Learning to invest is a necessary exercise to secure your future financially. However, knowing the best way to choose the right investment can be a significant challenge for beginners. First of all, care must be taken not to confuse investing with speculation. You can always recognize an investment by the fact that if you do it correctly, in principle, you cannot lose any money! It’s, therefore, vital for you as an investor, to do more right than wrong. But how do you know which investment options are the best? Continue reading to find out five investment ideas for beginners.
1. Consider using a robo-advisor
Since the global financial crisis that started in 2007, investor confidence in financial advisors has declined. More and more savers are unsure of which instructions they can trust their money with and which financial products they should invest in. Leading American investment advisors have recognized the trend and are developing unique platforms that suggest investment strategies calculated by an algorithm.
Such an investment platform is called a robo-advisor. However, it’s not a robot that makes investment recommendations. Instead, experienced investment advisors and IT experts create a particular program that either only gives you investment tips or takes on complete asset management for you.
One example is the YieldStreet alternative investment technology platform. It works by connecting accredited investors to asset-based investment opportunities. In exchange, borrowers will then receive the needed capital which they can deposit in their Yieldstreet wallet. To get started, you’ll first have to open a Yieldstreet account on the Yieldstreet platform, then register your personal information and link a bank account. Once done, sit back and let their income-generating products push your investments forward. For more detailed information, you can check out the Yieldstreet review.
2. Buy and sell property
If you want to invest in real estate, you have to clarify a fundamental question in advance: Do you buy and sell the property, or do you want to rent it out? Alternatively, you can do both. Use it as a rental property over a long period before selling it.
That said, the property must be in a good location. So you’ll have to do your own due diligence to ensure you purchase a property that can benefit to a greater extent from its increase in value. Ideally, the value of the property increases year after year.
The only downside to property investments is that you’ll first need a fair amount of capital to start. More so, if you don’t have enough money, a good credit report is beneficial if you plan to borrow. However, if you’re currently in credit score disputes, legal rights advocates can help. As a consumer advocacy law firm, Your Legal Rights Advocates can allocate you a specialist attorney that can assist with credit repair services, also ensuring you’re protected from deceptive debt collector practices.
Their credit repair service involves challenging questionable information that harms your credit score (likely due to inaccurate reporting). Their service will ultimately help you gain a higher credit score under the Credit Repair Organizations Act.
3. Invest in cryptocurrencies
Cryptocurrencies are digital means of payment. Thanks to the cryptography used, you’ll trade on a decentralized and secure payment system. The best known and oldest cryptocurrency is Bitcoin. Since Bitcoin became known worldwide, several hundred cryptocurrencies are now available. Many of them will soon disappear. However, some have potential — for investors and speculators alike. Some benefits of investing in cryptocurrencies include lower costs, more flexibility, no banks are involved, and you can trade with a regulated and recognized broker.
4. Start a 401(k) or other employer retirement plan
Now, here is an excellent and risk-free investment option, which is just as good as a stock market investment. The 401k plan is the most popular employer-sponsored retirement plan in the United States. As an employee, you can waive a part of your income and pay into specific tax-privileged retirement plans offered by various financial institutions. Your employer can then match your contribution up to a certain amount. The background to this is that such payments are not taxable if certain conditions are met. However, be aware that those funds are not withdraw-able until a certain age.
5. Consider peer to peer lending
With peer-to-peer lending (P2P), you practically become a bank yourself and lend money to private individuals. As a lender, you’re not doing this out of pure charity, you’ll receive interest from the borrower. There are various P2P platforms on the internet that mediate and bring together donors and borrowers. First, these lending platforms make a credit assessment of the borrowers and their financing plans. After, they then make the result available to investors in a so-called credit-worthiness score.