Category: Blog

Once you have secured yourself through insurance and have put aside a substantial amount of savings, then it is high time to look for ways to grow your money.

Investment in stocks through mutual funds and government bonds is always a good idea. However, it is important that people diversify their funds and resources.

The stock market is a very promising source of fortune but the stock market is very volatile and it can be precarious. It would be nice to have a part of your money invested in other places. So after you have learned how to invest in stocks, you should learn other investment ideas that would make your hard-earned and carefully-saved money grow.

Below are a few options other than the stock market.

1. Rental Properties

Money required: As low as $500, $1,000, or $10,000

A lucrative alternative to the stock market is real estate investment. Compared to the stock market, real estate is less volatile. The prices of real estate in Singapore do not fluctuate that much. In fact, they keep on rising. Investors do not worry about investing long-term as short-term fluctuations are unlikely to happen. Hence, real estate is really a good investment to put your money in.

Investing in real estate is a very good source of passive income. Investors keep on earning returns from rent. Rent has never been this expensive. As a place to live or space to conduct business is a necessity, Singaporean residents and businesses will always continue to find a way to pay up the rent.

There are three various ways to invest in real estate.

The first one is buying the property directly. As real estate will unlikely depreciate but more likely to appreciate value, buying property now is very good alternative where returns are guaranteed.

The second way is through real estate limited partnership (RELP). RELP is composed of investors, usually up to 30 members, who pool their money together for the purpose of purchasing, leasing, and developing real estate. There is a general partner that assumes full responsibility and there are limited partners whose liability is only limited to the amount of money they contributed. This offers relatively high expected returns but with comparably high risks.

Lastly, real estate investment may be in the form of a real estate investment trust (REIT). You invest in real properties managed by your chosen REIT. REITs use investors’ money to purchase, manage, and operate properties. In a sense, investors become part owners of the properties bought, managed, and operated.

Such properties earn in the form of rental income. Part of that earning is paid in dividends to investors.

2. Farmland

Money required: $10,000

Farmland is probably the biggest opportunity you have probably never heard of. There is an increasing demand for high-quality food but the supply of lands continues to decrease due to development efforts brought by globalization. Hence, farmland is seen to become more essential over time.

Investments in smart agriculture technologies that boost crop produces are expected to generate profits. Investments in farmland have become more profitable than they have ever been before especially that the government of Singapore is taking a more active role in promoting agricultural technology (AgriTech) innovations.

In fact, AgriTech all over the world has skyrocketed by 49% in 2018. Such indicates a growing interest in farmland globally.

You may invest in farmland through AgriFood B2B eMarketplace.

3. Precious Metals

Precious metals like gold are distinguishable from other asset classes like the stock market, real estate, bond, and equities in terms of the economic forces that determine their prices. Gold is usually bought during the extreme financial crisis or at times when high inflation is expected because it acts as a diversifier that mitigates losses during market stress.

Investments in gold are highly encouraged because this precious metal is highly liquid yet very scarce. It may give you more competitive returns than what other financial assets can give you.

Investments in gold come in many forms. You may opt to buy physical gold (bars and coins). The more common way nowadays is through Internet Investment Gold (IIG) where investors get to buy physical golds online and get them stored in professional vaults.

You may choose to purchase gold-backed exchange-traded funds (ETFs). GLD is a gold ETF.

4. Cryptocurrency

Cryptocurrency is an internet-based medium of exchange that is distributed across a large number of computers. No central authority runs it. Its decentralized nature keeps cryptocurrency from government control and interference.

Cryptocurrencies are very portable, inflation resistant, transparent, and divisible yet many are still afraid to venture into them.

The most popular and most valuable blockchain-cryptocurrency is Bitcoin. However, there are many other alternate cryptocurrencies that offer various specifications that may be adequate to your liking or preference.

5. Business Ownership

Globalization has made businesses a good alternative to the stock market when it comes to investments. Invest in a promising business venture like a restaurant, technological school, by putting your money in either private equity or venture capital. However, to be able to do that, you have to be accredited investors.

6. Cash and Cash Equivalents

This alternative to stocks is an investment on a short-term basis. The maturity period is usually pegged at 90 days. 

