Free Wealth Management Guide Investing Proceeds From the Sale of Farm or Ranch | Page 10

plan and having the patience and discipline to stick to
your plan will likely increase your chances of having a
successful investment experience.
Inflation can have a devastating effect on your future
lifestyle. If your investments do not keep pace with the
rising cost of living, you risk running out of money or facing an ever-decreasing standard of living. Having investments that keep pace with inflation can help you maintain
the lifestyle you desire in later years. If you are able to
tolerate the volatility of investing in real estate and the
stock and bond market, you are likely to accumulate more
wealth over time than investing only in certificates of
deposit.
Asset allocation is the process of dividing your investment dollars among stocks, bonds, real estate and cash.
Your choices of which asset classes to invest in and how
you divide your money among those asset classes are the
most important investment decisions you will make.
There are many types of investment vehicles today that
allow you to invest in multiple stocks, bonds and real estate properties for a very low fee. Mutual funds, exchange
traded funds and Real Estate Investment Trusts (REITs)
are three effective investment vehicles for building a
diversified investment portfolio.
There are many different approaches for distributing
income from your investments. How much income you
distribute each year and how you make those distributions can have a big impact on how long your money will
last. A strate