Help Grow Your Portfolio For Retirement With Gas, Electric, Water And BRICs

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Help Grow Your Portfolio For Retirement With Gas, Electric, Water And BRICs

17 December 2015
 Categories: Finance & Money, Blog

Don't let your money stagnate. If you have your money tied up in cash, then you are missing out on plenty of growth opportunities. You need to invest your cash in something that will grow, be it a stable domestic company or a foreign stock. Otherwise you will wake up in few years and find that you don't have enough in the bank for retirement.

Here are two suggestions that can help your savings grow.

Build a Strong Portfolio With BRIC ETF's

These BRICs are not the type that you build a house with; they are stocks from Brazil, Russia, India and China. The acronym was coined to describe the economies of these big 4 countries that were all poised for large growth.

When looking at BRICs, look for an ETF instead of purchasing individual stocks. An ETF (exchange traded funds) simplifies the investing for you. These funds are comprised of shares in many different companies from Brazil, Russia, India and China. So, instead of having to research and purchase twenty or more stocks from separate companies, you can buy a single ETF. Analysts who work for the fund do all of the heavy research for you.You will pay a small fee (expense ratio) when buying a fund, but it is totally worth it.

When looking at a BRIC ETF, look to see what the holdings are. Most of them will provide you with a pie chart that will depict the percentage of assets in China, Brazil, India and Russia. So, if you're partial to a particular country, choose an ETF that has more holdings in that country's stock market.

Keep in mind that BRICs are still potentially risky. These are large economies, but they are still developing. So, while there is the potential for huge rewards, there is also the potential for a big loss.

Everyone Needs Gas, Water and Electricity

If investing in developing nations sounds a bit risky, so if you want something more stable, consider utility companies. These are the companies that provide water, gas and electricity. The great thing about these stocks is that most of them pay a high dividend. You can set up the stocks in your account to be on DRIP (dividend reinvestment program.) This means that the dividends are used to buy more stock in the company. When it comes time to retire, you can change this strategy and begin taking the dividends as cash.

To learn more about investing in BRICs or utilities, speak to an investment company like Global Wealth Consultants LLC.

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Improving My Financial Situation

When I started my own business, I didn't realize how financially taxing it would be. Month after month, I found myself struggling to make ends meet, and it was really frustrating. Finally, one day I realized that I couldn't keep the doors open another month unless I got some help. I started working with a professional financial consultant, and that's when things really changed for me. I was able to identify the places that I was wasting money, and it was amazing to turn things around. This website is all about managing your money a little better so that you can enjoy your financial situation.