3 different types of investments to consider
Do you want to maximise your savings? The majority of people will want to multiply their current savings to compile a sufficient retirement capital, fund their child’s education or just boost their overall income. To achieve this, you should consider making a smart investment. There are many different types of investments, and you should try to choose at least one in order to benefit from a boost in capital.
To help you decide which investment is right for you, you should take a look at these top four types of investment which will have you on your way to achieving your financial goals.
Property is one of the most lucrative investments available, as real estate is a tangible asset, which can be measured and monitored due to its physical state. There are various types of real estate investment. However, if you have any short terms goals, you can achieve them quickly with a buy to let property investment. You can choose to go hands-on with this type of investment and take on landlord duties, or for a hands-off approach, you can hire a qualified property manager to complete all tasks for you. Both methods will allow you to receive regular rental returns which will enable you to boost your existing income.
When investing in property, it is essential that you choose a lucrative piece of real estate with high rental yields. This is possible by working with property professionals like RW Invest who have several properties available in various hotspots around the UK. The majority of their off-plan developments are located in the north-west in cities such as Liverpool and Manchester. These are prime areas for students and young professionals looking to rent in the city centre. By supplying the demand and investing in central apartments, you can expect to receive excellent returns in the form of rent and the potential of capital appreciation.
Stocks are one of the most popular and easy to manage investments, which can be extremely beneficial if you make smart choices. Buying stock means buying shares in a publicly-traded company, which enables you to own a percentage of the company. You can invest in any size company, as long as they are publicly listed. This includes organisations such as Apple and Facebook, which can offer massive stock returns.
Investing in stocks allow you to become a company shareholder, which will enable you to gain a certain claim on the assets if the company goes bankrupt. However, you must remember that you do not own these assets outright. You can choose to invest as a common shareholder who has more authority over a preferred stockholder, as the latter does not have voting rights but is offered flexibility regarding dividend payments.
If you decide to invest in bonds, you will essentially become a lender, as your capital will be used to fund a business with a corporate bond or a municipal bond for a government enterprise. The main difference between the two is that investing in a corporate bond requires you to pay tax, so you may be best opting for the latter.
Investing in bonds is one of the more risky investments, however, it enables you to receive regular interest payments on top of the initial face value of the bond, which you will receive when the bond eventually matures.