Do not put all of your eggs in one basket. That’s oft-cited advice from wealth managers. Basically, what it means is you have to diversify your financial portfolio. You cannot rely on one type of investment if you wish to achieve personal fiscal security.
There is a variety of investment opportunities at your disposal. What must do is expertly mix and match available options. That will depend on the level of risk you are ready to face. Outcomes run the gamut.
An acceptable outcome is where you incur losses from one type of investment and recoup those losses from another investment. As for the best-case scenario, you play your cards right that there’s only room for success. Here are investment options you may consider.
Real estate
This is the most obvious investment route, especially for novice investors. Purchasing land for sale gives you a tangible asset. And real estate properties normally appreciate over time, at least if no disruptive housing bubble happens. Make sure to look out for signs of a market crash, such as rising interest rates, before investing.
It’s up to you what to do with your property. You can lease out the land to businesses and gain passive income. Or you can build a house and leverage your property’s net worth.
Investment products
There is an array of investment products you can choose from. They differ in the extent and schedule of ROI you can earn. As well as in the level of associated risk.
Consider stocks, for example. Companies sell stocks to gather capital. In return, the investor gets equity ownership. The value of which increases as the publicly-traded company grows. Your investment value decreases in the opposite scenario. Here it’s vital to research the industry to which the company belongs before investing. Market-wide prognosis should be promising.
Other investment products you may consider include bonds and derivatives. From the former, you earn interest. That is on top of full repayment of the invested amount at maturity. As for the latter, the success or failure of invested money relies upon the market movement of specific commodities.
Startup shares
Startups have ideas for a product or service. However, they lack the capital. This is where you come in. If you have liquid assets waiting to be invested, you may help fund a startup. That’s doable via crowdfunding sites. In return, you get an investment contract.
The startup’s growth equates to your money’s growth. If you want no other outcome than a win, make sure to research what startup industries or product categories are worth investing in. Look into the usual suspects, including software, computer hardware, and video and music entertainment.
Business
If you are brave enough to invest in a startup, maybe you also possess the chutzpah essential to starting a business. Here your options abound. You have to aptly gauge where your passions and skill set lie. Once you have those figured out, it will be easy to pinpoint what line of business you must pursue.
Starting a business is arguably the most fulfilling investment route. After all, you will be hands-on throughout the process. You have more control over the money you let go. That is unlike bonds and stocks, where you pretty much let outside forces dictate your investment future.
Art
The ultra-rich and powerful have a penchant for this kind of investment. It allows them to combine culture and finances. You can go this route if you have an eye for excellent art with the potential to appreciate. Although, keep in mind that appreciation might take a while, so have a space in your home ready for a painting or a piece of sculpture for at least a decade.
Get acquainted with how Sotheby’s art auctions go. Learn about how the art world operates.
Cryptocurrency
You need to be tech-savvy to pull of this investment. Or, at least, you need an expert cryptocurrency advisor. The best thing about cryptocurrency is how it’s prone to price explosions. Your investment can turn you into a millionaire overnight. However, it’s quite risky too.
Investing takes guts. It’s not for the fainthearted. Juggling multiple investments is a different story altogether. It requires razor-sharp focus to keep those balls up in the air. And should you drop the ball, you need a highly strategic mind to regain financial composure.
But if you do investment diversification right, the rewards will be worth every nervous sweat that dropped from your brows. The adrenaline rush you’ll get will be priceless.
