SAN FRANCISCO, CA Feb 19, 2016/ Troy Media/ – To secure your financial future, you need to invest. But with so many different types of investing, how do you decide which option is best for you? The good news is that you don’t have to pick just one. Financial experts agree that a varied portfolio is the best way to ensure your financial future. Even so, there is such a thing as stretching your portfolio too thin. Resist the urge to invest in everything. Instead, try out a few of our favorites and build your portfolio based on what works the best for you and your goals.
Quick returns for the gambler in all of us
I’m starting my list with my favourite way to start investing: binary trades. In its training guide, [popup url=”http://blog.24option.com/” height=”1000″ width=”1000″ scrollbars=”0″]24option[/popup] says, “Binary options are attractive because of their simplicity to understand. Essentially you decide whether the price of an asset will rise or fall in a specific time, e.g., will the value of oil rise or fall in the next 60 seconds?”
But while binary trading is the simplest type of trading, it also carries risk. If you’re right about your prediction, you’ll earn money, but if you are wrong, you could lose all of your investment. Even so, binary trading is the best way to learn how the stock market works and behaves while keeping your investments minimal and without having to make a long-term commitment.
Investing in yourself
If gambling isn’t your style, one of the best ways to start investing is to start with your own accounts. The easiest way to do this is to open a CD (Certificate of Deposit) or a Money Market account.
CDs are great because they teach you how to be patient and to wait for an investment to mature. These are savings accounts that offer a higher interest rate than the average account but you aren’t allowed to touch your investment until the account matures (this can take a few months or a few years, it’s up to you). If you withdraw money before then, [popup url=”http://www.troymedia.wpmudev.host/2014/04/12/find-out-how-much-your-investments-are-really-costing-you/” height=”1000″ width=”1000″ scrollbars=”0″]the penalties involved can be really steep[/popup].
[popup url=”http://money.cnn.com/2015/06/23/investing/money-market-funds/” height=”1000″ width=”1000″ scrollbars=”0″]Money Market accounts[/popup] offer higher and more competitive interest rates than a typical savings account. They require that you keep a larger minimum balance and, if the account accrues interest past a certain amount, that interest can be taxed. Unlike CDs, you can use your Money Market account like you would a checking account and withdraw money at any time with no penalties.
Real estate is a [popup url=”http://www.investopedia.com/articles/pf/06/realestateinvest.asp” height=”1000″ width=”1000″ scrollbars=”0″]type of investing[/popup] that most readers already understand. You buy a piece of property and if the market behaves that piece of property increases in value over time. Later, you sell that property to someone else at its new value and pocket the profit (after you pay taxes on it of course). If you do this quickly, the process is often referred to as “flipping.” This is a great practice when the market is up, but if it declines (or bottoms out like in 2008), it might be better to sit on the property until things have evened out and recovered.
Real estate is great because it helps you accrue equity, which is fantastic for your credit rating. And, depending on the type of property in which you invest, it could be a reliable source of income (renting it out until you’re ready to sell, for example).
A good investment portfolio should contain a variety of investments that includes some of the following: stocks, bonds, savings, retirement accounts, mutual funds, real estate, business investments, etc. We’ve outlined a few of our favourite ways to get started. Start with them and, as you learn, you can invest in other less predictable assets and build your portfolio naturally.
The views, opinions and positions expressed by all Troy Media columnists and contributors are the author’s alone. They do not inherently or expressly reflect the views, opinions and/or positions of Troy Media.
|Submit a Letter to the Editor|
Troy Media Marketplace © 2016 – All Rights Reserved
Trusted editorial content provider to media outlets across Canada