Investing has gained a lot of interest recently due to the exposure that billionaires such as Elon Musk and Jeff Bezos have been receiving. Many individuals are looking to invest to try and reach that level of wealth.
If you are looking to reach that level of wealth, then you are going to have to make some risky investments.
However, if you are looking to invest safely and build wealth, then here are some investments that can help you achieve that.
1. Certificate of Deposits
Certificates of deposits are investments that require you to deposit a certain amount of money into a bank. The bank will then hold your money until a certain date.
Once that date has been reached, then the bank will return your money and pay you an agreed-upon amount of interest. This type of investment is like a high-yield savings account, but you are not able to withdraw money from the deposit.
If you withdraw money from your CD, then you will be faced with a penalty. The penalty will affect your returns, which will make it hard for you to build wealth.
If you have a sum of money that you know you are not going to touch for a set amount of time, then you may want to invest in a certificate of deposit.
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2. Wine Investment
Wine investment is a popular way to invest in fine wine. Wine investors purchase and store bottles of fine wine in order to sell them later at a higher price. Many reasons exist as to why this is beneficial, but the primary reason is that quality and scarcity typically appreciate over time.
Another reason for interest can be found in how well-known investment companies give their wine investments an up-to-date valuation with regard to current market conditions.
3. High-Yield Savings Accounts
High-yield savings accounts may be the safest investment on this list because you are guaranteed to get returns. This type of investment is like a typical savings account, but this type of account returns much higher interest yields.
If you are hesitant about investing in the stock market, then you may want to keep your money in a high-yield savings account.
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4. Index Funds
Index funds are a safe investment option because these funds are compiled with hundreds of stocks. The risk is minimized due to the number of stocks that are included in the fund. If you are looking to invest in the stock market, then you may want to look into index funds.
You should look into index funds if you are unsure of what stocks to buy. These funds will give you a stake in hundreds of stocks, and it will be much safer. You can find helpful in-depth information that breaks down the best index funds to invest in and why.
5. Dividend-Paying Stocks
Dividend-paying stocks are stocks that pay their shareholders due to excess profits. These stocks are a great way to build your portfolio when you are starting out as a beginning investor. The dividends that you receive can then help you build your portfolio by reinvesting them in other companies.
The overall value of the stock that you have may be variable, but as long as the dividends are consistent, then the change in value will not have as much of an effect.
6. Real Estate
Real estate is the last investment on this list because it is the riskiest option. It can be extremely safe if you do your research and manage your property correctly, but it can also be risky during the buying process.
If you are a beginner who is looking to get into real estate investing, then there are plenty of ways to gain knowledge about the industry.
The Minority Mindset is a great online resource and offers material for those who are specifically investing in real estate for beginners this upcoming year.
7. Government Issued Bonds
Government-issued bonds are an incredibly safe investment. Investing in a United States government-issued bond is the safest type of bond that you can invest in. These bonds have a AAA rating. This means that upon the date that your bond reaches maturity, the United States government will undoubtedly give you the money you are owed.
If you are investing in another country’s government-issued bonds, then that will be riskier than the United States. However, if the bond has a high bond rating the investment should be safe.
Conclusion
By no means do you have to include all these investments in your portfolio. In fact, having all of these investments in your portfolio might increase risk due to the amount of information that you have to track.
You can invest in three to five of these and you will be able to build a solid profile that should guarantee returns.