TYPES OF INVESTMENTS
There is a reason everyone is always raving about the importance of investing so this should not come as a surprise. The numerous benefits of investing justify the hype. Investments play a huge role in wealth creation. They also are one of the best bets to becoming financially independent. However, one of the most common queries that people have once they realize the benefits of investing is what they should invest in. This very genuine, weighty inquiry should not be overlooked, what really are the worthwhile investments? At the end of this article you will know for sure.
One of the smartest ways you can invest your money is through buying stocks. Buying stocks has to do with holding shares of a company. There are so many benefits of buying stocks. One of them being that apart from being easy to buy, they are easy to sell. Also, as a shareholder in a company you instantly become a beneficiary of its success. Furthermore, if you buy a common stock, not only will you get a share of its dividends but get voting rights as well. If you favour preferred stocks on the other hand, while you won’t get voting rights you will get preferential treatment when it comes to receiving dividends on stocks.
Another great way to invest your money is through buying bonds. Purchasing bonds is like giving out a loan only in the case of bonds, the loan is to either a corporation or a government. This should not come as a surprise since sometimes when governments or corporations want money for a project and do not want to take a loan from a bank, they issue a bond. When you purchase a bond, you are told the interest rate to expect and the time which the bond principal will be returned.
Mutual funds are another great way you can invest your money. Mutual funds are professionally run investment schemes where different people entrust an investment manager or company to invest their money for them. When you join a mutual funds’ investment you are in essence buying units of the scheme. These units dictate the amount of interest you should receive and are equivalent to a certain percentage of the scheme’s net value. One of the benefits of mutual funds is that you will have access to investments that you couldn’t have easily acquired as an individual.
Another worthwhile investment tool you should consider is property investments. In its simplest form it essentially means that you buy a property then rent it out to a tenant. In other words you become a landlord. There are numerous benefits of being a landlord like a guaranteed income every end of the month for generations to come and in the event that the property is a housing unit, you can also live there.
Precious Objects Investments
There is a reason very many wealthy people are collectors of art, vintage cars and what not. If you didn’t already know the answer, the secret is simply that they are items whose value appreciates over time. Collectors have a good eye for noticing pieces of whose value will appreciate astronomically with time while their value is still low. They obtain these objects and keep them as assets waiting for the right time to resell them at a higher price. The beauty of precious objects like art or vintage cars is that while in your possession they remain a beauty to behold.
In conclusion, you no longer have a credible reason to explain why you haven’t started investing.