4 Tools that Wealthy Investors Use to Make Money

Everyone has heard the saying that the “Rich get Richer!”

Do you use these tools that the wealthy take advantage of?

The 1st tool is Fee Negotiations

Wealthy are very good at avoiding fees.  They negotiate everything from interest rates to management fees.  Think about it…the better your credit, the less risk you are and the more power you have in your negotiations.  Wealthy investors use this knowledge in their investments as well.  Smart investors know how to invest their own money without paying high mutual funds fees or investment advisor fees.

The 2nd tool is Time.

Time is really not a tool unless you know how to use it.  Think about time as it relates to money…or interest.  You pay interest on your home or your credit cards each month for the amount of money that you borrow, thus, the bigger the amount the higher the interest payment.  The longer the time frame the more interest you pay over the life span of that debt.  The wealthy have learned how to collect this time or interest.  In normal high interest markets they would be buying bonds and collecting a nice interest rate, but we are currently in a low interest rate environment.  An alternative that wealthy investors use is real estate.  They buy property, rent it out and collect a higher rent than the mortgage payment.  This basically gives them the ability to collect interest over time.  The more money they have the more property they can buy, the more rent they can collect.  This is what wall street, banks and credit card companies do…they collect interest from you.

The 3rd tool is Leverage

Wealthy investors know how to leverage their time and their investments.  They have figured out to to control and asset for less than the full value.  An good example is the same as our house example from above.  They take out a loan to buy a house and control that house.  They can then choose to live in the house, rent it out and or sell it for a profit.  They buy a $1Million house for $200,000.  If they turn around and sell the house for $1.2 Million with a profit of $200,000 and they make 100% return.  Leverage can be used in almost every asset especially the stock market!

The 4th tool is Timing

Wall Street has always told the “Mom and Pop” investors to invest for the long term.  Their main selling point is that the market, “over the long term” averages 6-8% a year.  The whole time you keep your money with them…they collect their fees and interest.  They don’t want you to have independent thoughts and take any money out of their accounts.  If you think about the wealthy investors…they always seem to step in at the right time to buy things at the low or sell things at their highs.  Do they cheat?  Unfortunately, they are just paying attention to things that the average Joe does not look at.  They watch for trends that are starting and ending and get in or get out.  They follow the simple mantra of buy low and sell high!

So How do YOU take advantage of these tools?

The first step is to take control. Look at the 4 tools and analyze how you can make them work for you.  Here at ActOpt.com we believe that every investor has the ability to utilize these tools.  We created a Hybrid Investment Strategy that uses 3 of the money creation tools.  Negotiating fees save you money but does not give you the ability to create profit.  Our Hybrid Strategy uses the most liquid market with the most historical information (timing)…the stock market.  We then utilize leverage with stock options.  These options also provide the ability to collect a return on a weekly or monthly basis.  So not only can you participate to the upside in stock appreciation you can collect rent along the way.   There is no other product out there that can accomplish this in on investment.  The hybrid strategy when initiated properly utilizes the 3 money creation tools that the wealthy use.  Our course also has an awesome bonus on how to use the fee negotiation tool to select the best investments and get away from Wall Street’s high fees in the “How to Beat the Market” section.

If you want more information on this course then please click on this link:

Active Investing HYBRID Course