By Raymond James
When it comes to getting rich, the trick is balancing risk versus reward in your favor. You can do this by understanding an investment vehicle or by doing research on recent trends. You can also decrease risk by investing in time-proven vehicles that produce significant return over either a short or lengthy duration. Finally, you can decrease risk by following the advice of a trusted or certified advisor. Doing so will allow you to consider the downside of certain opportunities while considering the upside of others. Of course, it is critical to educate yourself on how to invest as the final decision is yours. If you do not understand the risks, you will not be able to avoid the consequences when the market and all your investments plummet.
Gold continues to be a premium investment that steadily climbs upward. In terms of overall value, it will likely increase over time. However, to obtain the maximum return, you should treat this as a long-term opportunity by holding it for five to 10 years in order to take advantage of the most lucrative price increases.
Bitcoin has made millionaires of many digital investors. That said, it is a speculative investment. As such, you should only invest money you are willing to potentially lose. In terms of holding time, the increases come at a rate of every two to four years. In terms of future value, one bitcoin is projected to eventually be worth $500,000 or more.
In terms of proven vehicles to make you rich, mutual funds are relatively safe investments. They balance risk across multiple industries or stocks, helping you to average out the losses and the gains. As with other stock-related investments, mutual funds should be considered a long-term investment.
4. Residential real estate
Whether you buy a home to live in it or buy one to flip, residential real estate will generally prove profitable. However, it is important to obtain experienced representation prior to buying. If you locate some Brisbane based buyers advocates, you will be able to receive quality representation for that initial purchase or for repeated ones. Such agents help you negotiate the best prices while helping you to identify obvious and hidden pitfalls that often come with investing in real estate.
5. Commercial real estate
Commercial real estate will prove profitable if you plan on selling it or leasing it. In fact, commercial real estate can provide among the highest profit-to-square-foot returns of all types of real estate. That said, it can often come with high taxes, so it is important to have representation by an agent able to steer you to profitable properties.
6. Fractional real estate
Buying in as a developer for a building to be used as a timeshare can help provide ongoing monthly maintenance fees as well as increased equity over time. Additionally, owning a fraction of a property provides you with the ability to always have a top vacation spot when you need to retreat from the world.
7. Certificate of deposit
For guaranteed rates of return, the certificate of deposit (CD) is proven. You can hold it for 18 months or longer. However, the best way to make money is by investing fairly large amounts of money. Additionally, you will want to roll your profits over to benefit from compound interest.
An REIT is a trust that invests in such things as apartments, storage facilities, or hospitals. This vehicle can provide you with superior dividends, which can then be rolled over. An REIT is similar to a mutual fund in that the overall portfolio will be spread across multiple businesses. An REIT focuses entirely on real estate, and it will usually pay steady dividends.
9. Municipal bonds
Municipal bonds represent the ability to invest in bonds guaranteed by a city. They once were nearly guaranteed to provide a profit. However, some cities have actually declared bankruptcy. That said, municipal bonds still represent a highly profitable and safe way to invest because cities typically do not go under.
Although you cannot become a bank, you can engage in lending to other individuals. This is known as peer lending, and you can review applications, credit scores, and the amounts being requested. After you select someone to lend money to, you will begin to receive a monthly payment with appropriate interest.
About the Author
Ray is a sought after thought leader and an expert in financial and money management. He has been published and featured in over 50 leading sites and aims to contribute articles to help novice financial planners. One of his goals is to impart his knowledge in finance to educate and help ordinary people create and achieve their financial goals.