There are several ways that you can invest with your money, either offline or online. Hereby, I will list a few best ways to invest both offline and online.
One of the most popular online investments will be Domain Name Investing. Domain name market has been growing fast where it has increased an average of 87% per year since year 2001. This is on average 5 to 6 times that of the S & P 500 Index of stocks. That means with a $1,000 investment, you will earn approximately $870 after 1 year. Compounded $1,000 for 5 years will gain you approximately $22,866. Example of highly profitable domain name is Sex.com, which has sold for $14 million and business.com, which has sold for $7.5 million.
To be profitable in domain name investing, besides some cash that you need, you must also have a good vision for the future and also some luck. By using the right tools will help you to pick the domain name that will be valued higher in the future.
The second way of investing is Purchasing Bonds. There are different types of bonds in the market. Some have no risk but lower return while the others are very risky with higher return. The average return of Bond in US is approximately 4.3% per year. That means with a $1,000 investment will yield you approximately $43 after 1 year. Compounded $1,000 for 5 years will yield approximately $1,234.
The third way of investing is Stock Market. There are a great variety of stocks that you can choose from where you have the maximum control over your money. The market is on an average of 13% gained per year over the last 30 years. That means with a $1,000 investment will gain you approximately $130 after 1 year. Compounding the $1,000 for 5 years will return approximately $1842. ETrade.com and Ameritrade.com allows you to trade online in stock market.
Another online investment that you can involve is providing loan to people in need and earn from the interest charged. With this, you become your own investment banker. Example of website that supports this type of online investment is Prosper.com. At Prosper, there are thousands of people who want to borrow money at interest rates of 5% - 27%. You can access to these people and also their credit rating to assist you in making the best decisions. Based on a research, a lender normally can earn an average of approximately 15% per annum. Thus, $1,000 will earn you approximately $150 a year. 5 years compounding a $1,000 will return approximately $2,011.
You can also invest through purchasing a business such as saloon, restaurant and etc. Businesses in US normally sell for approximately 2 to 4 times of their annual net profit. For operational work, you can employ managers to run the business. The capital you need to buy a business may not as much as you have thought of. The business for sale online at businessesforsale.com is averaged sells for about 3.5 times of its net profits. If you are interested to buy a business, you can explore more from the following website where various businesses for sale are listed there:
- http://www.businessesforsale.com
- http://www.bizbuysell.com
- http://www.bizquest.com
Investing in purchasing a business brings you an average of 30% profit per year. Thus, $1,000 capital will earn you approximately $300 per year. 5 years compounding of $1,000 will bring you approximately $3,712.
Investing in Real Estate is also one of the popular ways of investing. The real estate is booming since 2000. However, the return from Real Estate on average is less than the stock market. Real Estate has an average return of 11% per annum. $1,000 will yield approximately $110 after a year. 5 years compounding of $1,000 will yield approximately $1,685.
For risk free investment, the common way will be saved your money in a Certificate of deposit. It can also be referred as fixed deposit. With fixed deposit/certificate of deposit, your money will be locked in the bank from 1 month to even years depend on your selection on the return rate that you are interested. However, the return rate for this investment method has dropped significantly compared to few years ago. You can check for the current rates of Certificate of deposit at http://www.bankrate.com/brm/calculators/investing.asp
Another risk free investment and probably the worse way to invest will be saving your money in a regular saving account. The average savings account (non money market) pays about 0.20% interest per year.
0 comments:
New comments are not allowed.