It includes bank accounts and marketable securities and should be easily convertible to cash. Thus, equity and stocks are not considered cash and cash equivalents. 

In other words, cash and cash equivalents are the companies’ cash on hand. Those that can be invested as cash and cash equivalents include cash, foreign currency, and cash equivalent. 

This kind of purchase is a low-risk venture partly because there is little risk that its value will change, unlike stocks and equities. If you are interested in short-term ways to invest then this is worth considering.

7. Peer-to-peer Loans

Peer-to-peer loans or peer-to-peer lending is a new and straightforward market stocks alternative. It is straightforward because its meaning is already indicated in its name. Basically, you will lend money to your peers and charge them with interest rates as agreed upon.

Money required: $1,000

This alternative investment is one of the most viable investment options you have. It is comparable to lending a friend some cash with the expectation of getting paid the whole amount with interest rate. Peer-to-peer lending involves some P2P platforms like Prosper and Lending Club where all you have to do is to invest a particular amount, say $1,000.

All lending transactions can be facilitated through these platforms. Returns are more likely to transpire than losses because there will be more than one borrower of your investment. One defaulting borrower would not automatically put your investment to waste because only a portion of your money was borrowed.

Remember, however, that this investment option is a high-risk, high-return way to invest. Make sure that you do not rely on this solely for your retirement money.

But when you have some extra cash, then peer lending is an opportunity to diversify your investments. Sign up for peer lending in a trusted online platform and be critical on who you lend your money to. You will surely earn from the interest rates when you manage your investment well.

8. Collectibles – Alternatives to Penny Stocks

Investing in collectibles is a long term investment because a lot of items increase in value through time. Antique artworks, furniture, and jewelry tend to shoot up in value through time. 

Its value also increases if it has a significance in history and culture. This way of investment is very interesting especially if you have a knack for certain hobbies. 

For example, a lot of sports enthusiasts are also into sports card collection. They take the time and effort to acquire certain cards that are rare and limited. 

For collectors and hobbyists, it is satisfying to acquire coveted items. Secondary to this is the potential of turning these collectibles into cash. 

The rookie sports card of LeBron James, for example, fetched a staggering $1.8 million. If you are into this hobby, keep your collection in mint conditions because you would never know the potential value of that investment in the market in the near future.

9. Fine Wine & Fine Art

Similar to the collectibles, fine wine and fine art are also long-term investments. As you might already know, these two items earn more value the older they get. What is good about fine art, say a painting, is that you may buy it from a random artist at a small price, like $200. And then a decade later, that random artist grew world-famous. 

Suddenly, your $200 investment started to gain thousands of dollars in value in just a decade. This kind of scenario is highly possible when it comes to a fine art. 

So next time you feel guilty for buying that piece of painting for your small art collection in your living room or for buying that bottle of wine you know you won’t open anytime soon, consider the boundless possibilities that can grow out of that purchase.

10. Angel Investing

If you have family or friends who are starting entrepreneurs or have a great start-up idea, be an angel and give them a head start by becoming an angel investor. By becoming one, you are taking ownership of equity to their start-up. You can either provide a one-time investment to help the start-ups hit the ground running or you can also inject funds a couple of times as the young company takes on the most difficult part of starting a business–the initial stages. 

Angel investing, however, is a risky business. Make sure that you are investing the amount of money that you can afford to lose. Since you are investing in start-ups, then the idea is not something tried and tested. 

However, angel investing also requires thorough scrutiny of promising business plans. If you are to be proven correct in your appraisal and the start-up became big, then you will reap the reward of being a believer.

Closing

You yourself can also be an investment. It is always a good idea to learn new skills. You may enroll in several short courses and acquire certain certifications that would make you eligible to take side-hustles. 

Invest in acquiring marketable skills that can give you a chance to be an entrepreneur yourself. Aside from this, you may also start working with a life coach or a financial coach that would dedicate time to looking through your personal growth. 

Lastly, take a more aggressive approach to learn how to invest. Move over googling “how to invest stocks.” Make your research more systematic and scientific by taking investment courses or talking to registered investment consultants.

