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Investing in any asset requires some level of risk. But having the right mindset about managing this risk over time is key, given the increased market volatility we’ve seen of late.

In order to weather these market storms, Bill Gates and other prominent investors have found that keeping cash on the sidelines is a safe bet.

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In fact, one of the most prominent pieces of advice associated with the cofounder of Microsoft is a simple maxim: “Save like a pessimist, but invest like an optimist.” This financial wisdom, which was distilled by CNBC in 2021 from various interviews with the billionaire over the years (1), stands true to this day.

Currently the 19th richest person in the world (2), and atop the Forbes rankings for the majority of the past three decades (3), Gates knows a thing or two about how to not only grow one’s wealth, but also how to hold it over time.

Here are a few foolproof tips gleaned from the tech mogul for investors looking to do the same.

From the earliest days of Microsoft, Gates was vigilant about keeping a 12-month cushion of cash in the bank to help the company stay solvent if no revenue came in, he told Ellen DeGeneres in a 2018 interview (4).

“I always had to be careful that we wouldn’t hire too many people,” he said. “I was always worried because people who worked for me were older than me and they had kids. And I always thought, ‘What if we don’t get paid? Will I be able to meet the payroll?’ So I was always very conservative about the finances.”

While you probably don’t need to store up an entire year’s worth of essential expenses — experts say three to six months’ worth is a good target (5) — a rainy day fund can help you prepare for the unexpected.

If you’re looking for a way to build your emergency fund, a high-yield account like a Wealthfront Cash Account can be a great place to grow your uninvested cash, offering both competitive interest rates and easy access to your money when you need it.

A Wealthfront Cash Account currently offers a base APY of 3.30% through program banks, and new clients can get an extra 0.75% boost during their first three months on up to $150,000 for a total variable APY of 4.05%.

That’s 10 times the national deposit savings rate, according to the FDIC’s March report (6).

Additionally, Wealthfront is offering new clients who enable direct deposit ($1,000/mo minimum) to their Cash Account and open and fund a new investment account an additional 0.25% APY increase with no expiration date or balance limit, meaning your APY could be as high as 4.30%.

With no minimum balances or account fees, as well as 24/7 withdrawals and free domestic wire transfers, your funds remain accessible at all times. Plus, you get access to up to $8M FDIC Insurance eligibility through program banks.

Read More: I’m almost 50 years old and don’t have retirement savings. Is it too late?

Gates’ overall strategy can be boiled down to another important maxim: Long-term investing gives you more protection from market fluctuations and the power of compound interest.

Private commercial real estate, which typically refers to multifamily or business-occupied properties, has a long history of adding stability to investors’ portfolios, outperforming the S&P 500 over the long term (7) — so it’s no wonder that real estate accounts for nearly 25% of the typical family office’s portfolio (8).

If diversifying into multifamily and industrial rentals appeals to you, you could consider investing with Lightstone DIRECT, a new investing platform from the Lightstone Group, one of the largest private real estate companies in the country with over 25,000 multifamily units in its portfolio.

Since they eliminate intermediaries — brokers and crowdfunding middlemen — accredited investors with a minimum investment of $100,000 can gain direct access to institutional-quality multifamily opportunities. This streamlined model can help reduce fees while enhancing transparency and control.

And with Lightstone DIRECT, you invest in single-asset multifamily deals alongside Lightstone — a true partner — as Lightstone puts at least 20% of its own capital into every offering. All of Lightstone’s investment opportunities undergo a rigorous, multistage review before being approved by Lightstone’s Principals, including Founder David Lichtenstein.

How it works is simple: Just sign up with your email, and you can schedule a call with a capital formation expert to assess your investment opportunities. From here, all you have to do is verify your details to begin investing.

Founded in 1986, Lightstone has a proven track record of delivering strong risk-adjusted returns across market cycles with a 27.6% historical net IRR and 2.54x historical net equity multiple on realized investments since 2004. All told, Lightstone has $12 billion in assets under management — including in industrial and commercial real estate.

As such, even if multifamily rentals don’t appeal to you, Lightstone could still serve you well as an investment vehicle for other real estate verticals.

Get started today with Lightstone DIRECT and invest alongside experienced professionals with skin in the game.

Real estate isn’t the only way to diversify your portfolio and invest like an optimist — there are other asset classes worth considering.

One such asset has posted positive returns over the last two decades, highlighting strong long-term investment potential. And with its moderate relationship to traditional markets, this alternative investment could help protect against inflation, especially amid recent economic uncertainty surrounding the Iran war.

It’s no surprise that this asset has long been favored by the ultrawealthy as a resilient and lucrative addition to their portfolios. With an estimated value of over $2.5 trillion — projected to reach nearly $3.5 trillion by 2030 — it represents a massive asset class, according to the 2025 Deloitte Private and ArtTactic Art & Finance Report (9).

You might be surprised to find out this asset is fine art.

Until recently, this world was off-limits. Now, with Masterworks, you can buy fractional shares in multimillion-dollar works by icons like Banksy, Picasso and Basquiat. While art can be illiquid and typically requires a long-term hold, it offers unique portfolio diversification.

Masterworks has sold 27 artworks so far, yielding net annualized returns like 14.6%, 17.6% and 17.8%.*

Moneywise readers can get priority access to diversify with art: Skip the waitlist here.

*Past performance is not indicative of future returns. Investing involves risk. See important Regulation A disclosures at Masterworks.com/cd.

While working toward ambitious goals (and having an optimistic outlook for the future) is important, it’s also wise to put some worst-case scenario plans in place to help you manage the difficult times, like Gates has done.

If you need advice on preparing for the lean times — or how to put your ambitious investment goals into action — a financial advisor can help crunch the numbers and build a plan that works.

But hiring an advisor can be a lifelong commitment, which might make or break your retirement. Finding reliable advisors is crucial — and that’s where Advisor.com can help. The platform connects you with an expert near you for free.

Advisor.com does the heavy lifting for you, vetting advisors based on track record, client ratios and regulatory background. Plus, their network comprises fiduciaries, who are legally required to act in your best interests.

Just enter a few details about your finances and goals, and Advisor.com’s AI-powered matching tool will connect you with a qualified expert best-suited for your unique financial goals and preferences.

Finding the right advisor isn’t always easy — there’s no one-size-fits-all solution. That’s why Advisor.com lets you set up a free initial consultation with no obligation to hire to see if they’re the right fit for you.

Most Americans earn a dismal 0.39% APY on their cash at big banks. Unlock 4.05% APY and pay $0 in account fees instead with a Wealthfront Cash Account

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We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

CNBC (1); Forbes (2), (3); @TheEllenShow (4); Fidelity (5); FDIC (6); Investopedia (7); Knight Frank (8); Deloitte (9)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.