There is a certain level of financial and personal freedom that comes from creating wealth. That’s’ because wealth creation is often accompanied by financial security. Imagine all the things you could do if you had the financial freedom.
Investments are one of the many avenues of wealth creation. To invest, you need to save, save not just for the sake of it and to have some cash should you find yourself in dire financial straits but with the goal of investing and building your wealth. Of course, having financial discipline is vital towards this end.
These investment tips will guide you on which investment option is more suitable for you.
Bonds are a way corporates and banks use to raise money from the public. It is essentially loaning money out to a company or a government (the bond issuer). Company bonds are called corporate bonds, and often have a higher interest rate than government bonds (treasury bonds) because they carry a higher risk. The bond issuer gives the terms of the bond like the interest rate, the maturity period and the frequency at which they’ll be paying the interest on the principal amount, often after 6 or 12 months until the maturity date.
The maturity date can be anything from 2 years, 5 or even up to 25 years. During this duration the bond issuer should pay the interest as ironed out in the bond contract. The advantage of investing is bonds is that the return is, to a great degree, guaranteed.
You can invest in bonds with as low as $1000.
Owning property is a secure investment plan both in the short and long terms. You can buy a piece of land and develop it from scratch or take a mortgage and buy a house already built by a developer. Check Chase mortgage pre approval reviews.
Those are not the only options you have when it comes to investing in real estate. You can buy parcels of land and resale when the value appreciate. Additionally, you can pump your money into a REIT (Real Estate Investment Trust).
Whichever option you go for, land is a solid investment plan if you carry out your due diligence and avoid getting scammed. It also requires patience since it might take up to at least 3 years before the value of your property significantly appreciates if you are thinking of reselling.
You need to register with a licensed stock broker to trade stocks at a security exchange like the New York Stock Exchange or any other stock exchange for that matter. You then become a shareholder in the company after buying their stocks and you are entitled to dividends when they earn profits in a financial reporting period. Some companies give investors the option of earning their dividends in the form of additional shares. This is an option you can consider if the company financial outlook looks promising.
You should exercise caution when choosing the stocks to trade on as the stock price can often plummet causing you to make losses when you decide to sell.