Without a doubt, all of us want to earn more. But, the question has always been, how?

In this article, you will read 10 of the easiest tips and techniques to earn a 10 percent rate of Return on Investment (ROI). While you might think that this percentage is too little, note that these savings can sum up a large amount of money when accumulated. Find which of these ways works for you and your situation, especially during recession and pandemic.

Top 10 Ways To Earn A 10% Rate of Return on Investment

1. Real Estate Investing

One way to earn a 10 percent ROI is real estate investing. There are multiple mechanisms to do this. You can choose to rent out your property. Just make sure that the rent rate is more than your monthly mortgage or loan payments. If you don’t want this type of real estate endeavor, you can try other methods too.

You can also buy and sell homes to earn an income. A pro tip here is to invest in single-family rental homes. These types of homes sell like pancakes.Experts even claim that these types of houses will continue to grow even during and after the pandemic. With the work-at-home option growing popular, people choose to stay in these comfortable and affordable homes even with a high rent rate or an expensive price tag.

If you want to venture into the market of single-family rental homes, you might want to check out companies like Roofstock. The company is dedicated to this type of rental service. They offer to buy, own, and sell rental homes, so this is the best place for you to find potential clients and customers. They are one of the best in the industry, but you can surely look for other companies in the same field.

If investing in single-family rental homes is not right for you, you can also try to invest in real estate debt. Here, you can invest in the loans made to borrowers. As these borrowers pay back their loans, you get to earn you money as well. The nice thing here is that you do not need to manage the property while being part of the thriving real estate investing industry. You can check out Peerstreet if you want to try this out.

Another option to enter real estate investing is to invest in corporations that give dividends or dividend stocks. It may take time before you profit from these real estate investments, but they are relatively more stable sources of income. They are for a long term investment. You might have to wait for five years for your first dividend, but you can earn per month or per quarter after that. Check out Fundrise or Streitwise if this type of real estate investing works for you best.

2. Paying Off Your Debt

If you have an existing loan, chances are you are losing a lot of money because of the interest rates you are paying back. One easy way to earn a 10 percent Return on Investment is to pay back your loans so you can save money. The longer you are keeping your debt, the higher the interest rate you are paying. By doing so, you are no longer charged with the interest rate each month, thereby making you save a ton of money per month.

Just think of this scenario – your credit card debt charges you around 16 percent per month. The longer time you wait to settle your debt, the more money you have to pay the loan agencies per month. The same goes for your other loans. For example, student loans have big interest rates, so you have to pay them back as soon as you can.

If you cannot avoid taking loans, you have to apply to the best credit institutions or to take the best credit cards available in the market. Only take loans with fair and reasonable terms. If you fail to do so, this could hurt your finances in the future.

3. Long-Term Stock Trading

To invest in stocks for the long term, you have to get in touch with an investing company and let them manage your money. Long term stocks are conservative because the Robo advisors or financial advisors put your money into various businesses. They are the ones to choose an option for you. In doing so, you, as an investor, are not taking too much of a risk.

One downside of this type of stock trading is that it might take months or years before you start earning money. But once your investment has given your due diligence, you can start earning high returns.

If this option fits you and your financial goals, you can contact a trusted bank, a discount broker, or even a smartphone app. A financial advisor or Robo advisors will then choose where to put your money.

4. Short-Term Stock Trading

In long-term stock trading, you make trades for a long period of time, like for several months or often years. In contrast, in short term stock trading, you buy-and-hold trade quickly in days of weeks. This is a riskier type of investing because you are only given a short period of time to make trades. The short term fluctuations in the market can potentially turn you into a financial success overnight or potentially lose your savings.

Honestly, the short term stock trading is not meant for everyone. There is a learning curve if you wish to do this for a living. Remember to read various resources before jumping into this market to come in ready and prepared.

5. Starting Your Own Business

If you have a trust issue and would not allow other people or organizations to manage your money, you can always start your own business. Once you build a successful business endeavor, you can ensure your continuous 10 percent earning per month.

To get started in your own business, you have to begin looking at the market familiar. If you are a fan of a fashion, technology, or food trend, make your business revolve around things you know and love.

