You may laugh at the idea of investing in this current economy. However, even though, times may seem tough, the best time to invest for your retirement is now. For instance, if you should invest $1,000 right now and it had a 5% yearly return, in 30 years, your investment would yield more than $4,300. If you could add $100 to that amount on a yearly basis, your investment yield in 30 years would be $11,300. A little can go a long way. Not everyone has the same financial goals. When you decide to invest, it is best to determine your specific objectives. Learn as much as you can about your investment product and you will have more confidence in pursuing your objective.
One word of caution before considering any form of investment: put away at least three months of your salary to cover emergencies. Here are six ways that you can invest without incurring debt.
US Saving Bonds
Rather than keeping your money in a low interest savings account at your local bank, consider US Saving Bonds. This is the simplest and most practical way to invest. The government guarantees that you will never lose your money invested in US Saving Bonds. The Series 1 savings bond combines a fixed rate of return that is guaranteed to adjust if there is inflation. If prices increase, you will never lose your purchasing power. If you already have a Series HH savings bond in your portfolio, don’t cash in. These saving bonds are special because they can no longer be acquired. In addition, they recurrently generate steady income that you can use to pay your monthly bills. You will earn a fixed rate of return on a Series EE saving bond investment. These bonds will never change in value. You will be able to re-sell them for the full value in addition to the earned interest, with little or no penalty.
Real estate has been a popular way to invest your money; particularly if you are going to rent or lease the property for a steady monthly income. If done correctly and if you choose the proper location, this form of investing can be quite lucrative over the long run. Find low cost homes that you can fix up and rent, lease or sell.
Purchasing metal such as gold bullion is another popular form of investment. Although the returns are not high, this type of investing is one of the most secure. When other investment values decrease, the value of precious metals is always on the rise.
Certificate of Deposit
CDs or Certificates of deposit may not seem interesting to some, but they are some of the safest forms of investments. If interested, you can shop around with different banks and credit unions. It is likely that you will find a rate that considerably surpasses the return on a similar U.S. Treasury security.
Investing in corporate stocks allow you partial share in a company. However, your return is dependent on how the business does overall. The safest business to invest in is the ones that remain consistent despite economic climate. You cannot go wrong with Disney World.
The LEXCX Corporate Leaders Trust Fund has been around for more than 75 years; before computer programming was invented and yet, it is one of the most consistent funds to date. It has 22 stocks that have outdone the S&P 500. The only drawback is that it requires a $10,000 investment upfront. However, if you can afford it, then go for it!
There are some investments that you need to stay away from. Penny Stocks are inexpensive and not worth much. They are usually feeding ground for scammers. The Futures market is volatile and uncertain. Stay away from Initial Public Offerings, which are new companies that decide to go public. Experts have confirmed that many of these companies will go broke within five years.
Dave Landry Jr. is a start-up business advisor and has been writing finance and business-related blogs for the past three years. Dave is also an associate contributor for National Debt Relief.