Invest in What You Understand

The majority of people probably do not understand what they are investing in or maybe they are not investing in anything. Some people may gamble invest, while others may take a more secured route. There are countless things an individual can invest in, and it is up to you to decide what is right for you. People may be investing in a 401k or an IRA and not even understand what their money is doing for them. I will break down some of the things I invest in, why I choose to invest in those, and why more people should pay attention to what they invest in.

The number one thing I invest in is myself! I know the more I learn about a topic, the better informed I can be to make the correct decision. I also know, I will work very hard to accomplish whatever it is I am working towards. So, I invested in myself when I got my college education (turned out to not be the most productive thing to do with my time and money, but we live and learn). While I was in school I took a job working construction, this allowed me to learn a skill. I took a pay cut to work this job, but looking back, it was one of my best life decisions. I have continued this theme, by investing in myself to start Stable Living with my partner Ryan. We have grown the company from nothing in 2017, to 4 Adult Family Homes, working on licensing the 5th, and caring for over 25 clients. We invested our time and money into ourselves and it has paid off tremendously. We are now starting a flipping business for real estate. It is another area, I feel we will be very successful because we take the time to continuously learn more about it.

I always choose to invest in myself first, everything else comes secondary. The next thing I invest in, is real estate. I will purchase real estate and make it cash flowing. It takes work up front, but once it is complete, you have an asset you took that was under value and brought it up to a higher value. This allows you to have a well leveraged, cash flowing asset. I am big on real estate because it gives you passive income, which can make you financially free and give you a monthly paycheck.

Next, I invest in stocks and crypto currencies. I do this in Robinhood or Webull, I understand I will be taxed on these gains as income and I am okay with that because I research what I am investing in, to try and have a return that is worth paying income tax on. I do this so I can access the money easier, be in control of my investing down to the individual currency or stock. This is more of a side investment and not my long term.

Lastly, I have, but do not currently invest in, a Roth IRA. I will invest in IRA’s again someday, however, it is not a priority of mine right now. One thing I do play around with, is changing the funds I am investing in, with my current IRA. With Covid this year, I switched my fund and realized a 30% return this past year, while that other fund has realized a 6-7% return. By researching the type of fund you have your money in, you can really make a change in the type of return you get. I highly recommend doing this for anyone who has a 401k, IRA, etc.

These are my main categories of investing. At my age, with my ambition level, I know I can receive a higher return on my investment by investing in myself. As I age, I will continue to diversify and get into more investments such as IRA’s. I have success in all 4 categories I invest in because I research each category. I would not realize the type of gains I have received if I do not do consistent research on those topics.

If you do not know what you are investing in, you are not investing, you are gambling. Learn where you are putting your money and how to make it receive the best return for the amount of risk you are willing to take.

Your life Tutor

-Shaun Tutor

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