The biggest secret of the rich is they know how to make money work for them. The rich doesn’t work for money – it’s really the exact opposite, their money works for them. Investing and compound interest are the tools the rich use to get richer. They often look not just for investments with high returns but also investments that are safe and secured.
If you are wondering how the rich does it or perhaps how to maximize your returns and retire early, here are five safe and viable ways to invest your money.
1) Put it into your 401K or IRA
If you are currently employed, you are most likely to have a 401K with your employer or perhaps an Individual Retirement Account (IRA) of your own. Your 401K and IRA have certain advantages when it comes to taxes and contributions are matched by your employer.
Putting money in your 401K or in an IRA is a great and safe way to prepare for your retirement while still maximizing potential interest and profits.
2) Buy an insurance package with investment features
There are a lot of different insurance packages available these days. Among all these different packages, the most ideal for soon-to-be investors is an insurance package that comes with investment features. These types of insurance packages invest part of the premium you pay in the stock market.
Putting your money in an insurance package with investment features not only protects you and your family from financial loss due to sickness or untimely death but also provides you with decent returns after a fixed term.
3) Invest in Treasury Bills and Treasury Bonds
Investing in treasury bills and bonds is another safe way to make your money work for you. Interest rates offered by treasury bills and treasury bonds are much higher than those offered by bank deposit accounts. These types of securities are also short-term usually lasting 3-6 months while others mature in a year – meaning to say, you can reinvest both the principal and the interest earned right after maturity, thereby taking advantage of compounding interest.
4) Buy a home
Buying a home is still one of the best financial decisions you could ever make. Your home may not be your “biggest asset” most financial advisors once deemed but it’s still an asset nonetheless. Buying a home and paying monthly mortgage is more practical compared to renting. Real estate also generally appreciates in value thereby making it a viable investment.
5) Invest in tax liens and tax deeds
If you can spare a couple hundred dollars, you can start bidding for real estate properties with delinquent tax liens and tax deeds. Investing in tax liens and tax deeds can provide you with good returns, usually ranging from 3 percent to 36 percent, depending on which state the real estate property is located.
These are just five examples of safe yet viable investment vehicles. There are certainly more vehicles for safe and viable investments you can look into.