Why Not Invest? The 5 Best Investments Cheat Sheet
With the shaky state of Social Security these days, many Americans cannot expect it to provide them with the money they need when they retire. If you want to ensure that you are taken care of in old age, then you need to do your best to make sound investments that will provide you with a nice stream of income as you age. Here is a look at five smart investments you can make to start building your nest egg today.
1. Investment Properties
One of the smartest investments you can make is to buy property. Whether you are buying land, houses, multi-unit dwellings or commercial properties, real estate investment is always one of the soundest investment strategies for long-term success.
2. Bonds
Bonds are not the sexiest investment option out there, but they are definitely one of the soundest. Smart investors will always ensure that they have a portion of their portfolios invested in bonds. Bonds are not just issued by governments. They are also issued by corporations that are looking to raise money. This is a great investment avenue for those who want to minimize their risk.
3. Stocks
When most people think of investments, the stock market is one of the first things that jumps to mind. This is for good reason. Investing in stocks has been repeatedly proven over the years to be one of the most powerful ways for investors to achieve long-term success building their capital. If you want to succeed investing in stocks, make sure that you minimize your fees for transactions. Also, be sure to mix up your stock portfolio to include stocks of many types, including both high and low risk stocks.
4. Mutual Funds
The vast majority of people who are currently investing have a mutual fund or two in their portfolios. They are a fairly safe investment vehicle, but they can be heavy on the fees charged by brokerage firms to manage them. Look for low-fee mutual funds.
5. Real Estate
When looking for a sold investment that will yield solid returns quickly, real estate is always a great option. The professionals from Binswanger Hectare recommend finding the right type of investment for what you can afford and handle the upkeep for. But the rule of thumb is the larger the investment the larger the pay off.
6. Immediate Annuities
An immediate annuity is issued by an insurance company. When you deposit a lump sum into a annuity, you are guaranteed to get a monthly income for the rest of your life. If you die before the amount you paid into the annuity is used up, the insurance company gets to keep the difference. On the other hand, if you live past the time the annuity income is paid out, the insurance company will continue to give you monthly payments for the rest of your life.
The key to being a successful investor is to diversify your holdings. You should try to include as many different investment vehicles as possible to minimize your risk of losing all of your investment assets. These five investment avenues are a great place to start.
Share this:
Category: Investing
