Ways to Invest Money
There are a good number of ways to invest money. The investments that are the safest and most secure, such as safe deposit accounts and Certificates of Deposits are also very slow investments. However, Stocks, Mutual Funds, Forex etc are quick, but with a good amount of risk. Strike a good balance.
The best ways to invest money are also the riskiest. With risk comes rewards, but only an irrational person will invest all his money in high risk investment options. There are a number of ways to invest money, and the best thing you can do is make sure you have a balance of both risky as well as safe investments.
You need to make sure you are making money with more profitable risky investments. However on the other side of the coin you need to make sure that you have some safe money in the bank as well. That is the basic reason why portfolio diversification has become so much of a buzzword.
Here are some ways to invest money, starting from the safest, and going on in the increasing order of risk. Suppose you had $ 100, and wanted to invest it. Try these investments.
Savings Account
Putting your money in the bank is the most secure way to invest money. Choose an FDIC insured account that offers a high yield. However, as I said, the safest is the slowest, and at the current rate of interest of approximately 1.50 per cent APY, investing 100 dollars will take you half a century till you double the money.
Also, inflation will have caught up with you at such a rate as to reduce the value of the money by a substantial amount. At least from the point of making money fast, savings accounts are certainly not among the best ways of investing money.
Certificates of Deposit (CD’s)
A lot better than savings accounts in terms of rate of interest (3 p c APY), Certificates will double your money in about twenty five years. This is slow, but a risk free opportunity of keeping money secure.
Stocks and Mutual Funds
We have now entered riskier territories. Stocks and mutual funds are a good way to make money, and to learn the best ways to invest money. If you are investing in penny stocks, you need to make sure you put in a good bit of money, other wise you will not earn much.
Commodities
If we were smart enough to have bought commodities such as gold, oil etc before the recession, some good money would have been made. In fact, the investments would have tripled. As a rough rule, when things go bad, commodities go good.
Forex
Currency trading and foreign exchange has money in billions invested daily. The foreign exchange market is a volatile madhouse that requires a lot of knowledge and research.
Guidetoriches.net is your gateway to the knowledge that will help you on your way to millions. There have a huge number of qualities write ups from professionals in the industry on a variety of topics, from ways to invest money, stock tips, capital gains tax calculator, finance developments and more. The author is a VC.
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