Investing can provide you with long-term savings, another source of income, or both. People invest for a number of reasons and there are a variety of ways to do so. Whatever your short-term and long-term financial goals may be, it’s important that you use your money wisely. Take the time to learn about the great ways to invest money.
There is plenty of research available on the smartest ways to invest. Keep in mind that the safest methods are usually the ones that don’t yield the highest returns. You’ve probably heard that the more the risk, the higher the payoff should you be successful.
Regardless of your plans, here are just a few investment ideas to think about right now:
Certificates of Deposit
These federally insured deposits have specific maturity dates that are agreed upon at the start. Since they are “time deposits” you won’t be allowed to withdraw the money for a specific amount of time, and if you do, you will be charged a penalty.
However, CDs tend to yield higher rates than regular savings accounts. This might be something to consider if you have enough money that you know for sure you will be able to keep in the bank for a year or more. It’s ideal to use an online bank since they offer a higher rate.
Corporate bond funds (short-term)
Some corporations occasionally issue bonds to small investors as a means to raise some money. The good thing about short-term bonds is that they are less susceptible to interest rate fluctuations. Their maturities tend to average one to five years, making them among the great ways to invest money for those looking for cash flow. The downside to this type of investment is that it is not FDIC-insured, so you’ll need to be careful with your choice.
S&P 500 Index Fund Investing
If you’re not interested in a growth stock fund but still want to try for some higher returns than traditional banking solutions, the S&P 500 index fund might be what you’re looking for. This fund is based on the 500 largest and most successful US companies (Microsoft, Apple, Amazon, Johnson & Johnson, Visa, etc..). The best thing about putting money into this is that it delivers immediate diversification, allowing you to own a small piece of all of the companies.
Natural Resources Mutual Funds
Natural resources are commodities that have always been in demand and probably always will be, in some form or another. Some of these funds are broad and cover a wide range of natural resources, while others focus more exclusively on certain industries such as renewable energy, agricultural firms, or copper mines.
To learn more about investing in natural resources, as well as other great ways to invest money, look into Capitalist Exploits. It’s among the best investment resources online and you can sign up to receive a free newsletter. Start getting recommendations from the best money managers and professional investors.