Do you know Warren Buffet’s #1 rule for investing? It’s one of the key principles we enact that help our clients learn to invest like the wealthy into retirement.

For most of us, efforts toward having a prosperous retirement hold great value.

Proper planning can make for an easy transition to retirement and build a strong financial foundation.

You may be scratching your head and wondering what steps you need to take in order to achieve financial health, but it’s simple. 

Ty J. Young Wealth Management is a top financial planning firm in Atlanta dedicated to providing clients in all fifty states the tools they need for successful investment strategies. Below, we’ll take you through the key principles we enact that help our clients learn how-to invest like the wealthy. 

Or watch Ty J Young take you through his thought process here. 

Don’t Put All Your EGGS in the Same Basket

When the market is soaring, selling your stock for anything less than what you bought it for seems unthinkable. That brings us to our first rule: diversifying your portfolio. Since the market is unpredictable, having a diverse portfolio can lower the risks of losing your money.

The central thesis of diversification is the practice of spreading your money around a variety of assets. By doing so, you’re helping to secure your financial accounts from unexpected events in the market. Of course, in 2008, most people with diverse holdings lost money in all of their funds. That’s why it’s important to choose your conservative funds carefully. Smart choices can lead to rewarding outcomes.

What Does Real Growth Look Like?

At Ty J. Young Wealth Management, we practice Warren Buffet’s number one rule of Investing, “Never Lost Money.” Investing too aggressively doesn’t protect you against a volatile market.  Our financial advisors here in Atlanta advocate the importance of a balanced investment strategy that protects a percentage of your wealth while still giving you an upside of growth. Activating these major tools avoids the emotional and financial stress that can set you back for years.

In order to benefit from your retirement, understanding the power of taking smaller steps forward with no steps backwards is extremely important. The wealthiest people in the world don’t put their money in the market where they’re not in control of it and they could lose between 10-30% of their assets, waiting years to get it back. American icon Will Rogers said it best, “I’m more interested in the return of my investment than the return on my investment.” In simpler terms, he would much rather make nothing than lose anything.

Let’s Recap

There is a reason why the wealthy have seen so much success in their financial investment strategies. They follow Warren Buffet’s number one rule, “Never Lose Money.” Oftentimes, we think big when it comes to our financial strategies and what we want in return, but the risk may simply be too high. Our wealth management firm encourages you to choose a balanced retirement strategy: one that can earn a reasonable rate of return and protects the principal from market losses.

Now it’s your turn to make your goals a reality. Are you interested in investing like the wealthy? Take the first steps in growing your financial health toward a successful retirement.

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