Financial Investment Options for a Strong Portfolio

Written by: George Smith
08/29/2019

strong-portfolio

There are all kinds of options available for investing. It may be tough to decide what type of investment to make. Short and long-term gains, as well the ease of obtaining and managing an investment must be analyzed to determine which type of investment is the best investment.

While some investments have guarantees, other do not. It is important to know what type of investments exist, and what those investments do. Markets change and the conditions of investments must be examined too with adequate attention.

Consider these nine available investment options to bring in additional money and round out an impressive portfolio.

  • Real Estate
  • Bonds
  • Commodities
  • Mutual Funds
  • Exchange-Traded Funds
  • Certificates of Deposit
  • Stocks
  • Annuities
  • Retirement Plans

When utilizing any or all of these investment options, investors are well on their way to realizing financial goals, which includes a strong portfolio.

Rake in Extra Money with Real Estate
Real estate is a great investment option. Through real estate ownership, investors can build capital. The value of a property will open property owners up to all types of finance options. Real estate is commonly used to secure additional loans. It can also produce cash right away through rental income.

Build Wealth with Bonds
Bonds have been around for a while, and there are various types for investors to purchase. Corporate, municipal and federal bonds provide investors with three options. When purchased wisely, bonds can build more wealth. Treasury bonds are traditionally considered the safest of the three bond options for investors.

Consider Cashing in on Commodities
Making an investment into products that can be sold is another great option. Investing in commodities can lead to a huge influx of money. This influx may take time, and regulations can always change in relation to what can be sold and how it can be sold. If unable to purchase commodities alone, solo investors should consider teaming up with friends or family. Pooling together resources to make a commodities purchase can lead to increase financial assets. Commodities experts can also be employed to handle investments on any of the great commodities out there.

Commodities for Investors to Consider

  • Agriculture – Examples: Corn, Wheat, Pine Trees, Soybeans
  • Energy – Examples: Crude Oil, Natural Gas, Solar Panels, Fuel
  • Livestock – Examples: Milk, Chickens, Eggs, Cows
  • Metals – Examples: Gold, Silver, Copper, Steel

Make More with Mutual Funds
With active and passive managed style mutual funds, investors can pick the right type of mutual fund to meet their financial goals. By providing money to a group of investors, money is put into several activities with hopes of diversifying revenue streams. Like any financial investment, there can be a risk. However, mutual funds are considered less of a risk because of their diversity.

Index funds are a type of mutual fund that investors may want to seek out. Through dividends and interests, funds paid out to investors will often fluctuate based on the ever-changing market. Shares of index funds can also be sold within the funding pool.

Find Opportunities in Exchange-Traded Funds
While mutual funds are priced at the end of the day, the price and availability of exchange-traded funds moves throughout the day. They are purchased and sold through the stock market.

Exchange-traded funds make for a wise choice for any investor that has the time to monitor markets and make on-time actions. For those that don’t have the time to monitor them, consider employing an expert to assist in the process and maximize the investment.

Certificates of Deposit for Anticipated Investment Return
For up to $250,000 investors can purchase a certificate of deposit (CD). CDs are low-risk choices that yield anticipated outcomes. They can be purchased at pretty much any bank out there.

They are a great investment for advanced planning. Principle and interest are returned after a set amount of time. They are also insured by the FDIC. Even if something goes wrong with the market and a bank collapses, the CD is still good and legally protected.

Secure More Money with Stocks
Investing in stocks has many benefits. When used wisely, stock owners can be provided with dividends from shares of a company they own. Stocks can also be sold.

The stock market changes quickly, so it is important to watch the stock market closely. It may be wise to employ the services of a stock market expert to maximize stock market investments.

Accrue More Wealth through Annuities
Annuities allow investors to buy a contract with an insurance company. Periodic payments from the insurance company will follow. Timelines for annuities can be life-long or fixed.

While they traditionally do not yield a high return, they are turned to usually as a financial accessory. They are a common element and part of the mix with many successful retirement plans.

Reap the Benefits of A Retirement Plan
Retirement plans are a more general investment, but they do not lack specific actions that can be taken to build more wealth. Investors may choose between work provided retirement options, which can be a 401(k) or a 403(b) plan. They can also turn to financial planning experts for other types of retirement plans.

A well though-out and strong retirement plan will likely incorporate many, if not all, of the investment options mentioned previously. They should be diverse and able to still provide financial gains, even if the market goes in a downward direction. It is never too soon to begin a retirement plan. Start as soon as possible.

These nine investment options all provide unique benefits. Their specific functions, regulations and uncertainties need to be examined. Make sure to do plenty of research before making an investment, and if able, employ the services of an expert.


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