Shark Tankstar Kevin O'Leary: All of my secret tips to get rich … of one million dollar 401k

The world markets are at a time of volatility, since President Donald Trump fulfills his election mandate by re -negotiating the trade agreements on America, ending foreign wars, which decreases US bureaucracy and concludes wasteful state expenditure.

This makes all the critics of the President and some investors nervous. But do not believe that these doom-and-gloomers who predict an economic downturn and worse recession.

I remain very optimistic about the American economy because there are enormous potential residues for the Trump agenda. That means there are also reasons to deal. Inflation ran hot in January and the Federal Reserve may not lower interest rates as quickly as expected.

Nobody knows what will happen tomorrow. So make the best decisions with your money you can do today.

Here is my proven guideline for navigating in a volatile market, while expanding your prosperity, protecting yourself from fraud and planning comfortable retirement.

Counterchaos

One of the largest unknown roiling markets today is Trump's trade war. He has delayed the introduction of taxes against Canada and Mexico by March 4, while new tariffs against China are already in force.

In general, tariffs have an inflationary impact, but I believe that Trump's duties for foreign goods-if they will all be imposed-and will be short-term measures.

In fact, these tariff talks can be over within the next 60 days. But nobody can predict the future, so I use new cash that I generate in investments with little risk.

I didn't sell any of my stock positions, but I didn't add them either. Two weeks ago I bought 90-day financing calculations that are short-term bonds of the US government that mature in one year or less.

I will rate this position again after about three months. But for the time being, T-Bills offer higher returns (approx. 4.2 percent) than the traditional money markets.

About 10 percent of my stocks are parked in these safe accounts. The rest of my money is invested in more risky activities, but there is still a way to protect yourself from unforeseen events.

My 401k golden rule

If the average American 20, the 64,000 US they have a 1.5 million dollar -nesting for retirement.

In general, the money invested on the stock exchange will earn eight to 10 percent annually if the market has occurred in the past 200 years.

In addition, Trump has promised to keep corporate tax rate to 21 percent (President Joe Biden had threatened to increase him to 28 percent), and that will last bullish in S&P 500 results in the next 24 months.

But do not fall into the trap of the selection of certain stocks. Remember that most fund managers pursue the average annual market return below average. Instead, follow the golden rule of asset management – diversification.

The old rule of thumb was to keep 50 percent stocks and 50 percent relatively lower risk bonds. But I have changed my approach in the past two decades. I now stick to 70 percent stocks and 30 percent of bonds or cash.

I diversify my participations even further by complying with collections of stocks called ETFs or stock exchange. Some ETFs pursue entire market indices such as S&P 500, Nasdaq or Dow Jones.

Crypto is not crazy

Cryptocurrencies have long been seen as risky investments. And in the early days of crypto, many investors were injured by wild swings and the dramatic November 2022 of the crypto exchange FTX.

Crypto is certainly not for everyone. Now that the governments exercise the regulatory supervision of the cryptoma markets (Trump has appointed the entrepreneur and tech investor David Sacks as the first crypto tsar in the country), Crypto is always reasonable long-term investment.

Bitcoin – in addition to gold – is now a core that captures in my account (it is 5 percent of the total number).

Although Bitcoin is still volatile, it is in a limited supply, which means that it is not affected by inflation pressure like other currencies.

The biggest question for crypto investors is the exchange where you can store and manage your crypto. I use Wonderfi for whom I am a strategic investor. I also use Coinbase, which now follow the money transfer of the US government, anti-money laundering and consumer protection laws and provide tax receipts.

However, experienced business people are always looking for fraud. And that is vigilance that should be used in all its fiscal affairs.

Get two credit cards

Everyone should keep two credit cards. A card should only be used for online purchases, and it should have a relatively low credit limit – e.g. B. 2,500 US dollars.

The reason for this is simple.

Online shopping is naturally risky, and there is a possibility that a cyber deep will try to steal your credit card in the course of your life and to provide large bills in your account. However, you can control your potential theft exposure with a credit limit.

Use the second card for all other purchases and create your creditworthiness. This card should have a higher credit limit, e.g. B. 5,000 US dollars.

Fish at least 50 US dollars on the map every month and pay them off complete every salary time without exception.

Credit agencies use algorithms to determine credit scores, and it is only the question of whether they pay off their credit. The amount you spend is irrelevant.

It is important to determine a good creditworthiness, since this rating determines the conditions of the loans that are ready for banks.

If you have a high creditworthiness, you see financial institutions as a responsible borrower who deserves a relatively low interest rate. Barrigers with bad loan scores are considered risky – and lender compensate for this risk by calculating higher interest rates.

Teach this lesson to your friends and family. You will thank you for this. And if there is a significant other in your life, there is another rule that you can adhere to.

Say 'I do' to a prenup

The reality is that financial stress, not infidelity, is the main reasons why marriages fail.

No, this is not a romantic advice, but it is necessary. And even if you don't get married and live together, sign a prenup!

A marriage agreement forces each person in a relationship to disclose their assets, their assets and their liabilities. It is important to know how your future spouse or partner deals with money. And if your romantic interest is not ready to talk about your financial past, this is a huge red flag.

A prenup effectively removes the fiscal fear of the stress factors in a relationship. And in the event that the union fails, there is no risk of losing your hard -earned money, since the agreement determines how the assets are shared in the event of a split.

Marriage does not mean that you have to sacrifice personal sovereignty.

In fact, you should also keep separate credit cards and bank accounts. Couples can define common accounts for everyday expenses – but do not fully give up their financial independence.

When it comes to the family, money can either strengthen or destroy bonds.

Be careful-especially when it comes to in-laws.

Never give loans to their family

I had very happy in my life and as a result, family members came to me to ask loans for their investments and business companies.

But of course there is no safe bet, and eight of 10 start-ups fail. What happens if you cannot pay back the money you borrowed? I never want to be put into this situation, which is difficult to harm a relationship.

So my unbreakable rule is never to borrow money from the family. Instead, I give it with the understanding of the recipient that you do without your right to ever ask for money again.

If you follow this proven advice, you will probably retire comfortably and avoid the pitfalls that can derail your financial security.