Up and coming entrepreneurs are always looking for new ways to diversify their portfolio, which is why they always keep their eyes open for new investment opportunities. It doesn’t matter if you’re a millionaire or up and coming entrepreneur, there are a variety of different investments you can make to help grow your portfolio and expand your wealth.
The following is a list of five investments that every entrepreneur should consider.
Foreign Currency.
Although you may think of investing in foreign currency as something exotic or full of uncertainty, it’s relatively safe, not to mention a great way to diversify your portfolio. You might want to consider investing in the IQD or Iraqi dinar. Following more than 20 years of war, liberation, and sanctions, the Iraqi economy has the potential to become stronger than it has been historically.
Real Estate.
As long as people are occupying this planet, there will always be a real estate market. Real estate is one of the most diverse and versatile markets to invest in, which is an investment that often increases over time. There are a variety of different real estate investments you can make, which includes rental properties, land, along with commercial and residential real estate.
Here’s a fairly exhaustive list of strategies to find properties for real estate investing from the Groundbreaker team.
Treasury Bonds.
Treasury bonds are similar to municipal bonds. While municipal bonds are issued to local and state governments, treasury bonds are issued by the federal government. Treasury bonds are one of the safest investments you can make, which technically garner no interest, but are sold at a discounted rate. A treasury bond will usually take a year or less before they mature, but once they mature the government will pay you full face value. For example, if you pay $4,800 for a $5,000 treasury bond, you’ll earn $200 on your investment.
Corporate and Municipal Bonds.
Investing in corporate and municipal bonds is always a good investment decision. Corporate bonds are debt securities issued by companies, which provide higher interest payments than government bonds, but usually will come with higher risks. Companies are generally believed to be more likely to default than developed world governments, which is why corporate bonds are often considered higher risk investments. Your best bet is to only invest in investment-grade corporate bonds, which are bonds issued by companies with strong credit ratings. These types of corporate bonds produce higher growth than government bonds and are significantly lower risk than investing in equities or property.
Corporate bonds are a strong buffer against share market volatility, which can produce smoother and less volatile returns. Corporate bonds are often used by investors as a way to spread their portfolio risk by being exposed to a range of issuers and industries, which minimizes the impact of a default on your portfolio.
Municipal bonds, which are commonly known as muni bonds are issued when the government needs to borrow money. These types of bonds receive a federal income tax exemption, which is a great investment if you’re trying to minimize your exposure to taxes, but this can vary depending on the state you live in. One of the biggest advantages of investing in municipal bonds is their extremely low risk and the likelihood of the borrower defaulting is very low.
Rewards Checking Accounts.
One of the best investments you can make is investing a reward generating checking account, which is also known as a high-yield checking account. This type of checking account may require you to pay a higher interest rate than your typical savings account. For you to earn those higher interest rates, you will have to meet certain requirements. This type of checking account will usually have an interest rate as high as 1.65%. This is significantly higher than a money-market account, which is typically no higher than 1.11%.
Unlike a savings account, which will usually require you to keep a minimum balance, rewards checking accounts don’t require a minimum balance. However, they may cap the amount of money you can receive the top interest rates on, which is usually $25,000, but oftentimes it can be much lower.
With a reward checking account, you can write as many checks as you like per month, but it may require you to make a certain amount of debit card transactions each month to earn the maximum interest rate. You can make as many transactions as you like without having to worry about being subjected to federal regulations, which includes debit payments, checks, and automatic transfers. For you to qualify for a reward checking account, it will require you to sign up for either direct deposit or automatic billing.
