Ordinary people usually do not think about investments very often, but every once and a while – they receive some larger amount of money, and then they start considering possible investment options. At first, the situation may seem simple – “go for the stock market”, your friends and family will tell you, even though they take no risk and the money has nothing to do with them. Admittedly, stock market offers a great area for investments, with a whole range of possibilities. Mutual funds, bonds or actual individual stocks are a good way to increase your wealth, and if you have a good adviser – your money can grow to amazing heights. However, the stock market is notorious for its highly volatile nature, and constant ups and downs are an integral part of this world. People who do not have the nerves to follow all those changes should stay away from the stock market, and luckily for them – there are multiple alternatives, all offering a good investment opportunity.
For example, real estate is a perfectly good solution for people who want to have their money invested in actual physical commodity, and real estate offers various options for investment. You could invest in a rental property, and then have an active involvement in the growth of your investment by monitoring tenants, performing maintenance, etc. On the other hand, if you do not need or do not want additional obligations, your money can be invested in a real estate investment trust (REIT), which provides you with the opportunity to increase your money by just watching “from the sides”.
Also, gold and silver are a good option for people who like to take a riskier approach to investments, simply because these precious metals can give a huge return on your investment, but they can be equally “damaging” to your overall bank account. In recent years, the prices of gold have gone up, but many experts will tell you that this is a highly speculative investment opportunity and that you should always think twice before making such a step. Antiques and art are similar since their prices fluctuate in unpredictable ways, but collectibles can give a huge return “in the long run” if you manage to find and buy something that will be appreciated after a certain period.
When it comes to relatively safer ways of investing, certificates of deposit (CDs) are a secure way of having your money grow over time. When putting your money under a CD, your principal is protected, but the downside is that the interest rate will be slightly low. However, if you decide to use the famous “CD ladder” method – this way of growing your funds can yield positive results. Also, investing in yourself is a “safe bet”, simply because you are the most important asset that you can have, and developing your skills, education or efficiency and time management will bring numerous rewards in the long run. Once you become a better version of yourself – your market price will grow, and this means that your investment return will be amazing.Read More