In this day and age, most of us do not make enough money to just go out and buy whatever we want. Unless what you need is relatively affordable, you do need to plan ahead. Investments have become more than just a thing that we do when we have extra money; it is a necessity in order to prepare for our future and buy a lot of things.
Of course, not everyone has the education and skills of an investment banker. Most of us are experts in our own fields, but beginners when it comes to investing. Here is a look at some investing options for you beginners.
Despite what the past few years may have suggested, real estate is actually one of the most well-protected investments you can make. This is especially true in developing regions, where real estate grows along with the regions themselves.
Another solid, low-risk investment is gold. You could go for either gold bars or coins or jewelry; whatever you choose, you are not likely to go wrong. Gold prices keeps rising as the dollar depreciates, making gold one of the best the securities against economic crises. Carats Directs 2U is a great option to buy jewelry online and you can good discounts if you go to Frugaa.com.
Forex trade is another great option, but lots of beginners are either unaware or unsure about it. There is a greater element of risk here, but it offers the best returns on investment when compared to the above options. What makes forex a great option for beginners is that you can good profits with a small capital as well. All you need is a good strategy and you can make quite a bit from forex trading.
Insurance makes a great investment, and it also offers you protection from huge monetary costs that come from nowhere. With an insurance policy, you ensure that you are taken care of in case of emergencies and you get a good investment out of it too. Frugaa offers a number of discounts on insurance as well.
The 401K retirement plan offered by companies is also a good investment plan. These safe harbor programs work by taking contributions from you and your company, which then accrues interest over time. If you choose to leave your job for another, you can still have the funds in your name.
Treasury bonds are government-issued, adding an extra level of safety that beginner investors need so much. You can get treasury bonds for just a few thousand dollars, and in the end you get 5% or more of the invested amount on maturity.
For those of you who prefer more fluid and rapid investment option, the stock market is a good option. Its high liquidity means that stocks can go up and down quite fast, which means there is huge potential for high returns on investment. However, the risks are greater too, and you need to carefully choose what you invest in and how much you invest.
Mutual funds are a simpler and safer alternative to stock market investing. They are essentially a bundle of shares from various companies that you get to buy together. Most mutual funds have stocks from a number of industries so that if one industry sees poor results, the results of other better-performing stocks diminish the negative effects.