Nils Larsen Manager Covers Great Investment Vehicles Some Newer Investors Overlook
Financial Manager Nils Larsen Covers Great Investment Vehicles Some Newer Investors Overlook
Stocks and bonds are perhaps the most popular investment vehicles for many individuals and families, but there are many other investment opportunities. That's why financial expert Nils Larsen is going to cover other vehicles.
Investing in stocks, bonds, and other assets offers a way for families to build up their wealth. Inflation is pretty much a constant in modern society, and the money you have today will most likely be worth less next year. Through investing, you can protect against inflation and increase your wealth. While stocks and bonds are among the most popular assets, portfolio manager Nils Larsen believes other assets are worth a look too.
“Everyone who has a bit of money to spare, whether it’s a hundred bucks and ten thousand, should consider investing,” financial manager Nils Larsen says. “Besides stocks and bonds, you should also consider real estate, precious metals, exchange-traded funds, and financial derivatives, like futures and options.”
Did you know that many if not most professional investors fail to beat financial markets? This means that within a given year, the NASDAQ or S&P 500 may enjoy bigger gains than the professional investor’s portfolio. So, if the NASDAQ gains 20 percent, a professional investor might see gains of only 17%.
You may have enjoyed better gains than the professional investor simply by investing in an exchange-traded fund tied to the NASDAQ, the S&P 500, or another stock index. Further, while professional mutual funds often charge high management fees, the most attractive exchange-traded funds feature low fees.
“If you’re not comfortable picking stocks, investing in exchange-traded funds based on the NASDAQ or S&P 500 is a great way to invest,” Nils Larsen argues. “Just make sure that any associated fees are reasonable.”
Financial Expert Nils Larsen Talks About Inflation Resistant Assets
The United States government, among other governments, has used large stimulus packages and measures to spur the economy in recent months. In practice, stimulus measures often increase the money supply, which may spur inflation. Many investment vehicles are inflation-resistant, however.
“If you’re worried about inflation, and you should consider it at the very least, investments in precious metals and real estate may be wise,” financial manager Nils Larsen says. “Historically, precious metals like gold have enjoyed large gains when inflation is high.”
“Why? In part, it’s because people park money in precious metals to protect their wealth," manager Nils Larsen further explains. "Since supplies of gold and other metals are limited, increased demand means increasing prices.”
When inflation is high, some investors prefer tangible assets like real estate. It’s not uncommon to see rising property costs as inflation increases. There’s only so much real estate, including land, available. Real estate also offers the possibility of rental income, allowing you to make money long before you sell the property itself.
“Financial derivatives, sports cards, cryptocurrencies, there are many other investment opportunities,” finance expert Nils Larsen says. “Before getting into these more advanced vehicles, however, you should educate yourself extensively on markets.”
