Investing is a great way to prepare for your future. It takes the money you have now and either increases the sum or offers consistent pay-outs when you need them. Not all investments, however, are equal, and it can be just as dangerous as gambling if you are not careful. Putting a lot of money into a new, up-and-coming company is a huge risk, and you should only ever invest what you have accepted you can lose.
Know Your Markets
When it comes to investing, there are some industries that are more stable than others. A new tech startup could offer huge returns if you buy early and sell at its peak, but there is no true guarantee that they will make it past their proof of concept. Low risk investments can help stabilise and diversify your portfolio
Low Risk Investments
Low risk investments are the best way to start your investment portfolio. They often have low returns but are more stable, making them a great way to solidify your portfolio and bring in consistent returns quarter after quarter. The types of industries that would qualify as a low risk investment include:
- Food production
- Real Estate and Development
Though these industries are stable, in the sense that people will always need them, that does not guarantee anything. It is up to you to choose the right companies and investment opportunities. Crawford Park Farming AG, for example, offers a Grow Partners program that allows you to invest in valuable farms and, in turn, receive a 1 – 2% return and the ability to monitor your investment as years go on. The reason why this investment is considered low risk is due to the difficulty in procuring new farmland in the United States, meaning that existing farms are set to become more valuable as time goes on.
High Risk Investments
Playing with the stock market is always a huge risk, but it can provide you with the best returns. Rather than attempt to invest in these markets yourself, however, it is wise to hire an investment manager to do this for you.
Always Think Long Term
The only big mistake you can make with your investment is to abandon it too soon. While jumping ship when a company’s stock starts freefalling can be the best course of action, moderate declines in value are natural, and to see the greatest ROI, it must be waited out.
Starting your investment portfolio is a huge step for anyone. It is, after all, a gamble no matter how safe or secure the investment is. With the right market knowledge and a diversified portfolio, though, you can mitigate most of the risk and reap greater rewards. Remember to always think about the long term when you make an investment, and never to cave to pressure or fear when your first investment doesn’t make the immediate return you had hoped for. Get rich quick schemes in investing is dangerous, so play the long game and reap higher returns when you need it most – retirement.