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The coronavirus has wreaked havoc on the entire world. There is barely a country remaining that hasn’t been touched by this deadly virus. The worldwide spread has certainly done its damage to healthcare and education system, our normal lives, and, most noticeably for investors, the stock market. Almost immediately, the stock market took a dive, leaving investors and 401(k) accounts everywhere devastated. So what can we learn from this?
Diversify
While many may profess that 401(k)s or other traditional retirement accounts are the best way to go, they may not be the answer for everyone. It certainly is the easier option — many employers offer this type of retirement account and it’s pretty simple to start one and invest. However, you may be missing many other lucrative investment opportunities by limiting yourself to what is offered through your employer.
Other investments to consider are private lending, real estate (more on that later), precious metals and even things like car washes. Some of these may require a larger initial investment but can often be greater in terms of return on investment than traditional stocks, bonds and mutual funds. If you’re curious about other investment avenues, I recommend checking out UnusualInvestments.com for a list of 125 different ways to invest your money. Please note that many of these I would not personally recommend investing in, but they can certainly open your eyes to the various ways to invest in your future.
Be Prepared
Although investing is always a smart choice, having funds outside of investments, or at least secured in some other fashion, is an incredibly smart choice. I would always recommend investing the bulk of your income and your net worth. However, imagine the chance that everything gets wiped clean from an unexpected turn in the stock market or another world war. You need to ensure that you have at least six months’ worth of expenses set aside. This is a wise move for anyone, even if you’re not actively investing.
Invest In Real Estate
I have said it before, and I will say it again — and not just because I own a real estate investment company: Real estate is one of the best investment vehicles that anyone can use. First, just like a stock market dip, any dip in the real estate market is temporary. It falls but rebounds and then continues to appreciate. However, in light of recent events, real estate in general has not seen a huge hiccup. Property values are still steady. Rents are still trending up.
With that being said, there will be disruptions. Property sales are going to take longer. Renters may need special arrangements to pay. The good news is that this won’t last forever. Real estate investors will still see the returns they invested in.
In addition, now is a great time to explore the idea of real estate investing. Many of us are working from home with nothing to do in our spare time. Take time now to explore it and even get started. Businesses like mine are still thriving in this economy; we are buying more properties this month than ever before.
Shift The Sails With The Wind
This may be one of the most important considerations above all others: Know when to adjust — and do it. That second part is the most crucial. Many people see the issues arising. But if you’re a business owner, how do you change your goals, your strategy, to keep thriving? If you are an investor, how do you change your mindset or find opportunities in this unprecedented environment? It’s all about shifting your sails with the winds and making the most of the situation — making calculated, educated decisions. In the end, this will help you be a winner.