Smarter Team

About the Author Smarter Team

Smarter Analyst was established to fill a gap in financial reporting for sell-side investors, where they can read exclusive reports in real time. Smarter Analyst provides coverage of equities research, unique analyst insights, and outstanding articles from knowledgeable contributors, in addition to the latest stock market news, all hand-picked by our editors.

Which Type Of Investment Is Right For You?


It’s good to save money, but more often than not, traditional savings accounts don’t offer a very high return and it can barely seem worth putting any money into them since you don’t get a lot back. However, saving for your retirement or to buy a property, or to start a business is crucial, no matter who you. What are the options, then? You won’t want to waste your chance to make a bigger return on your money, but how can you know what to do with it?

Although it is a risk, and it is important to note this, investing that money rather than putting it into a standard savings account can be the ideal thing to do. The returns will be much higher (although you could lose the money too), meaning that you could earn a lot more with the right investment for the same amount as you would put into a savings account. There are many different types of investment; read on to find out what some of them are so you can start planning your next step.

Annuities

Investors usually buy annuities solely for their retirement. By paying for the annuities now, the idea is that, by the time you reach retirement age and want to withdraw the money, either as a lump sum or in monthly payments, the investment will have grown. This means that you’ll have a better retirement income than if you just used a savings account or a standard pension.

There are some things to consider when investing in annuities, of course. You should think about whether fixed annuity rates are right for you, for example, and remember that you will have to pay tax on the money you withdraw.

Gold

Gold is what is known as a commodity. This means there is a finite amount of it, and because there will be less of it to buy over time, the price will go up. Although no investment is entirely safe, gold is often considered a good option because it is much more likely the price will go up rather than down.

The thing to remember though is that it may take some time for the price to reach a level you’re happy with, so you will need to be patient. Selling too early could mean missing out on a large portion of the money that would help you greatly in your life.

Real Estate

Investing in real estate has always been thought of as a positive thing to do. It’s not easy to get started unless you already have a down payment (which will amount to between 10 and 25 percent of the property cost in most cases), but you can start making money once you own a property.

Although the biggest payout will come when you sell the property in the future, again, you’ll need to wait sometime to get a good return. However, the great thing about property is that you can make money while you’re waiting to sell too. If you rent the property out, you can gain an income. Unlike many other investments, real estate can work for you throughout your ownership of it.

 

Stay Ahead of Everyone Else

Get The Latest Stock News Alerts