Americans can build wealth and achieve financial security by following proven long term financial strategies and wealth building principles.

These fundamental financial principles include to live on less than they make, avoid debt, stay invested for the long term, have an emergency fund, and remain financially disciplined and responsible. Theses are just a few of the habits and principles of Americans who have built wealth and achieved financial security.

INVESTING WITH PURPOSE

Investing is a great way to grow your money, especially for long term goals like building assets for retirement. It is important to understand and accept that building wealth has little to do with income or background.  According to financial guru David Ramsey, “it doesn’t matter where you come from…it matters where you’re going.”

What it does take to build wealth and achieve financial security is saving and investing over a long period of time measured in decades, patience and a systematic approach that creates good wealth building habits.

When you’re planning for short- or medium-term financial goals, it may make sense to put your money in a savings account or short-term cash equivalent, such as a certificate of deposit. For longer-term goals (more than 3 years away), you want to start investing a portion of your money to accelerate the growth of your savings and net worth.

It is imperative that investors avoid the pitfalls of short term financial strategies, such as reacting to equity market volatility, chasing returns, timing the market and excess trading. Instead, the strategy and focus must for financial long-term goals like retirement.

Overall, our belief is that it does not require vast investing knowledge, a large income, a streak of good luck, or a huge inheritance to build wealth or become financially secure. It takes embracing proven long term financial strategies and wealth building principles, such as to stay invested and focus on the long term.

Longevity and long term health care costs in retirement are significant challenges that must be considered by Americans.

Focus on long-term financial habits and goals

The best investor isn’t necessarily the person with the most short term successes, but rather the one with the best process and judgment. To make money safely and steadily, it is not the companies we invest in were flawless, but “the price” was too favorable to those who invest in them.  This experience produced two of my most important observations:

• Success in investing doesn’t come from buying good things, but from buying things well, and it’s essential to know the difference.
• It’s not a matter of what you buy, but what you pay for it.

Investors should not spend all of their time picking outstanding companies that the prices they paid were too high.  Mostly winning companies appear as poor investments in the beginning.

We’re living longer, and the world’s population is aging rapidly. In fact, the number of persons aged 50 or above is expected to double to almost 3.2 billion by 2050, according to UN projections. It will transform the way all of us will live, both economically and socially.

With unprecedented spending power, our ability to work longer and to have different retirement expectations, today’s older generation will propel innovation and economic prosperity unlike before. Their collective needs and spending, an estimated $7 trillion and climbing, will drive certain sectors, products and investments, that will have a substantial impact and ripple effect on economic activity.

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