Pitching your 401K is a safe plan to get your future secure, but you don’t have to stop there. Investment is becoming an increasingly popular way of earning money and securing yourself a peaceful, early retirement that allows you to live your life and have fun. If you’re new to investment and aren’t sure which system could work best for you, then you could consider any of the following investment options to meet your financial goals.
Growth Stocks
First on the list are growth stocks that offer high returns on investments in record time. Some of the rather popular options for investing in growth stocks tend to be tech giants such as Apple. However, do bear in mind that growth stocks are relatively volatile and their prices can fluctuate quite a bit. But if your goal is investing for the long term, and you can manage to hold onto your stocks for about three to five years, then you can invest in growth stocks with your eyes closed. However, you do need to perform due diligence and research the company before you end up investing, because the right companies have the potential for practically infinite growth.
Bond Funds
Bond funds tend to be on the safer side of investment, and your principal income through a bond fund is a set amount of interest that the government or the company that issued the bond has to pay to you. Bond funds can be mutual funds or a bond ETF, and they come in many varieties, so it would do you well to check the bond’s riskiness, the company/institution that is issuing the bond, their background, and the duration of the bond. Generally, when the duration of a bond has expired, the buyer sells it back to the government or country for the principal amount at which the bond was purchased, while having made an annual profit on it. Bond funds are especially great if you can’t invest in a single bond due to financial constraints. While the prices of bonds can fluctuate as well, they generally remain stable, and bond funds are considered low risk.
Forex Trading
For long-term investments, your best strategy could be “hold-and-buy,” and contrary to the first impression, this strategy can be applied to forex trading as well. But for this strategy to work in your favor, you need to gain a lot of firsthand experience with forex trading first. In terms of types of forex trading, the buy-and-hold pattern in forex is called position trading. While trading does seem like a compelling option, it is certainly daunting and Maven Trading has made it super easy to learn its workaround.
Dividend Stocks
If you’re not a risk-taker, then this option is made for you. Since you’re looking for a long-term investment option, dividend stocks might just be your cup of tea. This type of stock simply offers a regular cash payout, which is called a dividend. Perhaps the only downside to dividend stocks is that they grow at a glacial pace, so if you’re looking to make money fast, this is probably not the best option. Dividend-paying companies are generally large conglomerates that offer stable income and have been in business for a while. This is one of the most popular options among older career investors to make money. The dividend can grow over time as you multiply your share of stocks. Dividend-paying companies also regularly increase their annual payout percentage, so in a way, it is much like a job that you don’t really have to work at to get your salary.
Real Estate
People have mixed feelings about real estate as a long-term investment because the market fluctuates a lot based on the economy. But still, real estate holds a credible position as a viable long-term investment option in the market. The best part is that when building your real estate sale-purchase profit machinery, you can get financial institutions to bankroll you, and then you can pay the money back over time in installments. While investing in real estate does tie your money down, if you make careful choices, buy the right property at the right time, and hold off for the right amount of time, you could be playing in billions.
Conclusion
There are several ways to grow your money through investment, and you will find all sorts of compelling evidence for how such methods work better than the rest. But your bet is researching your options and figuring out what aligns with your wants and needs the most. Investment is clever business, and you should indulge in it if you have the passion and spine for it.
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