Investing Ideas

Investing isn’t always what you think. You don’t have to be incredibly wealthy to begin investing either. As long as you are making informed, responsible decisions in your investing journey, you will grow your money slowly over time, with some potential dips along the way, putting yourself in a good position for future financial security. Investing is accessible to most people regardless of your income and career. You may find that your career and income influence the type of investment you make, but you can also gather information online or via an investment broker to help you set yourself up for success. 

An online savings account is one way you can invest your money, something that provides a higher rate of return than a standard bank account. These savings accounts are best for short term saving or for when you need to access your money quickly and efficiently. Your individual bank may have a limit on how many times you access and withdraw money per month but generally speaking, they are easily accessible. A good starting point is to aim between 3 and 6 months worth of living expenses in your savings account before venturing into the world of investing. 

A mutual fund pools cash from investors to buy stocks and other assets. This is a cheaper way to diversify your investment portfolio, spreading your money further, protecting you from the risks of single investments. A mutual fund is ideal for saving for long-term goals, such as retirement. They are a fantastic way to learn and gain exposure to the stock market without going as far as purchasing and managing individual stocks. The best place to purchase mutual funds is directly from the managing firm, or a brokerage firm. A good brokerage can guide you and give you advice on when to buy and when to sell, and even where to buy. 

Traditional real estate investing involves buying properties and selling them later for a profit. Another method is owning properties and putting them on the rental market as a form of fixed income. But there are many other forms of real estate to invest in. One of the most common types is through real estate investment trusts (also called REITs). These are companies that own properties that can generate income, such as hotels, office buildings that can offer regular dividend payments. As real estate investments are highly illiquid, investors should not put into an investment any money they may need to access quickly. Some REITs can be purchased on the public stock market through an online stockbroker, while others are only available in private markets. Similarly, some crowdfunding platforms are open to accredited investors only, while others don’t put restrictions on who can invest.

Corporate bonds are similar to government bonds – the only difference is you are now making a loan to a company instead of a government. Therefore, this is a riskier option as these loans might not be backed by the government. A high-yield bond (sometimes called a junk bond) can actually be riskier by taking on a risk/return profile that more resembles stocks than bonds.

If you are deciding to invest elsewhere, you can look at cryptocurrencies like Bitcoin, or gold bullion and silver, hedge funds, art, or property. Each of which have gained in popularity over the years. It’s an excellent way to diversify and protect your investment portfolio. Investing in other means is always perfect for investors wanting to diversify, as well as those who want to hedge against stock market downturns. Like other investment means, you can purchase these through a good investment brokerage who will be able to guide you through your investment journey and give you investment advice to help you grow your money in the long run. 

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