How To Allocate Your Investments for Beginners

Jerry Fetta
5 min readMay 14, 2018

How should you allocate your investments? We all want to build wealth, and most of us understand that investing will be required. The problem is many of us don’t know what to invest in or how to invest it. I want to provide some insight on how to invest today so that you can make this work for your wealth.

What assets should you invest in? Income producing real estate and income producing businesses. If you’re just starting, you better have at least $50,000 you can invest. At the $50,000 level we are looking at very entry level real estate investments that are basically a sure thing or investments in your own business that are a sure thing. A “sure thing” means you have little to no risk of losing your principal and you know for certain the investment will produce an income. The priority with this first set of investments is for it to be as passive as possible so that it doesn’t distract you from your primary income source that got you to the point of investing in the first place. If you’re a qualified investor with $250,000 or more to invest, you can focus on slightly more active positions but still protect your focus on the primary income source. If you are accredited meaning you have $1,000,000 or more, then you can really open your options up. Today we will focus on what to do at the beginner stage.

1. What to look for. At the $50,000 level, to be honest, you’re still a baby. You have a very small amount of money when it comes to investing. You have enough to start, but not enough to get your dream investment. You’re looking for 3 things here. The first, is protection of your $50,000. You need to make sure that money cannot go anywhere. The second point, is a higher degree of passivity. This investment needs to pay you without taking your attention. Your energy and attention is what produced the $50,000 in the first place. This means, you need to go back and do whatever you did to get the $50,000. Meanwhile, this investment you make needs to just stay out of your way and pay you. Lastly, is income. The investment needs to pay an income. Realistically on $50,000, you’re lucky if you make $500/mo in cash flow on the high end. You aren’t going to make crazy amounts of income of an amount this small, but it is a start.

2. The real estate assets to scope out. You can invest in real estate or small business at this point. I’m not going to talk to you about stocks & bonds because you aren’t close to the level where should even consider messing around in the stock market and those assets do not meet the qualifications in the previous paragraph. With real estate, this is pretty much going to be a private lending play or a syndication play. Private lending is a debt position on a piece of income producing real estate. Syndication would be an equity or limited partner positon on income producing real estate. This is the most secure, but probably won’t produce more than an 8–10% annual return, which isn’t bad. Again, it is pretty much a sure thing type of investment.

3. The small business assets to scope out. With small business, you can invest in your own business, acquire another flow of income for your business, or lend to someone else’s business. The easiest is to invest in your own business. Control = income and this will provide you the greatest amount of control. However, there aren’t many scenarios where it is a good idea to drop $50k all at once on your own business; your business will be invested in gradually over time with smaller amounts. If you have $50k, the other thing you can do is buy out someone else who is struggling. Look at your competitors and find the ones who aren’t making it. If you know WHY they aren’t making it and how to fix it, offer to buy them out for cash. Many small businesses would love to have $50,000 come in all at once for a sale. This will be a mom and pop’s shop so you are looking to acquire their client base and that’s about it. Lastly, you can lend to another business in another industry. The most common version of this is called Merchant Cash Advance. Merchant Cash Advance is essentially a form of private lending to small businesses, secured by their income stream. It may pay you around 9%, but again, it doesn’t require your time and attention, it just pays you each month.

I help many of my clients start out as investors with these types of investments. I help them create a plan that tells us where to invest, then I help them look for and analyze the different investments, and finally I broker the transaction for them to ensure they win with their investments and that the returns live up to the numbers we need based on the plan we created. This holistic and comprehensive approach allows me to help my average investors secure 8–12% fixed annual returns on their investments. If you are a beginner and you’re ready to invest, and you’d like my help click here.

Own Your Potential,

Jerry Fetta

Grant Cardone Certified Coach

Jerry Fetta helps his clients make money, keep it, and multiply it.

He believes everyone should own their potential. He believes you were not created to spend 40+ hours per week serving the 40-year-to-life sentence trading your precious time for money just to live in mediocrity.

However, the truth is that time and money must be exchanged. It just doesn’t need to be you making the exchange.

Jerry helps his clients create wealth that exchanges time and money on their behalf.

His clients see a 30% increase in income, a guaranteed increase in savings rate, and 8–12% fixed annual returns on their assets in the 1st 90 days of working with him.

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Jerry Fetta

Jerry Fetta is the CEO and Founder of Wealth DynamX. Jerry’s mission in life is to help create millions of financially educated and wealthy families.