Where to begin?
One of the most prominent pieces of advice Gates has given in the past is: “save like a pessimist, but invest like an optimist”. This profound wisdom, which was distilled from a number of lessons Gates once provided in an in-depth interview with CNBC, stands true to this day.
Diving into Bill Gates’ first piece of advice, rainy day funds are critical, and you can choose from a range of assets to store your wealth over the long-term.
1. Keep cash on the sidelines
For those looking to simply sit on U.S. dollars but don’t want to have your savings eaten away by inflation, the conventional wisdom is to opt for a high-yielding savings account.
Wealthfront’s cash account is designed for those seeking a reliable and safe high-yield savings plan.
With full access to your money at all times, Wealthfront offers fast (and free) transfers to internal Wealthfront investing accounts, as well as external accounts. That’s the kind of liquidity and optionality Bill Gates might recommend.
Certificates of Deposit (CDs) are another excellent vehicle for a rainy day fund. CDs are typically less liquid than high-yield savings accounts, but for those looking to build Bill Gates-like wealth, the higher yields of CDs have the potential to provide even more compounding over the long-term.
Build wealth, and keep it
Two more of tips you can take from Gates’ overall strategy can be boiled down to:
2. Long-term investing gives you more protection from market fluctuations and the power of compound interest
For the vast majority of American households, around 70% of their net worth is tied up in real estate. And while the majority of this net worth consists of the primary residence, a significant number of investors look outside their principal residence to generate returns.
Arrived is a platform that allows individuals to invest in rental properties and vacation homes, without the headaches of being a homeowner or landlord.
Backed by world class investors like Jeff Bezos, Arrived provides access to SEC-qualified investments in residential real estate, a solid option for those looking to build a nest egg and keep it (just like Bill Gates).
3. Always be learning about how the market works and adapting your investing strategies
Outside of assets like real estate, the other major investment for most Americans is the stock market. If you’re invested in a 401K or similar retirement program, your capital for retirement is most likely in the stock market.
Those seeking advice on where to allocate their capital may want to consider trusted investment tips and insights from platforms like Moby. Moby provides you with access to the best investing research, broken down into simple and easy-to-understand formats.
Those looking to become a smarter investor in just five minutes can get access to their full library of stock and crypto reports, written by former hedge fund analysts — all with a 30-day money back guarantee.
Plan for the worst
Having contingency plans in place, to prepare for the ‘100 year storms’ Bill Gates often discusses, is important. While working toward ambitious goals (and having an optimistic outlook for the future) is important,
4. Build a strong safety net to cover potential catastrophic losses
Gates’ advice is to also put some worst-case scenario plans in place to help you manage the difficult times.
If you need advice on preparing for the lean times — or how to put your ambitious investment goals into action — Zoe Financial is a top option for those seeking a fiduciary advisor. The easy-to-use platform provides access to trusted financial professionals who can help you create a plan tailored to your unique financial situation.
Find your top three advisor matches today and book a free initial consultation to get started.
