Investment Options for the Average American
Banks That Round Up into Savings
While this is not an outright investment option, it definitely is a feasible option to help the average person save money that can then be invested later. It can be difficult to commit to moving money to investments or savings on a routine basis, especially when emergencies or expenditures arise. But options like keeping the change, or rounding up, offer the ability to move pennies on the dollar into savings accounts--most of the time without you realizing it. You can login to your online portal at any time or view your bank statement at the end of each month to see the amount of money you have saved by rounding up into savings.
Real Estate Investments
Not everyone has the ability to be a house flipper. It takes more than a few bucks to invest into real estate, but when the market is good, you can make big profits if you go about it the right way. You can rent out property you currently have for residential or commercial space (depending on where your property is located and zoned), or through flipping (buying a property with the sole purpose of fixing it up and selling that property within a short period of time). The physical element of real estate eliminates the biggest risks of investment. You have a tangible item that can be resold or rented out--this is unlike buying stocks in a company because while there is a physical building for most companies, the company itself is a grouping of people or goods and services. The stock itself is not a physical item. Real estate investments are not usually a get-rich-quick type of investment, but then again, the more stable investments rarely are.
Bonds
Whether you purchase corporate bonds, tax-free municipal bonds or United States savings bonds, bonds are one form of investment that have withstood the test of time and are not as risky as playing the stock market. Bonds are debt investments, this means that the investor loaned money to a corporate entity or the government in exchange for the amount of the loan plus interest. The interest rates for bonds are either fixed, floating or payable at the time of maturity. The best bonds to purchase--with the least amount of risk--are the bonds with the lowest interest rates.
Investments and savings are something that all people need but that most Americans don’t have. Another form of investment is the stock market. The stock market is a popular avenue for investments; however, don’t go jumping into investments in the stock market without some basic knowledge of how it works including terms like going long, going short, volatility surface, portfolio, buy, sell and ask. In order to prepare for the future and not be overwhelmed when expenses and emergencies arise, it is important to invest wisely.