The 5 Best Ways To Invest Your Savings
Too many people have a skewed view of investing. The consensus is that if you didn't start
investing between 20 and 30, then what's the point? The point is there is still a lot of money on the table. There is no reason that during your retirement years, your money can't start working for you instead of the other way around. If you worked in a corporate gig for any length of time, you likely have a 401k or pension, something for your twilight years. If so, it is time to diversify your portfolio or create one altogether. There are five ways to invest that you need to be aware of.
1. Stock Market
The most traditional form of investing is the stock market, which is where you purchase a stake in any number of companies, entities or commodities. As with all investment opportunities, there are riskier investments and safer investments. It is best to talk with a stockbroker to determine the right way to invest your money. They can help you plan and prepare a portfolio for your level of desired risk.
2. Mutual Funds
Mutual funds are another way of investing in the stock market, but when investing in a mutual fund, you are investing in a collection of stocks. The idea of a mutual fund is that the portfolio is managed by a mutual fund manager who receives a percentage based fee. With a mutual fund, you can often expect a specific average return, but you will never profit as much as you would without a managing partner.
3. Investment Bonds
Investment bonds are a guaranteed return. In the United States, a bond is issued by the
government with a specified interest rate. Upon the completion of the bond term, you are repaid your investment plus the stipulated interest. Bonds are a safer investment vehicle than the stock market, but the returns are often lower.
4. Savings Account
If you want a safe investment strategy, then keep your money in a savings account. While you will not double your money quickly, and the interest earned is minimal, you will not lose anything either. You can find higher-yield savings accounts, like certificates of deposits or CDs. However, the rate of return on even high yield accounts will be lower than the stock market or other investment vehicles. A CD or regular savings is still a useful savings tool.
5. Real Estate or Physical Commodities
One of the best investment strategies is to own a physical property or commodity. Many retirees find a passion for real estate investing, which often has high-yields, especially if you have enough working capital to begin with, limiting the need for loans or investors. You can also invest in gold or silver, which also have significant returns for the right investment.
The primary takeaway here is that you can and should invest at any age, as long as you are in a good financial position. While anyone investing at a younger age will have the benefit of time, a retiree can still experience significant returns if they invest right. For more investment insight and news, continue reading the Wise Ol' Crow.