What is the best way to invest money for high return? Is it the real secret wealthy people keep on investing to keep their money growing? With unstable economic environment, you might think that it might be safer to hide your money in your safe deposit box, inside an old jar or under the mattress. But if you want to grow your money, like smart investors did, you should make your money work for you by investing in investment instruments that will bring you better return on investment.
Investing money doesn’t have to be a big stressful risk-induced venture. In fact, investing your money is probably one of the smartest things you can do. You are securing your financial future and ensuring that you are covered in case something happens.
An investor with a small amount should focus on retaining his capital. The best way to invest money is to be sensible. Start with a safer investment. Start small and slowly build up the money over time through prudent decisions.
No investor should invest what he cannot lose. Be wise. Try to make a small gain, increasing your capital gradually. No solid building is built-in a day.
When a larger amount is involved, there is more leeway for error. Higher cash amounts can withstand initial losses more readily. Concentrate on sound investments that will accrue value eventually.
But where do you start? Watch the video below that explains the best way to invest money. This will get your investing off to the best possible start.
How to Make Smart InvestmentsChoices? Smart investors grow their money by:
Retirement Pension Investment Trust
When people retire, their next most important source of money is retirement pension from state and private pension houses like GSIS or SSS. One technique used by some retireable employees, self-employed or voluntary members to get big retirement pension is by paying high premiums in the last five years of being a paying member.
Health Insurance Investment
Get some good health insurance. Better yet, stay healthy. Health care costs are ridiculously high. Most people spend an enormous chunk of their savings, in retirement, on health care. Many people who are pretty well off become destitute from medical problems.
Saving Money in the Bank
The best and safest way to save money is to deposit it in the bank. The bank will offer a definite percentage of interest on your deposits. Banks offer different interest rates for the amount of money you invest. Interest can build up annually or monthly and can be simple or compounded. The interest rates can be anywhere from 2 per cent to 5 per cent.
Investing in Bond Funds
Banks and private institutions offer bonds and certificates of deposits. The longer you keep your bonds and certificates with the bank, the more money to stand to make on interest. Bonds are considered as long-term investment option. A bond pay out around seven percent as interest for the period of four years. Some investors prefer investing in government bonds for it has lower risk, though, it has lower reward.
Investing in Time Deposits
Apart from just depositing money with the bank, there is another option which is called certificate of deposits. This is for a specific period of time and depending on the depositor, it varies from 6 months to 2 years, 3 years or 5 years. This also attracts certain percentage of interest on the deposited amount. Though the returns are less, they are guaranteed.
Investing in Profitable Stocks
The stock market is a way to invest your money on a company by buying shares in that company. Buy and sell shares according to how the company is doing. Though stock market investments can attract returns of 12 percent per annum, the investments are at also at high risk. But smart investors invest small amounts of money, keep their investment for some time and then selling the investment when the time is right. Though, some long-term investor invest their money through “peso cost averaging,” an investment system where an investor invest certain amount of money every month in accordance to his investment goals.
It is well-known that stocks produce a higher return than any other asset class if we hold them long-term. But keep in mind that the stock market is not the safest method, especially when it crashes. You have to be very careful while investing in share market. Good guidance and proper research can help you keep your investments safe in the stock market.
Investing in Mutual Funds
If you’re investing style is less aggressive though, perhaps the best way to invest money is in mutual funds. The returns aren’t going to be mind-blowing but your less likely to lie awake at night wondering how your money is doing. Plus, little to no investing knowledge is required to put your money in mutual funds. Banks or independent companies can help you decide on where to invest based on how aggressive you are.
Investing in Real Estate
A real estate investment can be wise for the long-term, if the price and interest rates are reasonable. Real estate is about location – gaining intrinsic value from its surrounding environment. Research the area’s history. Focus on long-range property values rather than short-term market bubbles.
Property is a great thing to own, because it generally gains value, and you can make even more money by building a business on the property, turning it into a rental property, or perhaps even flipping it. Buying houses with intent to sell it for profit is probably the most popular, because it seems to net a great deal of profits while allowing you to show your creative side. People buy houses and properties for cheap and the remodel them and resell them.
Investing in Education
Education is the best investment option one can make. While it may not be a typical investment, education is money you spend to earn a return later by using the skills you learnt at a job. Investing in education is an investment that can never be taken away. Your advance training and degrees, whether it is formal college degree from Albertus Magnus College, distance college degree or one from the best schools online, it will increase your lifetime earning far beyond what could have been earned without the degree.
When deciding the best ways to invest money, you need to consider if you are looking for long-term investments or short-term. Doing your homework beforehand is the best way to invest your money. Be careful, prudent and wise. A wise investor does not believe everything he hears. So don’t jump into anything that you are unprepared for. Before investing your hard-earned money, set your desired return goal. Wait for your opportunity, get ready and then grab your profits.