First of all: This is not financial advice, but my personal opinion based on my personal experience.
two strategies as a proposal:
a.) a broadly diversified portfolio of stocks, bonds, REITs, commodities, ETFs, etc.What is important here is not so much the selection of individual securities, but the asset allocation (i.e. the weighting of the individual assets in your deposit).You would always have to keep this around all circumstances (e.g. through regular,annual re-balancing).You wouldn’t be doing badly financially in the future. The great advantage of this portfolio is that different asset classes have different correlation factors.For example, the value of bonds usually rises when equities fall in value. On this topic I can recommend in particular the book by William J. Bernstein, The Intelligent Asset Allocation: How to Create Profitable And Hedged Portfolios: Amazon.de: William J. Bernstein: Books.The author presents the advantages of long-term investments in broadly diversified portfolios. This book even lists scientifically proven portfolios that are very easy to replicate/form. Great recommendation!
Advantage of strategy a.): A properly diversified portfolio will be highly likely to give you (provided you haveregular re-balancing)an average annulated return (afterinflation) of approx.5-7%.
b.) a dividend strategy.I personally do the same. You could primarily invest your assets in companies that are particularly high-paying, i.e. that pay high dividends as regularly as possible.In particular, shares or REITs are suitable for this purpose.REITs are similar to real estate funds and have been used in the US for decades to generate additional income streams or to provide retirement provisions. I wrote on my blog: http://Finanzen-Einkommen.de an article about this asset class: REIT – The Smarter Real Estate Investment – Financial Income.Have a look at this post! I look forward to your feedback. In addition, I can recommend the following book: Stay cool and collect dividends: Get out of the.It is very entertainingly written and includes a class strategy to build up a good passive income via dividends.
Advantage of strategy b.): You can build up an additional (passive) income.In theory, you can also reinvest the dividends every time in dividend-paying companies. So you could even increase your income over time.
If you want to deal with the topic of finances deeper and long term, I can recommend my blog.I write about topics such as saving, investing and generating additional (passive) income. My blog is: www.Finanzen-Einkommen.de.
If you have any further questions, please feel free to contact me.