Most people find “investing” to be quite scary, especially if you don’t have sufficient money to spare at the end of each month. As we’re all aware, all types of investments carry an element of risk. As such, it’s wise to seek out those low-risk opportunities but with reasonable profits.In order to make an investment safe, it’s best to go for the time-tested “top dog” where the return on investment (ROI) is from moderate to high.Types of investments you may consider:1. Bonds. Investing in bonds is generally safer than investing in stocks. This is because investment in stocks doesn’t come with a guaranteed ROI, whereas a bond is something like a loan and has a promised ROI, plus interest.- There is a distinction between guaranteed and promised. In fact, there isn’t an investment that’s guaranteed. However, with bonds, you know what you’ll be getting at the end of the day. Seek out investments in a company with a proven track record as it’s less likely to go bankrupt.- Bonds are normally paid back to you by year-end. Though, the payment terms can vary from one agreement to another.- The bigger is your bond, the bigger is your profit. But bear in mind, you’ll be making more money on a higher interest bond. So, it would be better for you to invest your money in one high-interest bond instead of multiple low-interest bonds.2. Stocks. As mentioned above, there is an element of risk when investing in all types of investments, but for stocks, the ROI will be higher. Of course, you can cut down your risks by investing in safer or defensive stocks.- Companies like Kentucky Fried Chicken (KFC), The Procter & Gamble Company (P & G), Johnson & Johnson (JNJ) and Wal-Mart Stores Inc. (WMT) are among the safer picks in the stock market. These companies also place higher value on their shareholders’ positive return of dividends.- Investing in defensive stocks that are reliable and have a proven record of their sustainability and profitability gives some security that you wouldn’t get when investing in the newer and lesser-known companies, which can wind-up at any time.- Bear in mind, there are no one hundred per cent safe picks when investing in stocks, but you can lower your risk by going for stocks of a time-tested and profitable company. Alternatively, you can spread out your risk by investing your money in profitable and time-tested mutual funds where your ROI will be based on a part of a whole portfolio of stocks.- Stocks can be a better pick for your long-term investment plans. If you’re an investor who can’t afford to take higher risk, go for a long-standing profitable company to place your investment.3. Multi-family dwelling property. The right time to invest in a multi-family dwelling property will be during a housing meltdown. You’ll then find many multi-family dwelling properties going below market prices.- A multi-family dwelling property is a more secure investment than a single-family one for the simple reason that it can house more tenants. Therefore, if one tenant chooses to vacate at the end of their agreement, you’ll still have other tenants being housed in other units that are still giving you monthly income.- Multi-family dwelling properties give you a better return than single-family ones. For instance, if you have four units of 2-bedroom apartments and are renting them out for $600 each per month, you’re profiting $2,400 per month. Of course, your profit from a single-family one will be much lesser since it’ll be just from one tenant.Coming up with an investment portfolio requires patience and a sincere evaluation of the highest level of risk you can tolerate. Investing in properties is increasing in popularity in recent years. Having a fully tenanted multi-family dwelling property guarantees a monthly positive return even if you need to pay for maintenance and other charges from time to time.Bonds are a safer form of investment, but the return is, by far, the lowest. However, you can still find certain bonds in the market that offer higher interest rates. Though stocks give you a higher return, but you’re exposed to higher risk, and, moreover, the return isn’t guaranteed.A wise investment practice is to spread your risks and returns through a few investment portfolios where you have a few with lower risk and the rest with moderate risk. You should only partake in high-risk investments provided you have a high-risk tolerance threshold! By practicing this strategy, you should enjoy consistent and positive returns throughout the years.
Someone’s sitting in the shade today because someone planted a tree a long time ago. The tree is called INVESTMENT… When it comes to investment traditionally, investing or investment has been perceived as the chief source of finances of the rich people and has also been viewed as a minefield of opportunities to the inexperienced. For the reason that the western standards of living continue to improve, more and more individuals start to recognize the advantages investing can give even if they only have a small capital.The introduction to investment will help you explore a few basic principles to get you started the right way. Investing is defined by the Collins English Dictionary in the following manner; “To lay out, for profit or advantage.” Laying out means that something with worth or value is required initially to be able to make more money or generate wealth. In essence, placing your money in some sort of investments is a method of taking a predetermined amount of money and utilizing it in a way as to improve its original value, and as a result make returns.While the chief reason why you want to invest is to generate profit, the rationale behind your investment choices should be far more important since it will significantly affect how much returns you can obtain. Additionally, this will determine the risks level you are willing to face.The introduction to investment will help you build a well off nest egg for your retirement. Keeping this information in hand will also permit you to save for your child’s college expenditures, provide for a luxurious tour, or establish a financial safety net.One factor that you need to take into consideration is the amount of money at your disposal. It is critical to emphasize that investment undertakes many different forms and all of which set off dissimilar standards. A student may come to a decision to invest $50 while a businessman might place $1 million, but both will look for a return on their expenses and how they carry out their business plans and goals may differ considerably.It’s essential for you to understand that investing is different from saving. Saving and investment are two different scenarios dictate the productivity or profitability of your preferred investments. If you would like to invest to safeguard a financial future, you should be ready to manage the risks involved to secure higher return on investments. Note that investing will not permit you to withdraw your money instantly. On the other hand, if you just need to put aside some funds for a particular expenditure, you should only expect mediocre returns, though you are assured that your money is in a safe place and you can get it when needed.In general, investments are categorized as low, medium, and high. Investments with low risk include savings accounts and government bonds. Medium risk investments on the other hand include certain types of property or shares, while high risk investments are made up of shares from fast progressing and expanding companies exploring new markets.Before you invest, take advantage of online and offline resources that can provide you with introduction to investment. You can consult an independent financial expert or adviser to walk you through the entire process. The consultations are almost free of charge and you can acquire specific recommendations tailored to your requirements on investing.But before getting into the core subject of this writing let me state some basic categories of investment that exist in this financial world are:
Perhaps, by now you have a fair idea what investment is and know how about how it all works, remember, some say “money makes the world go round”, while others say ” Invest to harvest”, bottom-line being you should be really careful when making such decisions