Stocks can be good for investing your hard-earned money. But did you know that your investment options are far beyond just stocks? When you do it responsibly by researching and reading reviews like simply wall street review, you will realise that investing is among the best ways to safeguard and grow your money. And today, technology has made most investment types simpler and accessible to practically anyone regardless of income, career, or age. But remember that considering such factors will greatly influence which types of investments fit you at this point.
Take, for instance, an individual nearing retirement with a healthy nest egg. Such a person is more likely to opt for a very different investment map than a youthful person who is just beginning their career with probably no savings. With that said, here are the three investment types that are worth your consideration.
Real Estate Investing
Traditionally, real estate investing entailed purchasing a property and later selling it for a higher price to make a profit. It also involved purchasing a property, owning it, and collecting rent as a fixed income form. Although this is still the trend to date, much has changed as far as real estate investing is concerned. Today, you can access multiple other far more hands-off means of investing in real estate.
Take, for instance, Real Estate Investment Trusts or REITs. REITs are firms owning income-generating properties like hotels, offices, malls, etc., and offer dividend payments regularly. Another common way is through Real Estate Crowdfunding Platforms that often pool investors’ funds to invest in real estate developments.
You may also want to consider the BRRRR method, which stands for Buy, Rehab, Rent, Refinance, and Repeat. This method involves buying an undervalued property, renovating it and then renting it out at a higher price. You then refinance the property to get back some of the money you invested in renovations and repeat the process with another property.
If you don’t intend on investing in the bond, cash, or stock equivalent instruments, there is a probable chance that your preferable investment is part of the alternative assets category. And this may include cryptocurrencies like Ethereum and Bitcoin, private equity, gold and silver, stamps, hedge funds, and even coins and art.
Alternative investments are best for accredited investors wishing to diversify away from traditional investment types and hedge against bond and stock market downturns. Alternative investment types became popular in the years following the Great Recession. During this period, bondholders and stockholders witnessed their savings drop significantly.
For example, gold prices surged in 2011 and hit highs that were not toppled until the eighth month of 2020. Most alternative investments are available via private wealth management companies, but some online brokers might also provide you access to specific alternative investments.
As we all know, the stock is typically an ownership share in a company. With stocks, you are best positioned to receive the biggest possible return on your investment. However, stocks also expose your funds to the highest volatility levels.
But don’t worry because such cautionary terminologies are not meant to scare you away from stock investing. Instead, using such cautionary words in individual stocking should offer you guidance toward the diversification that purchasing stocks collection via mutual funds offers instead of acquiring independently.
Typically, individual stock investing is best for investors who own a well-diversified portfolio and are ready to take on a little more risk. And the recommendation is to limit your individual stock holdings to around 10 percent or less of your overall portfolio because of the volatility of the individual stocks.
If you wonder where to buy such stocks, you can consider consulting an online discount broker. Nowadays, going through an online discount broker is among the least expensive and easiest ways of buying stocks. After setting up and funding an account, you will pick your order type and automatically become a bona fide shareholder.
For those who are interested in making some extra money, try investing into Tesla Coin.
Many other investment types are worth looking at and giving a try to grow your wealth. For instance, dividend stocks can offer you the fixed income of bonds and individual stocks and stock funds growth. Additionally, if you have an extended time horizon, Exchange-Traded Funds or ETFs can be a perfect investment. However, although the above three investment types feature relatively higher risks, their returns are on the higher side.