Are you looking to invest your money to preserve your wealth or create a cash flow?
Before you open your wallet, you want to make sure you learn about the different types of investing strategies.
Investing can bring great rewards but also can break your bank account. You want to make sure you know what offers the greatest returns. You also want to make sure you assess your risks.
Here are the types of investing strategies you should consider:
Dividend Investing
Do you want to make an investment that regularly sends you money? This is referred to as dividend investing.
Dividends are excess cash that the company pays to all shareholders each quarter. It’s a reward you get for investing your money in a company.
Different companies will have different percentage rates for their dividends. While you want to consider the highest percentage rate, you also want to make sure you can afford the stock.
Real Estate Investing
This is often considered to be one of the safest forms of investing. While it does carry risks and requires you to be more hands-on, there are opportunities to make great returns.
You can buy properties and rent them out to individuals or families. You can also buy commercial property and rent it out to businesses.
One of the unique forms of real estate investing is to invest in countries! A country with tremendous economic growth can be one of the most lucrative opportunities for investors.
For example, you can look at The Jerusalem Portfolio to look into investing in Israel.
Digital Assets
This is a relatively new type of investment option that’s catching on fast. You might want to invest in a digital asset that can create a cash flow for you. Or, you can choose a digital asset that you can sell for a higher price.
As such, digital assets are a unique option for both short-term and long-term investing.
For example, some digital investors buy Bitcoin and other cryptocurrencies. With this option, you can buy at a low price and trade at a higher price. Or you can hold your cryptocurrency for the long-term if you want to make a high return.
Another option is to earn royalties on digital assets. Imagine if you owned the rights to a popular eBook. You could then receive royalty income each time this eBook gets sold.
In recent years, Non-Fungible Tokens (NFTs) have become popular among digital investors. These grant you a digital proof-of-ownership of any digital file. You can then sell these digital works at a higher price.
As of now, digital art is the most popular type of NFT. Investors have bought digital art at low prices and then sold them at exorbitant rates.
Choose the Best Types of Investing Strategies
Now you can decide which types of investing strategies work best for your needs.
You want to consider how fast you want to make money. If you are willing to wait, you can hold assets or stocks in the long run. If not, consider dividend investing or earning through royalties.
Make sure you also assess your risk. Never invest what you aren’t comfortable losing. It’s always ideal to consult a financial advisor before you make any investment.
You can find more great financial content on our website!
