Whatever the case may be, it is important to understand not only the best types of investments but also whether you need professional advice along the way. To make this decision easier, keep these tips in mind.
High-Yield Online Savings Account
As a new investor, the last thing you want to do is lose your money right off the bat. To avoid this, many beginners start by investing in a high-yield online savings account.
Growing more popular each year, these accounts have low overhead costs and offer much higher interest rates than brick-and-mortar banks. There are a growing number of companies offering these types of accounts.
However, make sure that you consider the annual fees of these accounts. That way you actually make money on the account compared to losing out.
To review this number, consider the percent you get back compared to the amount you have in the account. That being said, this is likely a lower return investment compared to other options on this list.
S&P 500 Index Fund
When you decide to put money into the stock market, diversification is the key to a successful investing strategy. To accomplish this, beginning investors like yourself should consider investing in an S&P 500 Index Fund.
Featuring low expense ratios and annual returns that often exceed 10 percent, this is a great way for you to invest in the stock market with little risk. What makes this different from other stock options is that it is a portfolio of multiple stocks.
This helps ensure that your overall portfolio can stay up, even when some of the individual stocks go down.
Cryptocurrency
Though considered to be a somewhat risky investment, especially for beginners, cryptocurrency is looked at by wealth management professionals as having tremendous potential for very high returns.
For an investment where the value may fluctuate wildly, it is usually best to hire investment professionals to advise you on various cryptocurrencies and the best strategies to use when investing your money.
Rental Property
If you know anything about investing, you probably know many investors have made their fortunes in the real estate market. Should you want to do the same, consider investing in rental properties.
Since you can do so by purchasing residential properties, commercial properties, or a combination of the two, the possibilities for high investment returns are quite real.
If you decide to become a real estate investor, find an agent or broker whose advice you can trust. Since they will know the local market, they can help you find properties that fit in well with your investment plans.
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Hiring Someone Else?
One of the biggest reasons that people hire other people to manage their investments is because managing investments takes a lot of time and knowledge. Learning what investments are the best for your goals while also minimizing money loss due to this learning curve is often an impossible task. Thus, you can often save money in the long run by hiring someone else to do it for you.
In most cases, the person managing your investments is paid on a commission basis, meaning that the more money they make for you, the more they get paid. This works well since their goal will align with yours when it comes to making more money with your investments.
When choosing any of these investment options, make sure you have a good understanding of the risks involved. If you have questions, never hesitate to speak with investment professionals who will put your best interests first each and every time.
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