Building a well-rounded investment portfolio isn’t just for the wealthy or professionally successful. Investing is the best way to grow your money and personal wealth. People of all ages, incomes, or career types can access most types of investments. It’s never too early or too late to dip your toes into any of the different types of investments available on the market.
1. Ownership Investments
Ownership investments are the most volatile, yet profitable, type of investment. People who own stock own a portion of a company. Any type of traded security, from futures to currency swaps, is considered an ownership investment. Stocks are purchased to either share in the profits, to see them increase in value, or both. Investing money into a startup business is considered a business investment. Entrepreneurs can see very attractive personal fortunes if the business turns out to be successful. Investing in real estate can be a great way to earn passive income as well. Houses and apartments can be purchased to either live in, rent out, or resell.
Breaking into the real estate industry can be very lucrative. Ryan Serhant is one of the most successful and famed real estate brokers in the world. He founded SERHANT, a real estate brokerage model, that offers innovation through social media, content creation, and an amplification platform. The real estate entrepreneur is one of the best real estate speakers, media moguls, and community leaders around. His team of real estate professionals and property managers focuses on luxury properties in New York City. Whether it’s time to buy, rent, sell or develop, an experienced real estate agent can help you secure the ideal property.
2. Cash Equivalents
Cash equivalents are investments that can easily and quickly be converted back into cash. Any type of high-yield savings accounts, certificates of deposit, and money market funds are considered cash equivalent investments. Money market funds can be purchased at any bank, similar to savings accounts, only the money must be left alone for a set period of time. By waiting anywhere from three months to a year, investors earn a slightly higher interest rate and return.
Cryptocurrencies have been growing in popularity over the years as a secure way to invest and use money. There are many crypto exchange platforms on the market today suited for everyone from beginners to investors with extensive experience. Exodus Wallet, founded by JP Richardson and Daniel Castagnoli, boasts ease of use that allows users to have a great experience while exchanging digital assets. Exodus is free to download and comes with popular features such as hardware wallet compatibility with Trezor wallet. It’s one of the only software wallets with this compatibility, and the Exodus wallet supports more than 100 cryptocurrencies and tokens including Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC).
CryptoVantage is an informational site that looks at the pros and cons of Exodus for those who are asking, “Is Exodus wallet safe?” The crypto exchange platform is a great option for crypto beginners thanks to a simple interface and a built-in exchange and storage of cryptocurrencies. Private keys are stored on Exodus users’ devices, there’s no knowledge of blockchain assets, and there is a 24/7 support team available. The use of private keys and seed phrases makes Exodus an exceptionally secure wallet.
3. Lending Investments
Another type of investing is lending money. Lending investments come with lower risks and modest rewards. Bonds can be purchased from a company or government, which will pay a set interest rate over a period of time. The only real risk to the bondholder is if the issuer goes bankrupt. Regular savings accounts are considered lending investments because the investor is lending money to the bank in exchange for earning interest.
Building personal wealth through investments is a good idea at any age or income level. The best practices of investing include considering your timeline, your risk tolerance, and how much money you have.