If you're in your 40s, you're probably thinking about how to build wealth. If you're not, well: You should be. Because a growing number of studies are showing that people who have a lot of wealth tend to live longer than people who don't have as much.
The key is to focus on building up your net worth. "Net worth" is defined as your assets minus your liabilities—basically, the difference between what you own and what you owe. (If you've got a lot of debt, that's going to lower your net worth.)
So how can you build wealth in your 40s? Here are some ideas:
1. Invest in stocks and bonds. Stocks are risky; they can fluctuate in value over time without warning. But if you invest in them prudently, they may be able to grow tax-free for years or even decades. Bonds are also risky but because they're backed by the government, they're generally less volatile than stocks. So if you want more stability than stocks can offer but still want some risk-taking… bonds might be perfect!
2. Don't keep all your eggs in one basket (or one stock).
3. Invest in yourself by taking classes or tutorials on financial planning and investing. In addition to learning how to do these things yourself, you'll also learn more about what the options are out there for investing.
4. Consider using an investment advisor who can help guide you through the process and make sure that all your ducks are lined up in order before making any decisions!
The key is to focus on building up your net worth. "Net worth" is defined as your assets minus your liabilities—basically, the difference between what you own and what you owe. (If you've got a lot of debt, that's going to lower your net worth.)
So how can you build wealth in your 40s? Here are some ideas:
1. Invest in stocks and bonds. Stocks are risky; they can fluctuate in value over time without warning. But if you invest in them prudently, they may be able to grow tax-free for years or even decades. Bonds are also risky but because they're backed by the government, they're generally less volatile than stocks. So if you want more stability than stocks can offer but still want some risk-taking… bonds might be perfect!
2. Don't keep all your eggs in one basket (or one stock).
3. Invest in yourself by taking classes or tutorials on financial planning and investing. In addition to learning how to do these things yourself, you'll also learn more about what the options are out there for investing.
4. Consider using an investment advisor who can help guide you through the process and make sure that all your ducks are lined up in order before making any decisions!