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Becoming a millionaire is a dream, and one that’s within reach even for those who weren’t born into wealth. According to The Ascent, approximately 8.8% of Americans are millionaires. The majority of these people are self-made.
While each path is different, many self-made millionaires invest strategically over the long term. But what exactly are these people investing in, and what are their plans for the rest of this year and beyond?
GOBankingRates spoke to two self-made billionaires, Tim Hastings and Paul Gabriel, about their investment strategies for the rest of the year. Here are the top investments they plan to make in the second half of 2024:
real estate
Paul Gabrail is a self-made millionaire and disciplined investor who uses value investing as a wealth creation strategy. He is also the founder and host of “Everything Money,” a digital show dedicated to educating audiences on smart investing and all things money.
Gabrail plans to expand his real estate investment portfolio later this year with the purchase of two lakefront homes to be used as rental properties, as well as a 200-unit apartment complex in Louisville, Kentucky.
When asked why he chose real estate as part of his investment strategy, he said it’s all about what you can afford and how much you can pay in rent. It’s also important for him to find a good deal for each property he buys that others don’t see value in, typically because the rents are too low. While others might pass on these properties, he said he sees them as an opportunity.
stock
Historically, the stock market has generally trended upwards. Of course there are fluctuations and not all stocks are valued equally, but the stock market is still part of Gabriel’s investment strategy this year and likely for years to come. After all, investing in the stock market is a marathon, not a sprint.
Gabrail said he plans to continue investing in stocks even if share prices fall. Nike, Alibaba and Sprouts Farmers Market are among his top picks right now. As part of his overall strategy, he said he likes stocks that are out of favor or have temporary problems but have staying power.
Gabrail said he chose stocks because, like real estate, they offer the potential for future cash flows, and that he expects higher than normal market returns, making them a good investment opportunity.
Gabrail said that unlike other investors, he doesn’t make investment choices based on personal feelings, whether it’s in stocks or real estate.
“I’m location agnostic in real estate and industry agnostic in stocks,” he said. “Most people invest in the companies they like and the properties they like. That’s the best way to fail at investing.”
Commodities such as gold and silver
A big part of a successful investment strategy is diversifying your portfolio, as many financial experts will tell you, but it’s also about adapting to ever-changing circumstances and being diligent and spending wisely.
“There’s just too much going on in today’s economy to justify the key to becoming a self-made millionaire and staying relevant, other than jumping in and getting a head start when everyone else is panicking or too skeptical of the trading market’s potential. [much] “Uncertainty means spending less than you earn and investing more than you splurge (especially on non-essentials),” says Tim Hastings, general manager of Top Rated Law in Texas and an active investor.
As for what he’s investing in, he’s doing a few things.
“Aside from focusing on index funds and dividend stocks, another investment I am seriously considering for the second half of the year is gold,” he said. “My research has shown that investing in gold is just as profitable as investing in the real estate market. By investing in commodities such as gold and silver, you will be protecting your capital from deflation and putting yourself in a situation where inflation will work in your favour, rather than against you.”
Generally speaking, gold maintains its value even during periods of high inflation. Given the volatility of certain other investments, such as stocks, this can be a smart way to mitigate risk. However, it is not the only option to mitigate risk and maximize returns, but it can be a good addition to an already diversified portfolio.
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