To the untrained eye, investments are a surefire way to fill your pockets. You just put some of your own money towards it and then you wait for the results. In a perfect world, this would happen. But this isn't a perfect world and investments are more complex than you think. Granted, that's not to say there aren't any safe and easy investments to try. There's actually quite a few that are easy to get into. In this article, we'll be going over a few safe investments that have a high return on investment.
Real Estate
We'll start off with that's currently considered to be the safest investment of them all, real estate. Real estate investments have seen a drastic increase in participants for a variety of reasons. For starters, real estate doesn't have the occurring risk of a market crash. One of the most impactful things that can happen when participating in the stock market is a stock market crash. A stock market crash is when the value of most, if not, all stocks suddenly plummet in value. Not only do these occur quickly, they can happen when you least expect it to.
In real estate, what you invest in is known as a tangible asset. A tangible asset is something that's physical, like cash and the building you're putting money into. Instead of running the risk of losing value, you actually have the opposite effect in real estate. It can increase in value over time, which is called appreciation. You'd be surprised to know that real estate is often considered by many personal finance professionals to be the best way to generate wealth.
Certificates of Deposits
A certificate of deposit is another form of a savings account. But they're one of the investments you can have. A majority of these deposits are insured by the Federal Deposit Insurance Corporation (FDIC), which unlike investing in forex basically eliminates the risk factor. How this investment works is that you first choose a certain amount of time. This can be up to 10 years, and within that time, you will deposit money. Until the allotted time has passed, you cannot withdraw what you deposit, so to speak. In most cases, people who try to withdraw have to pay a penalty fee. Granted, there are some companies who won't charge a penalty for an early withdrawal. Certifications of deposit generally have a higher rate of return than traditional savings accounts.
Treasury Bonds
Treasury bonds, or T-bonds, function very similarly to a certification of deposit. But rather than open an account, you are, instead, issued bonds by the government itself. How they work is the government issues you bonds with a fixed interest rate. This interest rate is paid every six months and investors generally have to hold them for at least 20 years. But if you want to maximize the value and profit, you can hold them for as long as 30 years. You'll be paid in full by the government after the bond has matured. This is one of those investments that can take quite a while to see a profit, but the wait is definitely worth it. In the meantime, you can check the value of a savings bond online and also easily focus on other investments.
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