Asset management can become quite routine and monotonous if you stick to your plan too rigidly. However, there are definitely changes you can make to improve efficiency, diversify your portfolio, and open up new investment opportunities this year.
Let’s take a closer look at 8 tips to help you manage your assets the right way in 2018 …
1) Make Use of Apps
Although many of us don’t like change, it’s still worth testing out some of the many portfolio management apps available on Android and iOS.
As much your current method might work for you, you’ll be surprised at how efficient apps like ‘Personal Capital Finance’ or ‘SigFig Wealth Management’ can be, once you plug in your personal info and connect your accounts.
As well as keeping tracking of everything and delivering relevant notifications, they can even give you basic tips and advice!
2) Consider Crypto and P2P Lending
Everyone knows that they should diversify to strengthen their portfolio of assets, and we all know about retirement plans, savings accounts, mutual funds, bonds, and shares. So, what’s actually new out there to diversify in to?
P2P lending is growing in popularity because it’s a great way to reduce middlemen and get a safe return. Your money only goes to those that meet your chosen criteria and modern tech does all the hard work. Just invest and sit back for the profit.
Another modern investment trend is trading in cryptocurrencies like Bitcoin. While the market has been volatile, its continued growth and emergence in the mainstream mean it’s only going to get more stable. Of course, it remains risky in the short-term, but the investment potential is many years down the road when it becomes a household currency.
3) Save On Fees
If you use a brokerage or asset management firm, check-in in every so often to see if you’re being stung on the fees.
If you’re just starting out, consider one of the many discount brokerage firms out there or invest in an index fund, which tends to have lower fees in general. You can branch out as your assets grow.
4) Save More
Making your money work for you is one thing, but making more and saving more in the first place will compound your investment potential.
There are many ways to increase your income fast, but whatever you choose, make a pledge to increase your monthly savings amount in 2018.
If you want to get into riskier investments, siphon-off these extra savings to do so.
5) Roth Over 401(k)
Putting your holdings in a 401(k) retirement account reduces taxable income each year, but you will still pay tax on any money withdrawn from that account. However, a Roth IRA allows you to withdraw earnings in retirement without paying tax.
So, unless your employer matches your 401(k) contributions, a Roth IRA is a better asset to have.
It’s not too late to switch and there’s nothing stopping you maintaining both.
6) Look Overseas
Most people tend to only make investments in their home country, but this is closing yourself off to a world of possibilities, especially in emerging economies.
7) Regularly Re-evaluate
A lot of people start out enthusiastic about building their portfolios and then reach a point where they’re comfortable with their investments and leave them on relative autopilot.
Instead, you should be regularly evaluating your portfolio, looking for new opportunities, and most importantly—putting in new money.
If your investments have stagnated or you haven’t thought about doing something new, now’s the time!
8) Don’t Overdo It
Just because you can manage your financial assets yourself, doesn’t necessarily mean you should. If your portfolio becomes too large to handle yourself, you might consider hiring a manager to take over—an investment itself.
While there is always some risk involved with managing your assets, the above tips will give you a good grounding for moving forward in 2018.