Despite the economy tanking and numerous countries around the world suffering financial meltdowns, the rich and wealthy have managed to increase their wealth and assets. This may come as a surprise to some seeing as there have been so many financial problems here of late and there have been many people who have had their life savings and retirement accounts wiped out over the past few years. However, the rich have managed to hold steady and watch their investments and net worth climb. Read on to learn what the rich are doing what their money that you need to be doing as well.
The rich have continued to invest in stocks for the long term. They have used the bad economy and depressed prices for shares of companies as their opportunity to buy more stocks in valuable companies at a discounted price. You should also be buying blue chip stocks in companies that may be trading for discount prices today. Look for companies that have large amounts of cash at their disposal, minimum debt on their balance sheets, a healthy dividend payout, and one that can weather the storm during a recession. Companies that fit the criteria are companies like hamburger giant McDonalds, superstore Walmart, cigarette maker Altria Group, drug and personal product makers Johnson and Johnson and Proctor and Gamble. These stocks should continue to reward the rich and wealthy for being patient until the economy starts to turn around for the better.
The rich have protected some of your wealth and hedged against inflation and the sinking economy by buying commodities like gold and silver. Owning investments like gold, silver, and oil tend to help protect a person's wealth and portfolio from bad econonmic climates. Devoting a small portion of your portfolio to gold is good because gold is what most currencies around the world. Oil also is a worldwide commodity that will always have value and even dictates the state of the worldwide economy.
The rich have been working to create as much passive income as they can. They have started businesses and continued to buy income producing real estate like office buildings and apartment buildings. You should also be working to create as much passive income as you can! This type of income is the least taxed the least by the government, has many tax incentives that the rich utilize, and you don't have to work as hard to maintain a source of passive income once it starts flowing into your pockets. Some good passive income opportunities include starting businesses online, investing in real estate, and finding ways to make money online.
In conclusion, you too can see your wealth and assets increase even during times of economic hardship like the rich and wealthy have. You may not have as many zero's behind your investments or your may not have as much money as the rich and wealthy, but you can make sure you are financially comfortable and increasing your portfolio's assets and investments. Remember to continue working hard on buying assets and getting richer than ever. Good Luck!