When you think of the best investment opportunities the first image that probably pops into your mind is the very complicated-looking stock exchange board and many stiff-looking older men in business suits.
But what if the fact of the matter is that you don’t need to be a certain age to get grab onto investing opportunities, especially if you’re looking to make some extra cash? When done responsibly, it can quickly provide you with an additional source of income and help you grow out your money for the long run.
The only thing you can be sure about life is that it’s unpredictable, and you never know when you might end up in a financial jam or need emergency money out of the blue. Not many people are aware of this, but many types of investments are accessible to pretty much anyone regardless of age, income, or even career.
And well, they always say that you should never place all of your eggs in the same basket, so it wouldn’t hurt to branch out. There are considerable risks you’ll have to consider, especially if you’re not super well off financially to begin with.
That means you’ll need to have manageable debt levels and already have a good amount of cash for an emergency fund in case things go sideways. There are always ups and downs in the market, but that’s just the way things are since low risk equals low returns.
Regardless, there are various safe choices available and riskier ones, and it’s all up to you what you want to go for.
Here are the five best investment opportunities to consider regardless of your age and profession.
1. High-yield saving accounts
A high-yield online savings account/cash management account pays you interest on your cash balance and provides you with higher rates of return than you’ll get in traditional bank savings or even a checking account.
This makes high-yield online savings account pretty accessible. With fewer overhead costs, you can earn much higher interest rates at online banks and access the money conveniently by transferring it to your primary bank or via an ATM.
It best works for investors who want to avoid risk and those who desperately need money in the short term and want to avoid any risk where they won’t get their money back.
Suppose you’re new to the investment world. In that case, a valuable tip is to keep between three and six months’ worth of living expenses in an account like this before throwing money towards other investment opportunities for beginners.
One of the only risks with this method is possibly losing purchasing power over time due to inflation if the rates are too low. Other than that, the banks that offer such accounts are FDIC-insured so that you won’t lose your deposit no matter what.
2. Certificates of deposit
A certificate of deposit (CD) is a federally insured savings account that offers a fixed rate for a defined period. Since these are what you call a ‘time deposit,’ you can’t withdraw the money for a specific period without penalty.
However, the financial institution you get a CD from will pay you interest at regular intervals, and once it matures, you’ll get your original principal back along with any accrued interest. Since this is a safe investment method with higher payouts, the CD is most likely the best choice for retired people who don’t need an immediate income.
You can buy a CD from online banks at credit unions. Keep in mind that they are sold on term length, and this may not be for you if you need the money on an immediate occasion.
3. Government bonds
It’s just what it sounds like; a government bond is a loan you get from a federal or municipal government. What happens is that it pays investors interest on the loan over a set period that can stretch from anywhere from one to thirty years.
Another way to refer to this is as fixed-income security and is pretty much a risk-free investment. As long as you trust your government that is.
Of course, everything comes with its drawbacks and what you’ll have to deal with in exchange is a low return in comparison to other types of investment opportunities. This option is best for conservative investors who would rather see volatility in their portfolios.
Also, keep in mind that if you have a portfolio with 100% bonds, it will be harder to hit your retirement or long-term goals.
4. Corporate bonds
Corporate bonds operate similarly to government bonds, except the loan you’re making is to a company instead of a government body. The government does not back these loans, so naturally, it is a riskier option.
If you go for a high-yield bond, you’ll be taking on a risk/return profile that will be more like stocks than bonds. This option is suitable for investors that want fixed-income security with higher yields than government bonds and are willing and capable enough to take on the risk it comes within the return.
This is not the option to go for if you look for investment options for beginners. Remember that in corporate bonds, the higher the likelihood the company will go out of business, the higher the yield.
It’s pretty much up to the investor to find a risk/return balance that will work for them. You can buy corporate bond funds through an investment broker.
5. Dividend stocks
Dividend stocks are good if you’re looking for a fixed income of bonds. Companies’ regular cash payments to shareholders are often associated with stable, profitable companies.
The best way to buy dividend stock is through online brokers. Most investors take interest in this option because of the dividends and stability. Even if the stocks may not rise as high or quickly as growth-stage companies. This option is ideal for any investor who’s a first-timer or even a retiree, making it a great beginner and senior citizen investment opportunity.
Investments can change your life, but before you look into any of them, take a look at your timeline. You should also measure your risk tolerance, how much money you have, and how much help you need, for more tips and tricks regarding investment opportunities and which ones will be the best option for you. And lastly, if you need to make more money, we suggest that you look at some of the best cash-back sites available in 2022.