McKenzie Jones 5m 724 #investment
The views of this article are the perspective of the author and may not be reflective of Confessions of the Professions.
You probably wonder whether you should invest your money or keep it in a standard savings account. While such an account will offer a lot of security, it will not provide significant returns. Such is why you need to invest your money. When you invest your money, you will get big returns in the future. However, this will only happen if you choose a good investment option. Below are some of the things that you can invest in and make big returns.
Certificates of Deposit
Certificates of deposit are a good investment option for risk-averse investors. They are offered by credit unions, banks, and other financial institutions. These certificates of deposit are products that offer interests in exchange for customers agreeing to deposit high amounts of money to bank accounts. These customers should leave this money untouched for the specified time. When you invest in such a product, the financial institution you choose will regularly pay you the specified interest until your principal matures. After this principal matures, you will be given back together with the accrued interest. If you try to withdraw your principal before its maturity, the financial institution offering the certificate of deposit will penalize you. You should invest in a certificate of deposit if you are willing to tie up your cash in exchange for more money.
Short-Term Bond Funds
If you are often worried about the safety of the money you invest, a short-term bond fund will be a perfect investment option. When you choose this option, you will invest in bonds that will mature in less than five years. These bonds can be bought or sold anytime. That is, you can make additional investments or reinvest in them. You can get these bonds from companies, corporations, and governments. Short-term bonds are quite advantageous because they are less risky when compared to long-term bonds. Therefore, these bonds are likely to hold up better than long-term bonds when market conditions are unfavorable.
Government Bond funds
Agencies of the U.S government usually issue government bond funds. They are debt-based investments where people loan the U.S government money in exchange for interests. The U.S government uses the investment funds to carry out new projects. You should invest in these bonds if you need a fixed-income asset. Such is because, with these bonds, you will be paid interests known as coupons at regular periods. Once the bonds expire, you will get your money back plus any accrued interest. If you decide to invest in these bonds, buy bonds that do not take a lot of time before they mature. You should also avoid bonds that mature very quickly, as you will not get significant returns if you buy such bonds.
High-Yield Savings Accounts
Just as the name suggests, a high-yield savings account is a savings account that yields a lot of money. This type of savings account is likely to yield 20 times the amount of money that your standard savings account yields. High-yield savings accounts have few overhead costs because they are online accounts. You can easily access these accounts, and the money in them transferred to other accounts. You should invest in high-yield savings account if you need to access the invested money in the near future. You should also invest in such a savings account if you are afraid of losing your money after investing.
Delaware Statutory Trust, DST
Delaware statutory trust is another investment vehicle that you can choose if you want to invest your money. When you invest in it, you will get an opportunity to own a quality asset belonging to a DST sponsor. This financial vehicle involves several investors who hold fractional interests in a real estate asset. A DST sponsor usually offers such an asset. This sponsor uses the money given by people who want to invest in DST to replace the capital used to purchase this real estate asset. If you decide to invest in DST, look for good Delaware statutory trust companies such as Kay Properties & Investments LLC.
You should invest your money if you want to get returns in the future. However, you need to be careful when choosing investment options and ensure that you select investment options that are likely to offer big returns. Some of these investment options include short-term bonds, government bonds, and Delaware Statutory Trust.