Becoming a millionaire is the dream, one that can become a reality even for those who were not born into affluent families. According to The Ascent, roughly 8.8% of the American population is a millionaire. The majority of these individuals are self-made.
Check Out: In 5 Years, These 2 Stocks Will Be More Valuable Than Apple
Read Next: Become a Real Estate Investor for Just $1K Using This Bezos-Backed Startup
While everyone’s journey is different, self-made millionaires are often those who invest strategically over a long period of time. But what exactly are these individuals investing in? And what are their plans for the remainder of this year and beyond?
GOBankingRates spoke with two self-made millionaires — Tim Hastings and Paul Gabrail — about their investment strategies for the rest of this year. These are the main investments they’re going to make for the second half of 2024.
Wealthy people know the best money secrets. Learn how to copy them.
Real Estate
Paul Gabrail is a self-made millionaire and disciplined investor whose wealth-building strategy relies on value investing. He is also the founder and host at Everything Money, a digital show educating his audience on intelligent investing and all things money.
Gabrail plans to add to his real estate investment portfolio later this year by purchasing two lake homes as rental properties. He is also purchasing a 200-unit apartment complex located in Louisville, Kentucky.
When asked about why he chose real estate as part of his investment strategy, he said it’s all about what he can buy and what rental prices he can get. For each property he buys, it’s also about finding a great deal where others just don’t see the value he sees — generally because rents are too low. While others might pass up these properties, he said he sees them as opportunities.
Learn More: 3 Types of Investments Predicted To Plummet in Value in Summer 2024
Stocks
Historically speaking, the stock market has seen an overall upward trend. It has had its fluctuations to be sure, and not every stock is valued the same, but it is still part of Gabrail’s investment strategy this year, and likely beyond. After all, investing in the stock market isn’t a sprint — it’s a marathon.
Gabrail said he intends to continue to invest in stocks even as prices decline. His top picks right now include Nike, Alibaba and Sprouts Farmers Market. As part of his overall strategy, he said he prefers stocks that are out of favor or have temporary issues but have staying power.
Like real estate, Gabrail chose stocks because of the potential for future cash flow. He also said he expects higher than normal market returns, making these a good investment opportunity.
Unlike other investors, Gabrail said he does not choose his investments based on personal feelings. This is true both of stocks and real estate.
“I am location agnostic for my real estate deals and industry agnostic for my stocks,” he said. “Most people invest in companies they love and real estate they love. That’s a great way to do poorly in investing.”
Commodities Like Gold and Silver
As many financial experts will tell you, a big part of a successful investment strategy is portfolio diversification. But it is also about adapting to the ever-changing landscape, being diligent and being smart with your spending.
“Apart from getting a head start by jumping in when everybody else is freaking out, or too skeptical to trust the potentials of a trading market, I have learned that the key to staying rich as a self-made millionaire in today’s economy that is filled with so [much] uncertainty is spending less than you earn, and investing more than you splurge (especially on non-essentials),” said Tim Hastings, who’s also an active investor and general manager of Top Rated Law in Texas.
As for what he is investing in, he’s also got a few things going.
“Well, apart from focusing on index funds and dividend-paying stocks, another investment I am seriously considering venturing into in the latter half of this year is in gold,” he said. “Based on my findings, investing in gold is equally as lucrative as investing in the real estate market. By investing in commodities like gold and silver, I would be protecting my funds against deflation, and putting myself in a corner where inflation only works to my advantage, and not the opposite.”
Generally speaking, gold keeps its value even in periods of major inflation. Given the volatility of certain other investments — like stocks — this can be a smart way to mitigate risk. It’s not the only option to reduce risk and maximize returns, however, but it can be a good addition to an already diversified portfolio.
More From GOBankingRates
This article originally appeared on GOBankingRates.com: I’m a Self-Made Millionaire: 3 Investments I’ll Make in the Second Half of 2024
