary in a retirement account (such as a 401K or IRA if you are self -employed), then by the time they were 65 years old, they would have a nestei of $ Have 1.5 million for retirement.
In general, the money that is invested in the stock market will earn eight to 10 percent annually if the market performs over the past 200 years.
In addition, Trump has promised to keep the corporation tax rate at 21 percent (President Joe Biden had threatened to increase it to 28 percent), and that keeps me Bullish about the R&P 500 income for the coming 24 months.
But do not fall in the fall of choosing specific shares. Remember that most fund managers will find out the average annual marketing. Instead, follow the golden rule of asset management – diversification.
The old rule of thumb was to hold 50 percent shares and 50 percent relatively lower risk tires. But in the past two decades I have changed my approach. I now have 70 percent shares and 30 percent in bonds or cash.
I diversify my interests even further by keeping collections of shares called ETFs or exchange trade funds. Some ETFs follow full market indexes such as the S&P 500, Nasdaq or Dow Jones.
Crypto is not crazy
Cryptocurrencies have long been seen as risky investments. And indeed, in the early days of Crypto, many investors were injured by wild swings and the dramatic collapse of November 2022 of the crypto exchange, FTX.
Crypto is certainly not for everyone. But now that governments have regulated regulatory supervision over the cryptom markets (Trump has appointed entrepreneur and tech investor David Sacks to serve as the first crypto tsar of the country), Crypto is an increasingly wiser long-term investment in the long term.
Bitcoin – in addition to Gold – is now a core ownership in my account (which makes up for 5 percent of the total).
Although Bitcoin is still fleeting, it is in limited delivery, which means that it is not influenced by inflatoid pressure such as other currencies.
The biggest question for crypto investors is which exchange to save and manage their crypto. I use Wonderfi, for which I am a strategic investor. I also use Coinbase, which now has to follow US government recruitment, anti-money laundering and consumer protection laws and provides tax receipts.
However, Savvy entrepreneurs are always looking for fraud. And that is a vigilance that must be applied to all your tax matters.
Receive two credit cards
Everyone has to hold two credit cards. One card should only be used for online purchases and it must have a relatively low loan limit – say $ 2,500.
The reason for this is simple.
Online shopping is inherently risky and there is a good chance that a cyber thief will try to steal your credit card during your life and to raise large accounts on your account. However, you can control your potential exposure to theft with a credit limit.
Use the second card for all other purchases and build up your creditworthiness. This card must have a higher credit limit, say $ 5,000.
Bring at least $ 50 on the map every month and make sure you pay it complete Every wage period without exception.
The credit agencies use algorithms to determine credit scores and the only thing they care about is whether you pay off your balance. The amount you spend is not relevant.
It is crucial to determine a good credit score, because that assessment will determine the conditions of the loans that banks want to offer.
If you have a high credit score, financial institutions will see you as a responsible borrower who earns a relatively low interest rate. Borrowers with poor credit scores are considered risky – and compensate for money lenders that risk by charging higher rates.
Learn this lesson to your friends and family. They will thank you for that. And if there is an important others in your life, there is another rule to keep to.
Nobody knows what will happen tomorrow. So, make the best decisions with your money you can do today.
Say 'I do' against a prenup
The reality is that financial stress, not unfaithful, is the main reason why marriages fail.
No, this is not romantic advice, but it is necessary. And even if you don't get married and instead live together, you sign a prenup!
Marital conditions forces each person in a relationship to disclose their assets, assets and obligations. It is essential to know how your future spouse or partner deals with money. And if your romantic interest is not willing to talk about their financial past, that is a huge red flag.
A prenup effectively removes tax fear from the stressors on a relationship. And in the event that the trade union fails, you do not run any risk of losing your hard -earned money, because the agreement determines how the assets are distributed in the event of a split.
The marriage does not mean that you have to sacrifice personal sovereignty.
In fact, you must also retain individual credit cards and bank accounts. Couples can determine joint accounts for daily expenses – but not completely leave your financial independence.
When it comes to family, money can strengthen or destroy bonds.
Be on your guard when it comes to in-laws.
Never loan your family
I was lucky in my life and as a result, family members came to me to ask loans for their investments and business companies.
But of course there is no such thing as a certain bet and eight out of the 10 start-ups fail. What happens if they cannot repay the money they borrowed? I never want to be placed in that situation, which can cause a relationship in a relationship.
So my unbreakable rule is never to borrow money to the family. Instead, with the understanding of the recipient, I am having to refrain from their money to ask me again by taking my money.
If you follow this proven advice, you will probably retire comfortably and avoid the pitfalls that can derail your financial security.
