How do you build up capital in the long term? How do you build capital in the long term by investing 100% in shares?
Despite wars, major economic and financial crises, stocks have always outperformed other forms of investment. In more than 200 years, stocks have achieved an average of 6.7%.
How do you build up capital in the long term?
So you see in the longer term nothing beats equities for investors. The use of the fkc concept there.
How to build up a large capital?
Risk management is therefore one of the main challenges for investors looking to increase their long-term returns through equities.
Then comes the power of systematic investment in mutual funds as the ultimate resort. Building wealth is often associated with finding a star share or speculating on price appreciation. Yet the key to success on the stock market is not to find those stocks or to enter or exit at the right time.
How much money can you make and build wealth with stocks?
Stock market success has more to do with strategy than luck. We call this strategy systematic investing. With this strategy we achieve a superior return of 6% to 18% return on an annual basis.
Start investing in real estate – patience
The system consists of investing an amount in equity funds every month. You don’t have to think about it and moreover, with systematic investing you also avoid becoming a victim of your own emotion. You do not have to take into account economic reports, good or bad or price movements on the stock market. You just keep depositing a fixed amount consistently every month.
You really do not have to be fooled by bad news or price fluctuations, because bad news and price fluctuations will even play in your favor. After all, if the prices start to fall, you will receive more shares in your stock portfolio and if the prices go up again later, you will benefit more than ever.
The end of the year is fast approaching. The good news is that there are various ways to save a lot of money in the last weeks of 2020. We show you how on the basis of nine handy saving tips.
Pay off debt
Do you still have a modest debt outstanding? Or are you ready to repay the last mile of your student debt? Then it is wise to repay those amounts before the end of the year. This is beneficial for the capital yield tax. The reference date is 1 January of the new year.
Make that big purchase already
Do you have a lot of savings on hand? Then you may have to pay wealth tax on this. For 2020, the asset-free limit is 25,000 euros for people without a tax partner and 50,000 for people with a tax partner. Do you have more in your bank account? In that case, you must pay 1.2 percent tax on the amount above the tax-free limit.
If you were already planning to make a major purchase or, for example, book a holiday, it would be wise to do this before the end of the year. This way you stay below the tax-free limit and you ultimately save 120 euros on every 10,000 euros in assets.
