Best 10 Investment Options

Best 10 Investment Options

Are you worried about your savings? Do you have thought about value investment? Have you ever invested anywhere? Are you planning for investment? Are you familiar with Ecommerce trading? Do you want to earn huge amounts of money with small investment? I will let you know in brief,

These are the 10 Smart Ways Where/How You Can Invest Your Valuable Money….

With the rising cost of living, we must invest and when we invest our hard-earned dollars, we want to produce high returns while enduring little risk.


Let’s start here:

1. Money market accounts: A money market account is an FDIC-insured, interest-bearing deposit account.

Money market accounts typically earn higher interest than savings accounts and require higher minimum balances. Because they’re relatively liquid and earn higher yields, money market accounts are a great option for your emergency savings.

In exchange for better interest earnings, consumers usually have to accept more restrictions on withdrawals, such as limits on how often you can access your money.

These are a great option for beginning investors who need to build up a little cash flow and set up an emergency fund.

Risk: Inflation is the main threat. If inflation rates exceed the interest rate earned on the account, your purchasing power could be diminished. Also, you could lose some or all of your principal if your account is not FDIC-insured (though the vast majority are) or if you have more than the $250,000 FDIC-insured maximum in any one account.

Liquidity: Money market accounts are considered liquid, especially because they come with the option to write checks from the account. However, federal regulations limit withdrawals to six per month (or statement cycle), of which no more than three can be check transactions.

2. Treasury bills, notes/bonds & securities (TIPs): The U.S. government issues various types of securities to raise money to pay for projects and pay its debts.

These are some of the safest investments to guarantee against the loss of your principal. Treasury bills or T-bills have a maturity of one year or less and are not technically interest-bearing. They are sold at a discount from their face value, but when they mature, the government pays you full face value. For example, if you buy a $1,000 T-bill for $980, you would earn $20 on your investment.

Treasury notes, or T-notes, are issued in terms of two, three, five, seven and 10 years. Holders earn fixed interest every six months and then face value upon maturity. The price of a T-note may be greater than, less than or equal to the face value of the note, depending on demand. If demand by investors is high, the notes will trade at a premium, which reduces investor return.

Treasury bonds or T-bonds are issued with 30-year maturities, pay interest every six months and face value upon maturity. They are sold at auction throughout the year. The price and yield are determined at auction.

All three types of Treasury securities are offered in increments of $100. Treasury securities are a better option for more advanced investors looking to reduce their risk.

Risk: Treasury securities are considered virtually risk-free because they are backed by the full faith and credit of the U.S. government. You can count on getting interested and your principal back at maturity. However, the value of the securities fluctuates, depending on whether interest rates are up or down. In a rising rate environment, existing bonds lose their allure because investors can get a higher return from newly issued bonds. If you try to sell your bond before maturity, you may experience a capital loss.

Treasuries are also subject to inflation pressures. If the interest rate of the security is not as high as inflation, investors lose purchasing power.

Because they mature quickly, T-bills may be the safest treasury security investment, as the risk of holding them is not as great as with longer-term T-notes or T-bonds. Just remember, the shorter your investment, the less your securities will generally return.

Liquidity: All Treasury securities are very liquid, but if you sell before maturity you may experience gains or losses, depending on the interest rate environment. A T-bill is automatically redeemed at maturity, as is a T-note. When a bond matures, you can redeem it directly with the U.S. Treasury (if the bond is held there) or with a financial institution, such as a bank or broker.

3. Government bond funds: Government bond funds are mutual funds that invest in debt securities issued by the U.S. government and its agencies.

The funds invest in debt instruments such as T-bills, T-notes, T-bonds and mortgage-backed securities issued by government-sponsored enterprises such as Fannie Mae and Freddie Mac.

These government bond funds are well-suited for low-risk investors.

These funds can also be a good choice for beginning investors and those looking for cash flow.

Risk: Funds that invest in government debt instruments are considered to be among the safest investments because the securities are backed by the full faith and credit of the U.S. government.

