With the stock market at near-record high levels, I’ve had numerous questions and doubts for the future production of the stock market. While everyone wants to see a growing economy and investment fund balance, no one wants to set themselves up for a huge drop in assets thanks to hype over a mediocre economy. In other words, I’ve started to question how safe my investments are and what I can do to put my mind at ease.
As a result of this path of thinking, I thought it would be beneficial for you to read about successful ways that you can invest money and not have to worry about losing it all. In other words, what are the safe investments and why.
Real Estate Investing
Whenever I think of the stock market’s volatility, I can’t help but think of real estate investing. While this is still influenced by external forces, it is remarkably more stable than the stock market. Your revenue from a rental property comes entirely from the rent minus the expenses and mortgage. Regardless of whether you got a NPBS variable rate mortgage or fixed rate mortgage, it’s possible to have a nice healthy cash flow from real estate. Most experienced real estate investors connect the rent value as having a correlation with the salaries in the area. This makes a lot of sense. If there is not a surplus of steady, good-paying jobs, there won’t be a demand for your rental property and you will have a tough time finding a renter and revenue from your investment. Nothing is full-proof, but it’s a great alternative to the risky stock market.
Many retirees prefer a stable income to a slightly higher and yet more volatile investment. This is where annuities come in. Insurance companies provide people with a steady cash flow from a lump sum investment made upfront. While it’s almost guaranteed that you won’t get the highest returns, it can be a great way to diversify your investments.
Another full-proof investment is to keep your assets liquid – or in cash form. While this will provide you with an even lower rate of return, your money won’t be put at risk in a high-interest savings account. Depending on the bank and amount of money in savings, some or all of it will be insured as well.
While you don’t want to be too conservative with your investments because you still need to fight against inflation, if you are worried about your investments being at risk, it may be time to move some or all of it into a safer investment. Always take time to be honest with yourself about your risk tolerance and do your best to match your investments up with your tolerance.