4 Real Life Story Examples of Successful Investment Strategies
Successful investments aren’t reserved for tech giants and financial wizards with billions of dollars in capital (think Warren Buffet, Jeff Bezos or Steve Jobs).
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Sometimes, the best investment stories come from everyday people like you and me — retirees who made the right move with their pension and 401(k), a local guy who turned a hobby into a thriving business, and an entrepreneur with a burning passion for helping their community prosper.
These are the real stories that inspire us and make the metaphor of the “American Dream” a reality regardless of social standing or status.
Whether you’re thinking of launching a business you’ve been dreaming of or seeking the advice of a financial advisor, these four real-life story examples of successful investments could give you the nudge you need to put your financial future in motion.
Pickleball Equipment Business Investment Grew 31% ROI in Just 3 Months
“One of my most successful investments was in my own pickleball equipment business,” said Michael Chien, CEO/Marketing Director of 101 Pickleball.
“After identifying the rapid growth of pickleball as a sport, I decided to channel my passion and savings into creating high-quality paddles and accessories; “initially, I bootstrapped the business, using funds to design a line of paddles that stood out in performance and aesthetics,” Chien said.
He invested around $8k-$10k into the pickleball equipment business, focusing on inventory, website development, and marketing.
“In just three months of operation, we’ve seen encouraging growth. Our revenue has already started covering costs, with an approximate return of 31% on the initial investment.”
“The real turning point came when I invested in Shopify to scale my online sales, along with strategic digital marketing campaigns on social media; this combination led to significant sales growth, exceeding expectations within the first year.”
Focusing on product quality and leveraging e-commerce, Chien’s investment continues to yield strong returns while also fueling his passion for fitness and business, he said.
“The demand for pickleball gear, particularly our paddles, has been stronger than expected, and we’re now working on scaling through increased marketing efforts and product expansion.”
“While it’s still early, the positive reception and steady sales have reinforced our confidence that this venture has long-term potential for a significant return on investment.”
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Financial Advisors Saved Client Nearly $10,000 in Taxes In 401 (k) and pension
CEO and Founder of Retirable, Tyler End, told GoBankingRates how his company, which specializes in financial planning for retirees, helped their client John, save $7-8k on his taxes.
John met with Harrison, one of their senior financial advisors who is a Certified Financial Planner, over Zoom.
“He was only three months away from retirement; he had a 401k and a pension. Harrison initially spoke with him about making the right selection on Social Security,” End said.
“John correctly planned on waiting until age 70 to maximize his income from Social Security; however, in conversations, Harrison made two impactful changes.”
John was in the process of taking his pension as a lump sum and depositing it in cash to his checking account to use as income until his Social Security payments kicked in.
“His 401k was solely invested in large cap US stocks, but he was going to convert them to the ‘stable’ investment fund in his 401k plan because, after Covid, he wanted to make sure to protect his retirement savings from the stock market.”
“First, we helped John mitigate taxes by rolling the small pension over to an IRA rather than his checking account. This allowed him to save thousands on taxes when he retired.”
Harris then rolled John’s 401k into an IRA and used a bucket strategy, which involved using a stable fund for the money he needed while he waited until he received Social Security. The company invested the rest of his money in a growth fund.
“Since John’s retirement, his growth fund has [increased] his net worth significantly, [returns he wouldn’t have seen] if he hadn’t worked with a professional advisor,” said End.
“We continue to assess the right asset allocation for John, who said he couldn’t be happier and feels secure in his retirement income.”
Sarah Doubled Her ROI By Investing In Real Estate During Covid-19
Sara was looking for a smart way to invest the inheritance she received from her parents.
“I wanted to invest in something low risk that would grow over the long term and appreciate in value well into my retirement.”
“I’ve heard so many stories of people squandering their entire inheritances away on lavish trips and an expensive lifestyle within a year or two with nothing to show for it,” Sarah said.
In her 50s, Sarah decided to buy a condominium in a retirement community for cash. She made some upgrades to increase the value and make it more in line with her personal tastes, she said.
“I hired contractors to rip out the carpets and replace them with laminate flooring; I installed new kitchen cabinets and countertops, an over-the-stove microwave and bought stainless steel appliances and hardware that were in high demand.
“To open the space, I had a contractor knock down the kitchen wall.”
Sarah said she invested in living room furniture because she lived in a furnished rental before buying her condo and needed a couch.
She brought some pieces she owned and had inherited from her parents to maximize her savings and minimize spending.
But renovating during COVID-19 was far from easy, said Sarah; there were many challenges and delays. However, house prices skyrocketed in one or two years, and her home’s value doubled.
“I’m totally confident that buying my condo was the best investment I could have made with my inheritance.”
Niche Venture Capital Firm Closes First Fund at $15 Million
In 2021, Carrie Colbert, Founder and General Partner of Curate Capital, a venture capital firm dedicated to investing in women by women, said she wanted to support female-led companies to amplify their success.
In 2022, she and her team celebrated a massive win after closing their first fund at $15 million. Fifty percent oversubscribed, with nearly 80% of investors being women, including influencers with over 10 million followers.”
As an influencer herself, Colbert said she realizes the power of influencers as investors as she’s been a pioneer of the #influentialinvesting concept. Curate Capital plans to launch its second fund in 2024 to maintain the momentum of its first fund’s success.
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This article originally appeared on GOBankingRates.com: 4 Real Life Story Examples of Successful Investment Strategies