However, like other mutual funds, the fund itself is not government-backed and is subject to risks like interest rate fluctuations and inflation. If inflation rises, purchasing power can be diminished. If interest rates rise, prices of existing bonds decline; and if interest rates decline, prices of existing bonds rise. Interest rate risk is greater for long-term bonds.

Liquidity: Bond fund shares are highly liquid, but their values fluctuate depending on the interest rate environment.

4. Municipal bond funds: Municipal bond funds invest in several different municipal bonds, or munis, issued by state and local governments.

Earned interest is generally free of federal income taxes and may also be exempt from state and local taxes.

According to the Financial Industry Regulatory Authority (FINRA), muni bonds may be bought individually, through a mutual fund or an exchange-traded fund (ETF). You can consult with a financial adviser to find the right investment type for you, but you may want to stick with those in your state or locality for additional tax advantages.

Municipal bond funds are great for beginning investors because they provide diversified exposure without the investor having to analyze individual bonds. They’re also good for investors looking for cash flow.

Risk: Individual bonds carry default risk, meaning the issuer becomes unable to make further income or principal payments. Cities and states don’t go bankrupt often, but it can happen. Bonds may also be callable, meaning the issuer returns the principal and retires the bond before the bond’s maturity date. This results in a loss of future interest payments to the investor.

Choosing a bond fund allows you to spread out potential default and prepayment risks by owning a large number of bonds, thus cushioning the blow of negative surprises from a small part of the portfolio.

Liquidity: You can buy or sell your fund shares every business day. Besides, you can typically reinvest income dividends or make additional investments at any time.

5. Short-term corporate bond funds: Corporations sometimes raise money by issuing bonds to investors.

Small investors can get exposure by buying shares of short-term corporate bond funds. Short-term bonds have an average maturity of one-to-five years, which makes them less susceptible to interest rate fluctuations than intermediate- or long-term.

Corporate bond funds can be an excellent choice for investors looking for cash flow, such as retirees, or those who want to reduce their overall portfolio risk but still earn a return.

Risk: As is the case with other bond funds, short-term corporate bond funds are not FDIC-insured. Investment-grade short-term bond funds often reward investors with higher returns than government and municipal bond funds.

But the greater rewards come with added risk. There is always the chance that companies will have their credit rating downgraded or run into financial trouble and default on the bonds. Make sure your fund is made up of high-quality corporate bonds.

Liquidity: You can buy or sell your fund shares every business day. Also, you can usually reinvest income dividends or make additional investments at any time. Just keep in mind that capital losses are a possibility.

6. Dividend-paying stocks: Even your stock market investments can become a little safer with stocks that pay dividends.

Dividends are portions of a company’s profit that can be paid out to shareholders, usually every quarter. With a dividend stock, not only can you earn on your investment through long-term market appreciation, but you’ll also earn cash in the short term.

Buying individual stocks, whether they pay dividends or not, is better suited for intermediate and advanced investors.

Risk: As with any stock investments, dividend stocks come with risk. They’re generally considered safer than growth stocks or other non-dividend stocks, but you should choose your portfolio carefully. Make sure you invest in companies with a solid history of dividend increases rather than selecting those with the highest current yield. That could be a sign of upcoming trouble.

Liquidity: Quarterly payouts, especially if the dividends are paid in cash, are relatively liquid. Still, to see the highest performance on your dividend stock investment, long-term investment is key. You should look to reinvest your dividends for the best possible returns.

7. High-yield savings account: Just like a savings account earning pennies at your brick-and-mortar bank, high-yield online savings accounts are accessible vehicles for your cash.

With fewer overhead costs, you can earn much higher interest rates at online banks. As of Nov. 2019, you can find accounts paying above 2 percent.

A savings account is a good vehicle for those who need to access cash shortly or near in the future.

Risk: The banks that offer these accounts are FDIC-insured, so you don’t have to worry about losing your deposit. While high-yield savings accounts are considered safe investments, like CDs, you do run the risk of earning less upon reinvestment due to inflation.

