What comes to mind when you hear the term investment? It conjures lots of images from the New York Stock Exchange to those who have more wealth than you, an average earner. However, this is far from the truth.
When investment is made well and a sure way to grow your hard-earned money, investments can cushion your future lifestyle. Assets can be done and accessed virtually regardless of your career path or age.
However, many factors will influence the path or investment choices you take at this particular point. For example, an older adult whose close to retirement with a healthy money pool will make a different investment plan than someone who starts with minimal or no savings.
Young people and older adults should not fear investing. They should choose good investment plans under their circumstances.
Here are four investment ideas to keep in consideration. Please keep in mind that a lower risk typically means lower returns in investments.
High-Yield Savings Accounts
Cash management and online savings accounts provide better rates of returns than in traditional banking systems. Cash management accounts, just like account-checking accounts, offer interest rates similar to saving funds. However, these accounts are usually provided by brokerage firms and come with checks or debit cards.
High-yield accounts are the best for short-term savings or occasional emergencies. In this kind of account, you can access your account more flexibly than a rigid savings account. You can open a savings account online since they have lower overhead costs and better rates than the traditional banking system. You can check some high-yield options here.
Certificates of Deposit
As they are famously known, CD accounts are federally insured accounts that offer a fixed interest against your savings. Certificate deposits offer a claim against the stipulated amount, and you will require a selected date in the future, for example, a trip or down payment to a wedding.
Common ones range between three years and five years. If you are trying to increase your money for a specific project safely, CDs can be a good option. However, it’s good to notice that there is a fee to be paid. It’s also good to read between the lines in a CD account and don’t invest the money you need so soon.
CDs are based on the length and reasonable rates found in online banking systems and credit unions. The best CD rates are on account of minimums and size of saving time.
Money market funds
This method is becoming a popular bet for many. Money markets are products that you invest your money in, and it attracts a short-term government-corporate or bank debt. Money market funds shouldn’t be confused with money market accounts.
Money market funds are high quality and very flexible in terms of withdrawal and availability to clients. MMFs are suitable for the money you are willing to risk to markets. Investors in financial institutions use a portion of the money market funds to hold their portfolios in a better investment than volatile stocks.
It is also a clever way for someone looking to save up money for future investments. Even though Money market funds might look like an intelligent way to put away money, do not expect high yield savings.
You can purchase Money Market funds from a mutual fund broker, bank, or provider. However, online also provides a wide array of discounts.
Real Estate
In the past real estate involved buying, owning, collecting, and selling it later for a profit. However, there are different other ways of investing in real estate hands-off without owning any property. A common way of doing this is to use real estate investment trusts or REITs. These companies offer their clients a chance to join the real estate venture. A 721 exchange is a great way to get into investing in the world of real estate.
This kind of investment is suitable for people who have a large sum of savings and are looking to diversify their portfolios further or take more risks to get high returns.