12 ASSETS THAT MAKE YOU RICH

Introduction

This tutorial outlines 12 key assets that can help build wealth, as discussed by Toby Mathis, a tax attorney and wealth advisor. Understanding these assets is essential for anyone looking to improve their financial situation and invest wisely. Each asset has unique benefits and considerations, which will be detailed below.

Step 1: Understand the Importance of Cash

• Cash is crucial for seizing investment opportunities.
• Store cash in high-yield savings or money market accounts to combat inflation.
• Regularly assess your cash flow to ensure you have liquidity for investments.

Step 2: Invest in Real Estate

• Real estate can be a stable source of income and appreciation.
• Consider rental properties, commercial real estate, or real estate investment trusts (REITs).
• Conduct thorough market research before purchasing.

Step 3: Consider Bonds

• Bonds provide fixed income and are generally less volatile than stocks.
• Look for government or corporate bonds based on your risk tolerance.
• Assess the bond's yield and maturity to align with your financial goals.

Step 4: Explore Stocks and REITs

• Stocks offer potential for high returns but come with higher risk.
• Diversify your stock investments across various sectors.
• REITs allow investment in real estate without owning physical properties.

Step 5: Utilize Mutual Funds and ETFs

• Mutual funds pool money from many investors to purchase a diversified portfolio of stocks or bonds.
• ETFs (Exchange-Traded Funds) offer similar benefits but trade like stocks.
• Choose funds that align with your investment strategy and risk profile.

Step 6: Invest in Commodities

• Commodities like gold, silver, and oil can hedge against inflation.
• Consider direct investment or commodity-focused ETFs.
• Monitor market trends and economic indicators that affect commodity prices.

Step 7: Leverage Intellectual Property

• Intellectual property (IP) can generate income through licensing or sales.
• Consider patents, trademarks, and copyrights as potential assets.
• Understand the legal requirements for protecting your IP.

Step 8: Explore Cryptocurrency

• Cryptocurrency can be a high-risk, high-reward investment.
• Research different coins and blockchain technologies before investing.
• Use secure platforms and wallets to store your cryptocurrency.

Step 9: Invest in Collectibles

• Collectibles such as art, antiques, and rare coins can appreciate over time.
• Ensure you have expertise or consult experts in the collectible market.
• Keep collectibles in good condition and properly insured.

Step 10: Build a Business

• Owning a business can be one of the most significant wealth-building assets.
• Focus on creating a sustainable business model that addresses market needs.
• Consider partnerships or franchises to leverage existing frameworks.

Step 11: Utilize Tax-Advantaged Accounts

• Invest through accounts like IRAs and 401(k)s to reduce taxable income.
• Take advantage of employer matches in retirement accounts.
• Understand contribution limits and withdrawal rules to maximize benefits.

Step 12: Invest in Education and Skills

• Continuous learning enhances your ability to earn higher income.
• Consider formal education, online courses, or certifications in your field.
• Networking and mentorship can also provide valuable learning opportunities.

Conclusion

By understanding and investing in these 12 assets, you can create a diversified portfolio that helps build wealth over time. Start by assessing your current financial situation and consider incorporating these assets into your investment strategy. Remember, the key to wealth building lies in informed decision-making and continuous learning.