Liquidity: Savings accounts are about as liquid as your money gets. You can add or remove the funds at any time, but like money market accounts, federal regulations limit most withdrawal transactions to six per month.

8. Growth stocks: Growth stocks are one segment of the stock market that has performed well over time.

These stocks tend to be made up of tech companies that are growing sales and profits very quickly, such as Alphabet (parent of Google), Amazon and Apple. Unlike dividend stocks, growth stocks rarely make cash distributions, preferring instead to reinvest that cash in their business to grow even faster.

These types of stocks are among the most popular for an obvious reason: The best of them can return 20 percent or more for many years. But you’ll have to analyze them for yourself to try and figure out which ones are poised to do well.

Buying individual growth stocks is better-suited for intermediate and advanced investors because of the stocks’ volatility and the need to carefully analyze them before buying.

Risk: Growth stocks are some of the highest-flying stocks in the market, but they’re also highly volatile. When investor sentiment turns – when the market declines, for example – growth stocks tend to fall even more than most stocks. Plus, unlike government-backed banking products, there’s no guarantee against losing your money. So if you pick the wrong stock, it could become worthless.

Liquidity: Growth stocks — like many stocks trading on a major U.S. exchange — are highly liquid, so you can buy or sell them on any day the stock market is open.

9. Real Estate Investment Trust(REITs): REIT stands for real estate investment trust, which is a fancy term for a company that owns and manages real estate.

REITs generally don’t pay taxes as long as they pass along most of their income as dividends to their shareholders.

These companies can be a good option for investors who are looking for an easy way to own real estate without the hassle of actually managing it. So those looking for passive income or cash flow, such as retirees, may find REITs especially attractive.

REITs are usually divided into subsectors, so investors can own the type that they like. For example, popular sub-sectors include housing REITs, hotel REITs, data center REITs, retail REITS and even tower REITs (for all those mobile communication towers.)

Risk: Investors should stick with publicly-traded REITs, which are traded on major exchanges, and stay away from private or non-public REITs that have lesser protections and higher expenses. Like all publicly traded stocks, a REIT’s value can decline, though the best-managed REITs should move higher over time.

As with other dividend stocks, look for REITs that have a history of steadily raising their dividend over time, rather than selecting the REIT that has the highest current yield.

Liquidity: Like other publicly traded stocks, REITs can be converted to cash whenever the stock market is open. However, you’ll have to take whatever price the market is offering at the time.

10. Rental housing: Rental housing can be a great investment if you have the willingness to manage your properties.

To pursue this route, you’ll have to select the right property, finance it or buy it outright, maintain it and deal with tenants. You can do very well if you make smart purchases.

However, you won’t enjoy the ease of buying and selling your assets with a click of the mouse. Worse, you might have to endure the occasional 3:00 a.m. call about a broken pipe.

But if you hold your assets over time, gradually pay down debt, and grow your rents, you’ll have powerful cash flow when it comes time to retire.

Risk: As with any asset, you can overpay for housing, as investors in the mid-2000s quickly found out. Also, the lack of liquidity might be a problem if you ever needed to access cash quickly.

Liquidity: Housing is among the least liquid investments around, so if you need cash in a hurry, investing in rental properties may not be for you. On top of this, a broker may take as much as a 6 percent cut off the top of the sales price as a commission.

We have a FEW more where we can INVEST with High Returns at Low-Risk Factor:

Corporate Bonds, Dividend-Paying Stocks, Certificates of deposit, Saving Bonds and others.

CONCLUSION: Investing can be a great way to build your wealth over time, and investors have a range of investment options – from safe lower-return assets to riskier, higher-return ones. So that range means you’ll need to understand the pros and cons of each investment option to make an informed decision. While it seems daunting at first, many investors manage their assets.

But the first step to investing is easy – opening a brokerage account. Investing can be surprisingly affordable even if you don’t have a lot of money. 

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