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Top financial adviser: ‘If all you do in life is work really hard, you’re never going to get wealthy’


monopoly man graffiti
Hard
work is only half the story.


Flickr
/ aisletwentytwo



In school, we learn that tough work will get us forward in life.
Work hard, earn more, get rich.

But, “that’s only half the story,” says Ric Edelman, CEO of
Edelman Financial
Services
, one of the nation’s heading financial advising
firms, and author of the new book “The
Truth About Your Future: The Money Guide You Need Now, Later, and
Much Later.

In fact, Edelman told Business Insider in a
new Facebook Live
interview, “If all you do in life is
work really hard, you’re never going to get wealthy. Because it’s
not adequate that you work tough to make income to set some of it
aside.”

Edelman says in sequence to safeguard future wealth, you must “equally”
work smart.

Specifically, by investing.

It’s an age-old concept. Take the diversion of Monopoly, for example.
If you’re simply rolling the bones and flitting GO to collect your
paycheck, only to save that cash, you’re going to get
dejected by your opponents who are strategizing to buy up
properties that will get the many returns.

That’s not so distant from reality. Ultimately, the greatest
financial prerogative comes from operative smart, Edelman said. That is,
holding advantage of
devalue interest
by investing so that your income earns money
on itself.

“You will never grasp financial success if you put your money
into a bank account, or a CD, or a T-bill, or a muni bond, or an
payments product,” he says. These forms of accounts mostly offer
seductiveness rates next 1%.

Instead, you should be looking at the batch market, Edelman said,
which has had a chronological normal return rate of 10% given the
1920s. “It’s really easy to do and you can do this and generate
high single-digits, 6, 7, 8, 9% — and that’s all it takes to
enjoy the advantages of devalue expansion over many decades. ”

Investing doesn’t meant you have to risk it all. “You can do this
but holding a outrageous volume of risk, you can do this but a
lot of effort, you can do this but a lot of time,” he said.
“All you need to do is build a diversified brew of investments,
using low-cost exchange-traded supports (ETFs) or mutual funds, and
build a diversified portfolio on a global basis,” he said, adding
that genuine estate is another good place to invest.

The bottom line: Continually operative harder won’t be adequate in
the prolonged run. But reckoning out how to maximize the income you do
have
will make you rich
.

Watch the full Facebook Live:

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