Investment Strategies to Turn into a Savvy Entrepreneur
If you have some cash on your hands and still don’t know how to make the most of it, there are several investment ideas that all entrepreneurs will love. While some entrepreneurs might choose to invest the money in their own businesses and make them more efficient, potentially, a diverse portfolio will weight more in this case. It's a well-known fact that diversified portfolios are less vulnerable to market changes. They are also more resilient to economic and political changes in markets. This is why a diversified portfolio is always desirable. To achieve the perfect diversification level, below are 5 investment ideas to turn you into a savvy entrepreneur and investor.
Online Real Estate Investments
Real estate investments come in many forms today. They are a desired addition to investment portfolios but, still, not everybody is thrilled to be a landlord. But in the digital age, it’s no longer necessary to deal with tenants and paint the walls of your new investment, to be part of the game. Platforms such as Fundrise.com let you invest in private real estate assets without having to deal with the small and annoying parts of being a real estate investor.
The starting investment rate is $500, which opens the investment gates to many aspiring investors and savvy entrepreneurs. If you have more money to play with, you can invest in major real estate markets like D.C., Florida or Los Angeles. After opening an account, you will receive support to supplement your income through adequate plans. You will also enjoy plans to balance your investing strategy and ensure long-term growth.
Similar platforms perform incredibly well when it comes to return on investment, in spite of the relatively novel investment solution they offer. Besides, they are expected to grow and become more profitable in the near future.
Peer-to-Peer lending has been for a long time a desired alternative investment solution. These transactions take place on specialized platforms, like Lending Club, and are great no matter how much money you have on hand to invest. While not their specialty, savvy entrepreneurs can lend money to other fellow businesspersons or private users, for that matter.
After you make an account, you can spread your investment across multiple loans, and you will get a return of approximately 4%-6%.
Although the starting investment amount is higher than in the first idea’s case - $1,000 – you will get more for the same amount invested. Investing in peer-to-peer lending platforms is a great and easy way to supplement your income and even dream of early retirement.
You’ve heard about Forex Trading. The foreign exchange market is the place where currencies are traded – hopefully for the best conversion rate. While Forex Trading is a bit more complicated to comprehend, a good trading platform will offer you all the necessary basics and guidelines to follow.
Finding reliable currency trading brokers is also important when contemplating this investment opportunity. They can make or break the entire experience.
After you research your options in regards to brokers and brokerage agencies, you will join a decentralized global market where all the world’s currencies are traded. Just like stocks, you can trade currency based on what you think its value is and how much you might be able to profit from trading it for another currency.
For instance, if you think a currency will increase in value, you can buy it. If you think that it will decrease, you can sell it while it is still at an advantageous exchange rate. The most traded currency pair is EUR/USD. The first currency in a pair is the base and the second is the counter. The difference in value between the two is the spread.
Trading foreign currency is an immense investment opportunity all entrepreneurs should consider. It has generous profit margins, as long as the broker is carefully chosen. You will have access to valuable resources when it comes to trading currencies that will introduce you to the matter.
Health Savings Accounts
Another interesting and well-performing investment idea for savvy entrepreneurs is investing in a health savings account. If you have some money to invest in something with a high return on investment potential, then HAS is the solution here. These accounts are available for individuals and families with high deductible plans and offer a wide range of tax benefits.
The money you contribute with to HSAs are deductible on federal taxes and the amount grows until the account holder is ready to withdraw it to cover healthcare expenses. In 2019, families are expected to save up to $7,000, and individuals will be able to save on a similar plan up to $3,500.
All this money can then be invested in other areas of financial interest: your business, stocks or other options in your portfolio. Once the account holder hits 65 of age, they can withdraw all the money in the account, without any penalty.
Another investment opportunity for those who want to diversify their portfolios is commodities investment. Some of the most common commodities are precious metals and industrial metals, energy, and agricultural commodities.
The great thing about these commodities is they are not influenced by changes in the stock market, and they can prevent your portfolio from losing value in terms of uncertainty and market events like crashes. One of the main determinants when it comes to these commodities prices is the supply and demand. They are also relatively sensitive to changes in the geopolitical and economic climate.
Collectibles are a valuable addition to all investment portfolios. Rare coins, artwork, wine and statues all make solid alternative investment opportunities. Once again, their price is not determined by market conditions and not even on geopolitical conditions. They mainly depend on how well preserved and managed they are and how much buyers are willing to pay for it.
Investment opportunities can help entrepreneurs achieve higher financial stability rates and can prevent their financial decline even in times of industrial and economic uncertainty. The more diverse their investment portfolio, the lower the chances to find themselves in unpleasant investment spots.