INVESTOR’S TIPS: Where does my money work best?
It can be a real challenge to figure out where to invest money. Certainly, there’s a lot of information available in this digital era. So, it can be overwhelming to have too many options, isn’t it? Below you will find everything you need to know to start investing and where are the best investment avenues, that will allow you to be financially ready for the future.
Remember this first:
Investing is not a get-rich-quick strategy, but rather a way to methodically grow the capital you already have. The good news is, although investing is a way to grow your capital, you don’t need to have a lot of money to put your shoulder on the wheel. Even small amounts of money can be turned into huge fortunes over time, provided you go along with the right investment options.
Where Should You Invest Money?
When determining where you should invest your money, you’ve got a lot of options. The most common are:
1. Stock Market:
The conventional and arguably most valuable place for an investor to put their money is into the stock market. When you buy a stock -whether privately owned or publicly traded-, you will then own a fragment of the company that you bought into.
Depending on how many stock shares you hold, the company will pay you a percentage of those dividends once the company profits. When the company’s value increases over time, so does the price of the shares you hold, allowing you to sell them for a profit at a later date.
If you buy a bond, you are basically lending money to either a company or the government (this are usually issued by the US government for US buyers, although you can buy foreign bonds as well).
Then, the state or company that issued the bond to you must pay your way the interest rate on the “loan” over the lifecycle of the bond. Usually, bonds are considered less risky than stocks, but their return value is also much smaller.
3. Mutual Funds:
Instead of buying a single stock, you can buy a set of stocks with one transaction thanks to mutual funds. A mutual fund manager typically selects and manages the stocks in a mutual fund.
But here’s the downside:
If you invest in mutual funds, the mutual fund managers will charge you a percentage-based fee. Most of the time, when investing in mutual funds, this fee can make it difficult for investors to beat the market.
4. Savings Accounts
By far, putting your money in a savings account and allowing it to collect interest is the least risky way (and probably the worst way) to invest. As you know, low risk means low returns. The risk of putting your money into a savings account is small, and there are generally marginal returns.
Nevertheless, saving accounts play a role in the investing world because they allow you to store risk-free and relatively liquid capital that you can use to invest in other avenues and be prepared when a recession hits.
Where to Invest and Get Good Returns?
There’s a company that could actually become the single most desirable business opportunity for you. Having gone through all valuation methods available and coming off as a solid and promising project. This one company aims to redesign the financial world through a differentiated and innovative new asset class with intrinsic value that’s also highly liquid, pays annual dividends and its integrated within a global crowdfunding, trading and banking ecosystem.
Here’s the deal:
This company is a fintech consortium that has created this new asset class that acts as privately owned shared with the liquidity of a publicly traded one. Is in these types of projects where you’ll frequently find the kind of visionaries that can actually back their ambitions and make them a reality. If you want become one of them and learn more about this once-in-a-lifetime investment opportunity click on the link below!