When looking to grow or diversify your income, investments are a great avenue. It is important to consider opportunities that will guarantee high returns with the promise of lower risks. If you are looking for investment ideas for your retirement or for future financial independence, it is essential to consider ideas with lower risk levels to avoid loss of your savings.
The following are proven investment ideas with the promise of high returns.
Invest in Real Estate
Investing in real estate is a great way of earning guaranteed passive income over a long period of time. It is, however, important to learn and familiarise yourself with the property market before delving into it.
Key among the critical areas you need to learn is about the location of the investment.
For your investment to fetch high returns, you need to invest in a growing location. A real estate investment in West Melbourne, for instance, would make a prudent choice, as the area is ideal and lucrative.
You should also be on the lookout for wholesale properties. This is because they are offered at discounted prices. Such properties can fetch twice as much when selling them, thus, maximising your return on investments.
Open a High Yielding Savings Account
A high-interest savings account is another great risk-free way of earning interest on your money. It gives you a good amount of interest either monthly or annually on the principal amount you save in the account. This can be a good avenue to help you raise college fees for your children or save up for your retirement.
You should consider choosing a bank that offers high interest rates but does not charge fees. You should also consider a bank with an excellent reputation and outstanding management.
Invest in Dividends Paying Stocks
The stock market is another ripe place for investors seeking to grow their finances over time. However, buying mutual funds and stocks paying nice dividends at the end of a given period is an easier way of making more money from the market.
Mutual fund companies can help you get well-paying stocks and by doing the market research on your behalf. They can also help you in diversifying your investment to maximise on the returns and also minimise the risks of losing it on one stock.
Inflation Protected Securities
The Treasury Inflation Protected Securities are bonds investments offered by the Treasury and backed by the government. This makes the probability of investors losing their money minimal. When you hold the treasury inflation protect securities, your investment value increases with the consequent increase in the rate of inflation.
It can also guarantee you a fixed interest rate for the entire duration of the bond. You can purchase securities individually or through a mutual fund. A mutual fund purchase has the advantage of easier management of the investment.
If you opt to invest individually, proper diligence of the stockbroker is required to identify the most reliable and competent in the field.
Reducing the risks on your investments is paramount if you want to achieve financial independence. Go for the above investment ideas and seek as much professional advice as possible.