People are usually caught in a trap when they want to choose where to invest. This is because there are many investment options to consider. It is more challenging when you are alone trying to figure out what is best for you. On that note, here is a comprehensive guide to making your choice of investment easy. Whatever financial goal you have, this content will be of help to assist you in meeting the goal.
Don’t be among those who are intimidated by investing. Below are some of the options that you can choose from. Making the best choice of investment is not a piece of cake, but this guide will help to narrow the options for you.
Exchange-Traded Funds are not really different from mutual funds. Mutual Funds are purchased not by an individual but through a fund company. The exchange of shares is done in the stock market. However, ETFs are used to track a market index through the collection of investments. The price of ETFs throughout a trading period keeps fluctuating. Even as a new investor, you can try out this investment option. Rather than individual stock, the Exchange-Traded Fund is said to have a high level of diversity. There is no better way to track an exhaustive market index than investing in ETFs. This option helps to minimise risk, and you make money from your investment when you feel it has gained enough value.
When you buy a stock, you automatically own a share in the company. It is also known as equity; this investment option is straightforward. Once you own a share or equity in a particular company, you will be patient for the share price to rise higher than what you purchased it for. Then, you can sell and make your profit. However, most people are often scared of losing their money from the stock’s falling price. This is a risk, but there is no investment free from risk. If you don’t have any investment option in mind, you can proceed to buy ownership in any of the companies that you understand its function. Many companies are in the financial market, and they are publicly traded. These companies include Apple and Facebook, just to mention a few.
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As an employee, you need to make plans for your retirement. Retirement plans are not for those who are old, and there are numerous types of retirement plans for you to consider. Fortunately, some work offices have a retirement plan for their employees. This includes SIPP (Self-invested personal pension) plans, and if you don’t like the idea of a company retirement plan, you can consider other options. There are numerous individual savings account (ISA). This type of account is tax-free. A personal retirement account helps you to have something to survive on when you are finally out of work. If you don’t know how to go about this option, you can visit financial institutions to see what offers they have for you since they come in different varieties. There are other tax benefits to be enjoyed. It would be best to have this security to protect you when you reach retirement age. Any option you decide to follow, just ensure you have the courage to invest and enjoy your retirement.
Cryptocurrencies are digital currencies which include Ethereum, Litecoin, and Bitcoin. Bitcoin is the most common type of cryptocurrency. This investment option is precarious unless you have a comprehensive knowledge of it. It fluctuates; you need to know when to buy and the right time to sell. Timing is crucial; this type of investment is better off as an alternative investment. Some people are experts in this field. You can apply to be mentored by them; they will teach you how to understand the market: this includes when to buy, HODL and sell.
Investing in bonds is similar to lending money out. However, the money can be lent to either a single body or a government entity. One of the advantages of investing in bonds is that it has low risk compared to cryptocurrency and stock investment. This does not mean that it is entirely risk-free. No investment option is a hundred percent free from risk. It would be best to keep in mind that the business you purchased their fund could fold. As the lender to the company, you can hold onto your investment till it matures. In the end, you can get your interest and also enjoy your principal investment.
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Physical (Tangible) investment
If you don’t like investing in digital assets, this option is for you. You can invest in physical assets like real estate. However, you need to ensure you have an understanding of the property that you are investing in. Aside from real estate, you can also invest in natural resources such as minerals, oil and agriculture generally. When there is inflation, it is an excellent opportunity to build your portfolio.
Finally, if you want to buy any investment above, you must ensure that you purchase through the proper means. The easiest way is to hire a financial advisor; he will provide you with the tools and guide you to a successful investment. He will also give you a series of strategies to use while trading in the market. This is very straightforward because the advisor does all the work on your behalf. If you don’t like this option, you can choose to manage your investment yourself by opening a brokerage account. Here, you make all the financial decisions alone and bear all the risks and downside; there will be no one to blame for your mistakes.
In the section below, let us know the investment option you will try out. You can signup to our newsletter for more updates. Kindly check out also our previous blog such as “7 top secrets that no successful investors will tell you“.
Recommended books for further reading:
- The Barefoot Investor: The Only Money Guide You’ll Ever Need
- Investing QuickStart Guide: The Simplified Beginner’s Guide to Successfully Navigating the Stock Market, Growing Your Wealth & Creating a Secure Financial Future
- The Five Rules Successful Stock Investing: Morningstar’s Guide to Building Wealth and Winning in the Market
- The Financial Times Guide to Investing:The Definitive Companion to Investment and the Financial Markets: The Definitive Companion to Investment and the Financial Markets
- My philosophy for successful living by Jim Rohn
If you are looking to open an investment account, follow these links below:
- Passive income
- Silver & Gold coins
- Interactive Brokers
(‘68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.)
I didn’t know what some of these were. Thanks for clearing that up for me🙌