What is a Good Investment?
An investment needs to give you a return and make money for you down the road. Use these tips when asking yourself what is a good investment:
1. Savings account-A savings account will always give you a return on your investment because banks will always give you a decent interest rate so you can make money off of every dollar you invest. Banks will insure your deposits below $100,000 dollars. This means that you have a secure long-term investment. A savings account also allows you to have emergency funds on hand in case unexpected expenses arise. Many people have savings accounts because they want to have a security net in case they lose their jobs and have trouble paying their monthly bills.
2. Collecting antiques, art work, and trading cards can be a good investment. We have seen shows such as Antiques Road show tell people that these items are worth hundreds to thousands of dollars. In order to ensure that your initial investment is lucrative, you must hold on to these items for an extended period of time. You can take your collected items to an antiques dealer, collectibles dealer, or art gallery owner to have your items appraised. After your items are appraised, if you wish you can sell the items, then you will make money off of your initial investment.
3. Certificates of deposit- These are similar to savings account but they have a timeline for when you receive your money. For example, there are three month cds, six month cds, and one year cds etc. You are given an interest rate before you deposit money into the cd and after it matures, you get a return on your investment. This is a solid investment because banks deposits are secured by the FDIC.
4. Buying rental property- rental properties can be very lucrative. This form of investment can be risky since you have to find reliable tenants who always pay their rent on time. Renters must always keep their rental properties rented in order to not lose money on their investment. This kind of investment has its own pros and cons because you will have to take on a mortgage or buy the rental property out right which can be incredibly expensive which is a downside to this form of investment. The upside of this form of investment is that if you can find reliable tenants and keep your rental property occupied then you can have a steady flow of income every month.
A good investment is needed in todays turbulent economy. It is very hard to have job security and know that you will be able to support your family in the long-term. People must first ask themselves what is a good investment that will allow me to make money but not complicate my finances at the same time. Hopefully, these tips for figuring out what is a good investment will help keep you financially stable and allow you to enjoy your life.
By: Candis Reade
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Filed under Investing by on Jul 21st, 2010. 