As a novice investor I am always looking for safe and fundamental investments that will help me reach my retirement goals. After doing some research I was surprised to find that there are more ways to “invest” my money that I ever realized, some of those investments come with more risk than others. See below for some of the ways you can invest your hard earned money so that you can outpace inflation and reach your retirement goals as well.
Mutual funds and ETF’s are one of the most commonly held assets for any investor. This is mainly due to the fact that tend to be relatively safe and come with built-in diversification. By diversification I mean that a typical fund or ETF is comprised of several stocks that are designed to balance risk and return. What’s even better is these types of investments come with low fees. Fee’s eat into your returns, and over a lifetime they can add up to be quite a significant sum of money.
Some people are keen on investing in currencies. This can be a somewhat speculative venture, unless you are investing in a basket of currencies so that you are diversified here as well. But truth b told many people that invest in currencies are betting on the rise and fall of the U.S. dollar or Euro. Because of the volatile fluctuation of these currencies over the years this can be a very risky investment, especially if you don’t know what you’re doing.
Binary options are another way of investing. These are financial derivatives that come with an all-or-nothing clause. This means that an investor purchases an option on a specific stock and whether or not it will rise above or fall below a certain stock price within a defined period of time. If they correctly choose the right price then they receive a defined payoff, otherwise they lose their investment. Due to the complexity of these investments it would benefit you to watch a binary options video in order to further educate yourself.
Peer-to-peer lending is a popular investment vehicle that sprung over the last few years. People with less than stellar credit tend to borrow money through these channels because the major loan companies and banks don’t see them as credit worthy. Statistics have shown that they have very low default rates though, as such many novice investors like myself have done quite well in this arena.
