Do you want to achieve financial success and stability? It’s important to invest wisely so that your money can start to work for you. Not all investments, though, are right for each individual investor. To successfully reach your goals, you need to find the investments that are right for you. Here are a few investments you should consider making in 2018 to help you improve your finances and build your wealth.
Bond Mutual Funds
Many people shy away from investing because they are concerned about losing their money when a stock market correction or downturn occurs. If you’re a risk-averse investor, there are plenty of options for you that don’t expose your accounts to stock risks. One lower-risk option is to put your money into a bond-based mutual fund. These funds invest in a variety of national, municipal and corporate bonds. They then use the yields from those bonds to pay investors a return on their investments. Depending on the type of bonds the fund invests in, returns can range from about 1-5 percent annually. Some funds do produce returns of 10 percent or more. These funds invest in high-yield bonds that are typically at a much higher risk of default than the comparatively low-risk bonds that more conservative funds invest in.
If you’re comfortable with higher levels of risk but still feel that the stock market isn’t for you, peer-to-peer lending is an option you should look into. Peer-to-peer loans, as the name implies, are loans in which one individual supplies money to another. These loans are made through online platforms that vet borrowers with standard credit checks. Once a loan has been made, the borrower repays it by making monthly payments with interest. The interest on the loan is mostly paid to the lender. Only a small amount in fees being taken out by the platform that facilitates the loans.
Peer-to-peer loans offer different returns based on the creditworthiness of the borrower. However many investors realize returns of 9 percent or more by diversifying their loans. Best of all, one can start peer-to-peer lending without a huge sum of money. Most platforms require lenders to put up small amounts. In some cases amounts as low as $25, to fund portions of larger loans.
Even though there’s nothing new about them, precious metals are still solid investments that can be used to guard against currency slips and market drops. Though they aren’t for everyone, precious metals do find their ways into the portfolios of many value investors. Gold, silver, palladium and platinum are the most common metals for investors to take on, though some very niche metal investors also target less-known, high-value metals such as rhodium. For investors who want to get into metals but who don’t want to have to keep them laying around the house, there are also ETFs that are backed by and tied to the price of gold.
Real Estate Property
A final investment that is well worth making in 2018 is to purchase an investment property. Buying real estate to rent out or rehabilitate and flip is an investment strategy that has proven itself viable for decades. If you’re reasonably handy and know how to fix most major issues around a home yourself, you can even put your skills to work and keep your repair costs low on fix-and-flip deals. If you prefer a steady, reliable stream of passive income, renting out properties may be the better model for you. As a landlord, you can not only receive stable rent checks, but also build equity in the property.
If you want to invest in real estate, you’ll need more capital than most retail-level investors have available to make it happen. At Prime Plus Mortgages, we offer hard money loans that make property investments easier and faster to fund. Whether you’re looking to fund the purchase of a rental, a fix-and-flip deal or a short sale, we have the loan you need to turn an opportunity into a successful deal. If you have a property deal in mind, apply for funding from Prime Plus Mortgages today. You can be on your way to turning a profit from the piece of real estate you have your eye on.