Do you have money in the stock market right now? How’s that been working out for you in the last 5 years? Unless you specialize in options (which hardly any of us do), I’d venture a guess that quite a few of you wished your investments were in something other than that volatile stock market.
What Else Is There to Invest In?
Many of us work at a corporation and the investments are limited to a handful of mutual funds within a 401(k) or 403(b). Sure, you can select a few different types of funds and call yourself “diversified”, but are your investments really diverse? No! Your money is all invested within the general stock market. And, if we hear that Europe is nearing bankruptcy, it doesn’t matter if you own shares of steel or toilet paper, it seems like the entire market as a whole goes down the tubes for the next couple of days.
You might not know of any other ways to invest your money, but it is essential to learn so that you can be truly diversified. If you are debt free and you are interested in investing some additional fund outside of the stock market, here are some excellent options.
Real Estate – Investing in real estate (to rent, not to own) is always at the top of my list. Typically the value of the property increases with inflation each year, but even if it doesn’t, your rental rates will often stay consistent and should yield you a tidy profit each month.
High-Yield Checking Account – In almost every area, there are Credit Unions that offer a 3% yield on your savings. Sure, it’s not huge, but it’s 100% effortless and safe! If you have $15,000 in a savings account right now, you could shift it into a new bank and earn an extra $450 each year! Pretty simple.
Your Education – If you are looking to advance in your career, but are feeling held back because you’re without a degree, perhaps it’s time to invest some time into your education! After all, with a degree (or a higher-level degree), you could almost certainly increase your yearly salary and earn much more over the course of you life than what that degree cost you.
Your Business – my wife and I decided to go this route. I invested some money into this website (and a couple of others), and she invested a few dollars into a camera and flash for her photography business. Between the two of us, we have made more than 10 times what we invested initially. There are plenty of opportunities out there for you to do the same.
Angel Investing – This is often a little risky, but if your friend or neighbor truly has a great idea, but needs a little money to get it started, perhaps you could give them some money and in return, they’d make you part owner of their company. Bill Gates had a few investors initially and they are multi-millionaires today – don’t miss out on a great investment. Be careful wth this though – many businesses fail, which means you may never see that money again.
Get advice on investing at www.independentfinancialadvisor.co.uk
Do you think you’ll invest in something other than the stock market? What are you investing in?
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.