Paper assets have no intrinsic value on their own. However they are means of creating, storing, controlling, and exchanging enormous wealth. It is what most investors use to create wealth in Investor quadrants. An excellent example is Warren Buffet who is known as one of the most successful paper assets investors the world has ever known. You don’t have to be Warren Buffett before you can succeed in paper assets, you can always start small.
The reason for this session is to encourage those who want to start creating wealth using this asset class to get started
The first question to answer is how can paper assets help you create wealth? There are many ways through which this can be done, but I will focus on five today.
One, with Paper assets you can start with very minimal amounts even hundred dollars and you can buy stocks or any paper assets that interest you after your due diligence and grow your portfolio. That is one of the very many beauties of paper assets.
Two, the paper assets can appreciate, and grow to give you capital gain.
Three, the paper assets, can help you to participate in larger investments in a small way and this can give you dividends which is a share of the profit.
Four, they can create passive income for you which is cash flow, from your investment
And lastly, they can help you build wealth that can outlast you and be passed on to the next generation. Recently someone I know was called by a stock broker and was notified that his father had nominated him as a beneficiary in the fathers stock investments. This was done by his father a long time ago, and he was not even aware. Fortunately for him, these shares had grown substantially in value and the father had passed away, but he got a windfall. You and I can also leave inheritance for our children through paper assets
There are great ideas about how you can create wealth through paper assets and there are so many paper assets out there. Some of them include stocks, bonds, treasury bills and commercial papers, promissory notes, arms length private mortgage, mutual funds and the list goes on and on
There are four ideas I like to share on how to create wealth through paper assets
One, familiarize yourself with the Paper assets out there in the market and do your research on which ones you like to invest in. In the school of wealth if you put your money in something you do not really understand you are simply gambling.
Two , Assess the volatility, and the risk of each of the paper assets.
Three, understand the pros and cons of each of the paper assets that you choose, and that can fit into your risk profile tolerance
Four , get a good mentor, who has succeeded in using paper assets to build wealth and who can also answer your questions and go along with you on the journey
Five, get a trusted broker, who is well experienced. It takes time to get one, but when you get one he can really make you wealthy.
This session is not just to spark some ideas on how you can create wealth through paper assets .
My goal is also to provide some tips on how we can get started. There are numerous tips, but I will focus on about three.
One , you can follow up on what you have learned in this article and research on the top 10 paper assets and select the ones you think can fit into your investment goal
Two, you can identify different organizations and institutions that offer them . You can also research on the different platforms through which you can buy and sell your paper assets . Some of the renowned ones in Canada include wealth simple and questrade
Three, you can get a referral from your team members. You may need a trusted stock broker or financial advisor who can guide you on how to start. However, in selecting a stockbroker, you need to be extremely careful because a number of them are sales people who want to make a commission by getting you to buy stocks that may not be in your best interest. For example, a day before Exxon Mobil went bankrupt the stock was still listed by a number of stock brokers as one of the best stocks to buy.
It is much easier to save than to invest. Many people do not understand the difference . Paper asset is a way to convert your savings into investments, and it is one of the ways to make your money work for you
As I conclude , I have shared with us ideas sparklers that can help us create wealth through paper assets and different ways, through which paper assets can create wealth . I also shared with us some of the tips on how one can get started.
