Many people often think about investing in stocks and bonds whenever they have some substantial funds and want to do something meaningful with them. Some, who may be more adventurous, may want to try their luck in real estate investment trust. Others consider buying into mining companies or investing in precious metals such as gold, platinum, diamond and other gems. However, the idea of trading through a broker, online or in person, may not be too appealing to you. Luckily, there are several alternative investment options open to you.
Peer-to-peer lending
Many online services offer loans to individuals and businesses but source the funds from other persons to fund the loans. All you have to do is to join the pool of investors who want to give loans to others. Once the borrowers qualify, the online services contact you for the money. The best part is that you will now be getting rates higher than anywhere else. In most cases, you are likely to get double-digit returns. You will be receiving a fixed payment which includes the interest owed every month. However, before you offload cash to a borrower, you may want to check their credit rating to assess their suitability.
Real estate
Another viable and reliable investment option is in the real estate. You may consider buying and owning property. You can then choose to sell the property at a higher price, or become a landlord. If becoming an owner appeals to your fancy, buy duplexes or multi-family houses such as apartments, rent out and start receiving the rent. The real estate investment assures sustainable returns for an extended period. However, real estate requires vast sums of money. But you needn’t worry: make a down payment, and the bank will do the rest. Meanwhile, use the rent you collect to offset the loan. Alternatively, you can enter a partnership and help raise more capital.
Becoming an entrepreneur
Instead of risking your hard-earned money on the treacherous stock market, why not start your own business? Businesses grow over time, and with proper planning and management, can give you a steady income. You can choose to deal in physical goods and open up a physical or online shop, or offer services such as consultancy, repairs, training or any other depending on your area of expertise. Whichever choice you settle on, don’t sink all your savings into it. As an entrepreneur and starting business can be quite tricky, and you may lose your investment. This approach can spare you endless sleepless nights. You may also choose to create a part time business, so you don’t have to quit your day job to attend fully to it. It is also prudent to ensure that you have all the legal paperwork in
Online Trading
There is also online trading with the right knowledge, dedication and homework could really work for those who have an interest in strategy and forward thinking. Online trading is a general term and can cover a range of different types of trading so it is worth looking into which ones suit your style, if you want short term or long term results. As the market is quite violate and seemly random, it is best to keep upto date with current affairs as they can have a big impact on the market place especially to do with currency, which steers more towards forex trading. There are also other types such as stocks, spread betting and CFD. Normally people would use a broker to help handle and direct their investments but if you have done your research then you could save both time and money by going directly to the source and doing it yourself, with platforms such as CMC Markets to help you keep track of your investments.
place to avoid run-ins with local authorities. You need to research the market well to identify gaps that you are going to exploit.
Investing in gold
You are probably aware that gold is not only a liquid asset but also a real inflation hedge. It is also a long-term store of value because it is not prone to depreciation. Consequently, Gold is the most sought-after asset as it is a great competitor to stocks and has no correlation with other asset classes. It means that the performance of other property on the stock market has no domino effect on gold. In tough times, when currencies are not of much help, gold turns into a rescue asset. As an investor in precious metals, various options are open for you. You may choose to buy and hold physical gold in terms of bars, coins or gold exchange-traded funds. For the safety of the metal and you, don’t keep them in the house. Deposit your little collection into safe houses or banks and have a peace of mind as you sleep. Alternatively, you can invest in gold-mining companies. For starters, an allocation of up to 10% in gold should be enough for your portfolio.
If you have some funds you would wish to invest; you will be better off avoiding stocks and bonds, or anything that goes through a broker. Peer-to-peer lending, investing in real estate and trading in gold are some of the options available, and they earn enough profits without risking too much. You may even want to start your own business.
