w to Invest Money in 2024
Start investing by giving your money a goal, saving for education, building wealth, that dream car … for golden years … passive income. For Freedom!
How we invest … is how we live tomorrow!
Freedom is a journey not a destination. It is personal freedom, and it is financial freedom and in our accelerated topsy turvy world, a moving target.
Personal: Quality of Life, security & peace to enjoy family, friends, and lifestyle before and after the “golden years.”
Financial: All the wealth, assets & cash is only meaningful If there is passive income separated from politics, the economy and investment markets; especially relevant in emerging countries. For income, it should be income streams in the 3 primary world currencies £ : $ : €.
Why? Simply to ensure the long-term purchasing power of your passive income. In the golden years, a hard task if you are incorrectly structured!
How we invest … is how we live tomorrow
If you are saving and building wealth for the golden years … with longevity enhanced by healthy lifestyle choices and medical tech advances … the 100-year life can be a gift or a curse. There is no time to waste …
The Quality Group view is that investments should tick the box √ on your journey to freedom. Avoid volatility & turmoil, seek investments that …
Display characteristics like …
○ steady and consistent returns
○ with returns that are above average
○ with minimum commitment to long term
○ so investors can retain flexibility
Returns …
○ should exceed inflation
○ minimise tax
○ be better than bank interest rates
○ and are unrelated to markets
as we at Quality Group repeat daily
“Have you future-proofed your tomorrow?”
What is the ideal Investment and ideal Investment Term?
The performance of markets in the traditional assets of cash/money market funds, bonds and equities has been a roller coaster ride of turmoil and returns. Investors are exhausted, confused, and often poorer!
USA Market Returns-Top 500 USA Companies
Stocks-Bonds-Inflation
Since 1928 USA equities/stocks have averaged $9,90% pa. And that is just shy of 100 years. So, markets do give returns better than inflation (The red line) as illustrated by Bloomberg above. $100 000 invested from 1982 to 2022 is worth $6,7 million (green line). Handsome indeed. Bonds (blue line) finished at $1,295 million but flatlined in the last decade. But all these returns are long-term.
Turmoil
The grey columns illustrate market and world events and the effect and the turmoil. Yes, markets perform, but over the long term, but the rollercoaster of markets, is emotionally stressful and makes it exceptionally difficult to plan financial freedom when world events influence returns with increasing volatility.
Investors today view the world, their financial goals with ever shorter horizons. 10 to 15 years is lifetimes away and the focus is 1-2 years to a maximum of 5-6 years. Clearly the markets, equities and bonds will not be kind to such investors as any term less than 10 years will invariably disappoint as investors need to access wealth/income in market dips. The below S & P 500 (Top USA 500 companies) demonstrates that even long-term investing reflects volatility that seriously impacts wealth. Compare 10 years versus 25 years. See the graph below how a 5% return reduces wealth and Quality of Life.
Quality group subscribes to Albert Einstein and Warren Buffet in managing money. Invested money must be effective and must not lose. Look at the years it takes to double wealth @7% : 10,28 years @12% : 6.0 years. A huge difference over 10 -15 – 30 years. And consistency is key ie. don’t lose! it is an uphill fight just back to where you started.
As an advisor I nearly “packed it in” as I repeatedly disappointed clients having to report the reality of traditional investment strategies centred around cash, bonds and equities, in all the variations. Desperation and research led me to alternative investments. Art, exotic cars, rare earth metals, real estate, gold, crypto, renewables … and private equity & private lending. Curated assets that perform consistently over the short and longer term.
Private equity & Private lending have proved the answer
The investment landscape morphed in 2008 when central banks introduced lending limitations on the traditional banks and lending to small and mid-size businesses literally “dried up overnight.” These $3m to $150m revenue pa businesses turned to the private market and PWC estimates private equity & private lending will reach $21 trillion by 2025.
15% of global assets under management!
The good NEWS
Quality Group has curated fixed income investments and are able to share unique investments that do what they are supposed to do.
○ steady, consistent returns
○ income or growth options
○ returns are above average
○ exceed inflation
○ better than bank interest rates
○ disconnected from markets
○ with capital protection
hugely appreciated in this uncertain world and roller coaster markets
In Summary
Alternative assets, Private equity and Private Lending are consistent, steady and terms can be short, without the turmoil of rollercoaster markets with equal returns to long term markets.