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The allure of making easy money is what attracts new investors to the stock market. While stocks can earn high returns, the stock market might not be the best place to invest money. Regardless of the amount of money that you have, you can begin making investments that will provide a guaranteed return in the shortest time period possible. There are many options that you can use to put your money to work for you. Becoming a knowledgeable investor will help you avoid common mistakes and put your investments into opportunities that grow your wealth.
Basic Markets for Investors
Basic markets can be ridiculed by investors that prefer to throw money into the stock market with high risks and no guarantee of profits. It is true that basic markets provide low returns, but these markets are not designed to lose money. Investments made into high yield money market accounts generally offer an amount of interest of two percent or less each year. Investing small amounts of money will not earn high returns, but larger amounts can create monetary growth quickly. Additional safe havens include certificates of deposit, government bonds, some corporate bonds and high yield savings offered at credit unions.
Common Stocks and Mutual Funds
Medium risk investing often includes investments in gold and silver ETF securities. Precious metal and gold are common ways to invest mutual funds with an IRA or Roth IRA account. Foreign currency markets are providing a way for investors to earn higher returns due to current economic challenges faced by European banks and corporations. Purchasing annuities from life insurance, cash lotteries or other structured payments can also earn monetary returns. As a new or experienced investor, it takes an understanding of how each market that you invest in can grow instead of retract.
Alternative stock market commodity investments:
• Heating Oil and Natural Gas
• Cotton, Sugar and Coffee
• Corn, Oats and Soybeans
• Stock Options
• Debt Securities
Higher Returns with Real Estate Investing
If you are trying to avoid the high risks involved with stocks, there are less risky investments that you can make that provide higher returns compared to basic stock market investing. The real estate market has always provided consistent returns on vacation homes and rental properties for real estate investors. Average people that purchase homes that become devalued often see a decrease in their property value due to an outstanding mortgage.
The rental property market sees annual growth due to the large amount of people that cannot afford to purchase a home. Average returns on investments in rental properties can average between 15 and 25 percent each year. The income that is generated provides cash every month during the length of the rental agreement. Many investors that have tried stock market investing or low risk investments are searching for an opportunity to earn higher returns. Real estate rental property investing can provide this income and help build a successful investment portfolio.