Sunday, 6 November 2011

Investment options – Think out of the box to gain more

Investment can be defined as the purchasing of a financial vehicle through which you aim to make profits. It is good to invest. However the investment decisions must be taken intelligently. There are various kinds of risks involved in investment which can even get you into debt. However, when you start gaining profits on your investment you can use the money to get out of debt also. Thus the main work is to manage your risks properly so that you can maximize your returns. When you start investing, it is necessary that you create a proper investment portfolio. You should include at least two or three kinds of investment but not more than four in your portfolio.

This has quite a significant impact. You should remember that most investments are done in some kind of a market. Markets go through a cycle of ups and downs. You gain profit when the market is up; you suffer losses when the market is down. However, you should remember that every market does not have ups and downs at the same time. Hence if you invest in multiple markets, you are reducing your risks and evening out your prospects a great deal. But this does not mean you invest in as many things as your heart desires. Too many investments in your portfolio can be quite difficult to handle and you can end up blundering. It is best that you consult an investment expert before taking any decision and creating an investment portfolio. Read on to know about some out of the box investment that you can include in your portfolio along with the common ones such as stocks, bonds, mutual funds and forex.

1. 401k plans – The most popular and easiest investment is a 401K plan. The main reason for this is because majority of the jobs offer this kind of a savings program where the money you are investing is deducted automatically from your gross income without you even realizing it.

2. Life insurance – Another type of popular investment option is investing in life insurance policies. This is a method to ensure that your family is not left income less in the event of your death. Life insurance policies give your family a monetary compensation for your death so that they can lead their everyday life comfortably. When you invest in life insurance the money that you have to pay every month towards the coverage provides for valuable tax deduction.

3. Annuities – Annuities is the right choice for you if you are interested in deferred income taxes. This is basically an agreement between you and your insurer in which they work to produce income for you and protect your potential revenue.

4. Money market funds – If you want to have a short-term investment then you can venture into Money Market Firm. This kind of investment allows you to earn interest as an independent share holder.

5. Brokered certificates of deposit – These are also known as CD and are the kind of investment in which you deposit a certain amount of money for a fixed amount of time. With this, you can get money out at anytime without having to pay any fine.

6. Real estate – This is a quite difficult form of investment but can gain you immense amount of money if you do it correctly. This not only includes your land but also anything that is attached to your property on a permanent basis such as your home, rental properties, your company or even empty pieces of land.

Thus you can see how the above kinds of investment can enhance and enrich your investment portfolio.

Author Bio:

This is a guest post by Justine Anderson who is a financial writer for various finance related Communities.

Related Posts

Investment Options in Gold
Safest Investment Options
Top Ten Tax Saving Investment Options

No comments :

Post a Comment