Making money is not certainly an easy job. There are top 10 ways to drive high profits from low risk. It involves a lot of time and huge risks. Not everyone has the knack to risk a lot of money and then wait for a return on their heavy investment. Therefore, those who do not like risking huge amounts of money often end up refraining from any forms of investments all their lives. This in turns does not help them succeed in money matters and ends up leaving them at the same place for a long time.
Top 10 Ways to drive High Profits from Low Risk Ventures
In order to encourage you to invest and derive high profits, here is a list of 8 ways that will help you in getting a good return on your investment:
Lending a Peer:
Lending to someone is the best type of investment you can have for your money. It is a good option for those who do not want to invest in shares. But the risk factor in this sector can be high if you do not screen your loans efficiently. The default average on these types of loans has been known to be not more than 5% when dealt with properly. In order for you to screen your loans and not have to deal with defaulters a lot of Peer To Peer companies have developed screening processes. This screening involves a portfolio of the person applying for a loan. An internet tool will help you divert to the selected rate of return and show you your prospects. Even more fantastic is that your investment can start from as little as $25. However, these loans are not usually meant for student loans or entrepreneurs looking to start up a business.
If you are looking to lock down your money for a specific time, then look no further than a Certificate of Deposit. These certificates guarantee you a fixed amount of interest rate every month. This means that no matter what interest rate the market is following, you will get the interest rate that was set when you made the deposit. To benefit from the certificate of deposit, you must at least hold it for over a year. To cash the certificate before its maturity time results in a penalty. This fine may be 3 months’ worth of interest.
Make the Best of Low priced Shares:
The best way to yield a high result in your shares is to buy shares of a company which is running low at the moment. This does not mean that you buy shares of a bankrupt organization, but when only when a reputed company is going through a bad time temporarily. A good investor knows how a company can profit or in what situations will it be a loss. Make a wise decision before investing and when you have bought the shares, wait for the time to earn back its former glory before you sell them.
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Investing in utility stocks you have a low-risk factor of the price fluctuating. These stocks normally remain stable and pay dividends close to 3% more than treasury securities. These stocks are rated by rating agencies the same way that bonds are dealt with. They can be sold anytime without having to face a penalty charge. The only downside is that they are taxed on dividends or any capital gains that you may have earned.
Fixed annuities are perfect for those who are looking to save for their retirement. These grants are designed to give higher yields with safety or principal. You can put in any amount of money you want and let it increase in numbers without taxation. Some fixed annuities offer a higher interest rate at first for a short while, although most of these annuities offer not more than 1% of profit rates at a regular base. The only risk involved with it is, in the case of withdrawal before maturity you might risk liquidity. This happens because of penalty fee on pre-mature withdrawal and charges applied by the insurance carrier.
Income funds help those seeking a higher profit in a risk-free way. These bonds can be invested in a variety of different income generating things such as mortgages, utility stocks or senior secured loans. People looking to invest in funds only need to research before they pick their preferred area of investment. They do run the risk of a political affair if it’s an international fund.
Cash Value Life Insurance:
Cash Value Life Insurance can be an unconventional method of investment. You don’t directly benefit from this yourself; however, your beneficiaries can yield from the sum that you had allotted. There are two types of insurance, term life insurance, and whole life insurance. It is the accumulated value that has been provided by you throughout your life. It is an intelligent way to profit your family after you have passed away and increase their wealth. While it does require your death to be released, it still is a venture that has no risk at all and a full-fledged advantage.
Rewards from Your Credit Cards:
A credit card may be there to help you in your transactions, but it can also result in providing you with some hidden rewards. Most credit card companies provide their cardholders with gift points when they spend a specific amount of money. The reward could be in the form of gift cards or cash back on your purchase. This is also not the most conventional way to invest but you do get a return on your spending which is an investment in its own accord.
Unlike the most conventional methods to drive high profits, these methods have low risks or no risk at all of you losing money on your investments. The profits in most of these cases are good; however, they cannot be compared to high selling shares in the stock market. Anyone who intends to follow any of the points above can expect to lead a tension free comfortable life.