The smartest move to make while investing is to try and future-proof where you're putting your money. After all, most investments are done for the case of the future, whether it's to increase your wealth in the long run for the simple sake of increasing your wealth, or whether it is to save for retirement or your family. There are many ways to accomplish this goal, but among them are these five signs to look for in investments to future-proof them.
A Great Team and a Complete Business Plan
These are the two best ways to see whether or not a business will last. If it has these two things behind it, the business has a good chance of weathering the storms that the market will throw at it, as well as enduring the hard first-few-years period of operating. Once it has gotten through that period, the business is smooth sailing. So look for these two attributes when choosing a business to invest in.
Crunch the numbers. If the valuation of a business, stock, mutual fund, or any other investment opportunity seems too good to be true, it probably is. You should look for something that provides a reasonable return for the money that you put into the business.
Individual Retirement Accounts
IRAs are one of the best things to invest in for your future. They will provide a solid source of wealth that you can use for retirement. Unlike other retirement plans, IRAs run through mutual fund brokerages, which require more of an initial investment and therefore provide a higher, more stable return.
Good Automatic Investments
Investments into other mutual funds will increase your chances of having a stable investment income to live off of in the future. In addition to this, automatic investments will limit your risk by investing when the market is low and high, so it will average out if nothing else. You can tailor your automatic investments with the help of a financial adviser.
A Founder With Integrity
Startup founders need to be as committed as the team of employees that they have working on their business. By investing in a company or a founder who values integrity, you cut the risk of investing in a business. A smart investment move for the future is one that promises continued growth and an ever-increasing ROI, and investing in a solid startup is a solid way to accomplish that. Thus, you should put your money into a company that's looking for a successful long-term partnership and has a team and a founder who value integrity.