Smart investing is one of the most effective ways to grow wealth and financial stability, enabling you to pursue your dreams. However, navigating the world of investments can be overwhelming. That’s where Clay Rogers of Teamwork Financial comes in.
Rogers discovered his passion for financial services during an internship with Teamwork Financial in 2018, where he worked with the tax team and gained valuable industry insights. Now, as a licensed financial professional, Rogers helps clients make informed decisions about their investments at every stage of life.
As we look at ways to grow your wealth and realize your goals, Rogers shares his expert insights on investing strategies, market trends, and how to make your money work for you.
(Responses edited for length and clarity.)
It feels like there are lots of approaches to investing out there. What strategies are most prominent, and how are they different?
There are many approaches to investing in this day in age. There’s momentum investing, dollar-cost averaging, and many others, but the two most prominent strategies would be passive investing and active investing approaches. The difference is in the way they are managed. Active investing employs a “buy-and-hold” strategy with very little outside interference within the portfolio. On the other end, active investing results in a lot more frequent buying and selling within a portfolio based on market trends.
What are the important factors to consider when trying to grow wealth?
There are many factors that contribute to the accumulation of wealth, but some of the most important are contributions, time horizon, and asset location. Contributions define how often and how much you’re adding to your accounts and saving toward your goals. Time horizon refers to how long you have to save and grow your assets. Finally, asset location considers the many different types of investment vehicles and each asset class's historical and projected growth.
When it comes to investing, people often focus on the immediate short term (i.e., retail investing, crypto, meme assets, etc.) or the distant long term (retirement). What kind of strategies are helpful for building wealth in the next ten years or so?
When it comes to building wealth in terms of a 10-year horizon, it is really going to come down to appropriate asset location and realistic goals, as well as each investor’s tolerance for or adversity to risk. For someone who is risk-tolerant, the best growth potential in 10 years will come from the stock and equity market. For the more risk-adverse investor, a mixture of stock and equity positions with a portion in the fixed income/guaranteed return area of the market may be a more favorable approach.
Give us your best advice for growing wealth and doing it wisely.
Look at the historical performances of the different areas of the market. That gives a good benchmark of average performance depending on investment style.
Also, it’s important to know what you are paying for in terms of your investments, whether you have mutual funds, exchange-traded funds, or use an investment advisor. All of these things come with expense ratios and fees, so it only benefits investors to know what they cost. Always remember the other important areas of your life that tie both directly and indirectly into investments, specifically from an estate planning and tax perspective.
Remember, it is never too late or too early to start investing. Whether you have retirement in mind or any other financial goal, time in the market is your ally.
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