Investments so simple, anyone can create wealth.
A guide to breaking the wealth crises by investing in smart portfolios. Defy the constant pressure to build and destroy wealth for the ‘gram.
Globally, there is relentless pressure building on money management and building wealth. Instagram’s constant bombardment of Louis Vuitton, Gucci, Luxe holidays and Michelin Star meals is creating an emotional drain by forcing a choice between fitting in and building a future.
The crises of wealth facing young people has seen the rise of Exchange Traded Funds (ETFs), Robo-Advisors, fractional investment apps like Acorns and so many options that choice paralysis and misconceptions, mean most of us never invest. Let’s change that.
Amplifying the wealth crises are inequality, and the gap of opportunity between current generations and the past. Housing as a multiple of income has continually skyrocketed as homes have become less and less affordable. Opportunities to get into markets and build wealth are harder to come by for young people today than they were for their parents. Let’s change that too.
This article has no promises of overnight success or being a millionaire in 10 years or any of those hyped up stories you see on social media. What it does promise; is a guide to investing in companies that you believe in, and a simple way to grow wealth.
Two quick steps before launching into the smart portfolios and their performance. These are two crucial elements to building wealth and when they combine with budgeting then a fortune could be hard to avoid.
A snowball starts to roll. As it rolls it gets bigger and bigger, each turn it picks up a bit more snow and a bit more pace. Soon its rocketing down the hill, getting bigger and bigger, going faster and faster, until eventually it’s as big as a boulder; a that is compounding. The continual growth of money as it builds on itself.
With a little bit of money and as much time as possible, compounding becomes the 8th wonder of the world. It can turn a small amount of savings into a house. With investing, it’s important that you give it time. Allow for the ups and downs of markets, ride it out, give it time and let the money compound. Investing is not for the short term. One day a company stock might go up 10% and the very next day it goes down 8%. Invest for the long term and continually build that wealth, while ignoring the short term noise.
A project I am working on is called the Portfolio Exchange or Portfolio X for short. It will eventually become a platform designed to help people get into markets and build wealth. Part of building the platform has been a significant amount of research into portfolio’s and portfolio construction.
A good portfolio should provide access to a diversified range of companies so that risk is mitigated as best as possible and returns are still maximised. Porfolio X has taken that approach, and then built portfolios based on what people believe in.
The portfolios have been constructed by mostly using ETFs that provide exposure to a high number of companies across the globe. This mitigates the risks of investing in single entities and single markets, while still providing access to key themes. The risk of a single company is that they go bankrupt then you’ll lose all of your money, but if you’re invested across multiple companies then you’ll only lose the portion of money that went to the bad egg.
We’ve built portfolios that are easy to understand. Targeted themes so people can support companies that the actually want to support. Believe in a greener future then buy into the Ethical Portfolio, think that technology or agriculture are where future is at, then buy into the Technology or Agriculture Portfolios. These portfolios could help build deposits for housings, amass wealth, and make the market accessible to everyone.
The project is to eventually make enable people to invest these portfolios for as little as $50 or maybe less. Personally, I believe in financial literacy for all, companies owned by the public not private money, wealth to be spread amongst everyone and as many people to live their best possible lives.
So here’s a snapshot of the Portfolio Exchange and a smarter way of investing. Hopefully these portfolios will inspire you to start investing or at the very least demonstrate how you can invest and build wealth.
It’s obvious that even medium term investing can pay off and build significant wealth. The best time to plant a tree was 20 years ago, the next best time is now. This famous proverb can be said about investing. The sooner you start the better and it doesn’t matter how much or how little you start with, as long as you start.
If you’d like to help this project provide millions of people with access to wealth then it’d be really great to complete this 10 question survey.
f you have any questions then please feel free to comment, and if there is anything you’d like to see analysis on or read about in the future then let me know.
Also, please note that this article does not represent financial advice, or the views of any organisation; it is only the opinion and analysis of the writer.
Thank you for reading.