As an entrepreneur, you’ll have to take some calculated risks. However, not everything you do has to be risky. With knowledge backing your investment decisions, some investments aren’t so risky after all.
Take the time to research your financial movement, and make well-informed decisions when it comes to your money. Start here, and read through this brief look at a few smart investment options for young entrepreneurs.
Real estate investments
There’s more than one way to invest in real estate. You could choose to invest in rental properties. You could choose to invest in an RMBS (Residential Mortgage-Backed Security), or you can invest to flip properties quickly for a profit.
Real estate investing is relatively risk-free if you know what you’re doing. Just make sure you know what you’re doing before you jump into such a large investment.
Money market accounts
Setting up a money market account is kind of like a savings account, but there are a few distinct differences. Money market accounts aren’t usually backed by the FDIC, but you will always find a higher earning interest rate.
You’ll have a minimum account total to uphold in your money market account, and some holders require a pretty penny to get things set up. Finding a solid place to store your funds could cost you a minimum balance of up to $25,000.
Certificates of deposit
If you’re looking to stash your cash, you can effectively store it in CDs (certificates of deposit). Certificates of deposit are set up for a specific amount of time to earn you the highest interest possible.
The term for CDs is usually anywhere from 90 days to 5 years. This is considered a short-term investment. CDs are FDIC insured up to a quarter of a million dollars. If you want to stash millions, invest in a CDARS.
There is declining confidence in today’s public markets, making private investments more lucrative than they have been in the past. Finding small operations with promise or starting your own small business can be an exciting and lucrative way to maximize your investment portfolio.
You already know that the stock market provides ample opportunity to invest, but understanding how to invest in the stock market is a whole other story. If you’re a novice investor, it makes sense to choose index funds.
Index funds give you a pre-packaged bundle of stocks. You can learn from there how to spot a good investment, and you may even learn how to let go of a failing stock investment. Either way, index funds are a good place to begin learning how to make money investing in the stock market.