Many find themselves torn between the various options available when it comes to investments. Some fear the element of risk, while others are simply overwhelmed by financial jargon and terms that can make the process seem daunting. Getting help from a financial adviser can clarify your options and help you ascertain the best place to invest money whilst making a healthy return.
Real estate
Property investment is a popular option as it allows you to invest in a tangible asset. You may want to Buy and Hold - where you buy a property and rent it out for monthly cash flow, or Fix and Flip – where you purchase a house below market value and renovate it to improve its resale value.
With the market beginning to show signs of recovery, now is the time to take advantage of lower prices and invest in a property, as the increase in lending will likely drive prices higher in the near future so snap up that bargain building and make a hefty profit while you can. Just remember that not all properties will yield a great return; if you’re new to the world of real estate then it’s worth consulting with someone who knows their stuff first!
ISAs
An ISA is a popular choice when it comes to saving money as it enables you to save a certain amount each year without having to hand any of it over to the tax man! Aside from the tax benefits, ISAs are also quite versatile; you can put cash or shares into your account (or a mixture of both), and enjoy the flexibility of a variable rate and instant access to your funds; alternatively, if you know you won’t need quick access to your cash, choose a set-term (normally a year) at a more competitive, fixed rate and enjoy the interest that this brings.
You’ll find an abundance of banks and building societies offering various ISA accounts so you won’t be short of choices if this is your chosen form of investment.
Shares
You may wish to use your funds for shares of an individual company. You can invest in shares that will either provide capital growth or income, or you can invest in a fund that will be comprised of a mixture of stocks and shares. You’ll need to work with a stockbroker and pay commission on each transaction, and also be aware that the stock market does pose slightly higher risks than other types of investments. That said, the financial payoffs can be lucrative if you’re savvy with your shares.
Forex trading
Forex trading is another type of investment that can reap substantial financial rewards or ruin, depending on your strategy and luck. Forex stands for Foreign Exchange, meaning that you’re trading on national currency markets. The value of a currency can strengthen or weaken in seconds, making this a fast-paced market ideal for seasoned investors. If you’re a novice, you may want to cut your teeth on lower risk strategies before upgrading to Forex trading.
There are many ways to make your money work for you, but whichever investment option you choose, it’s important that it suits your needs and lifestyle so that you still have access to funds in case of emergency.
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