One of the best tips when starting your first business is to use your personal capital. This is to minimize the risk of being in debt. You do not need to start big here. You can start small, grow your business, and then acquire investors once you are confident about your business plan.

If you plan on investing in a small enterprise, you should get familiar with Facebook, Twitter, Instagram, or other social media marketing tools. These are affordable and easy-to-use tools proven to attract the money market. With limited funds, you might have to do much of the work in the first few months of your business.

6. Art and Other Collectibles

Do you know that your collection hobby can be turned into a profitable business as well? Art and other collectibles can diversify your investments. Make money by buying popular collectible items, keeping them in good condition, and then selling them to the right customers. Navigate Facebook, Twitter, and Instagram to know what items are hot among collectors.

Some of the common collectibles in the market today are books, toys, legos, paintings, and many more. Popular media items, ones released by corporations like Disney, Warner Brothers, Mattel, etc. are also safe bets when it comes to earning your 10 percent ROI. And of course, try to stick on the market that you are already familiar with. If you are into Harry Potter, for example, start your collectible items within this realm.

7. Create a Product

If the stock market or real estate investing does not appeal to you, you can always try to make products that could entice people. One of the useful tips in creating a product is to get an education about the industry before designing or developing a product.

You do not just produce something and sell it to others. Instead, you have to gather the necessary information from your potential clients to ensure that you create a marketable and profitable item.

When creating a product, do not limit yourself to the fashion or food industries. For one, digital products are popular among younger consumers today. You can create a blog, vlog, website, or other online products and earn 10 percent of ROI monthly.

8. Junk Bonds

Given the economic crisis we are currently facing, investing in junk bonds can be the best investment option you can do today. Junk bonds refer to bonds rated below investment grade by the top rating agencies in the country. Most investors would not choose to invest in junk bonds because they carry a higher risk of default than other bonds. But, take note that junk bonds have the potential of significant price increases when the company’s financial situation improves.

Remember that investing in junk bonds is like betting to a given business. This means that before investing, you have to gather all the relevant information to bet on the business that is likely to be a success in the next months or years. If you have to invest in the right junk bonds, the return can be big for you.

9. Peer-To-Peer Lending

Peer-to-peer lending, otherwise known as P2P lending, is a mechanism where lenders are matched to borrowers. You have to use a third party business like Lending Club or Prosper.

In Lending Club, for example, you can earn a rate of return on investment of over 10% per year. For more conservative investments, the ROI is at 6 percent, while for more risky investments, you can even earn a return on investment of 20 percent or more per year.

10. Master Limited Partnerships

There are basically two paths to take under the master limited partnerships. First is the so-called limited partnership is where you provide capital for the business and eventually receive income distributions. Here, you become an investor because of the money you gave to the business as their capital.

On the other hand, there is the so-called general partnership. Here, you help manage the business. Eventually, you get a return on your investment in the form of a compensation basis monthly.

Note that Master Limited Partnerships is similar to trading stocks. They can be risky and are not for every investor. If you wish to proceed, you might want to consult a financial advisor before committing as an investor.

Which One is Right for You?

If you have some funds in your savings accounts, your money is sleeping because of the extremely low-interest rate it earns from the bank. In some cases, inflation could even decrease the value of your funds. If you truly want to improve your personal finance and grow your funds, you have to start building your investment account. As an investor, begin with the industry familiar to you.

Before investing, you have to be certain how much money from your savings account you are willing to use in investing. Also, create a target on when you want to start earning your ROI. All these factors are essential in choosing which type of investment you are willing to make.

While not necessary, it will not hurt you to know the basics concepts in finances and investing, including inflation rate, interest payments, money market fund, credit score, government bonds, and many more.

You do not need to invest a large sum of money. You have to be certain that you are investing in a field with a high rate of return or a growth rate. Make the right decisions by getting insights, suggestions, or education from groups and individuals who are experts in investing. There are more tools online than ever that could make you start earning that 10 percent ROI of interest monthly.

Conclusion

As seen above, there are more ways than ever to start earning that ROI of interest monthly. If you are afraid to start investing, financial websites, consulting firms, and business organizations can be found on the Internet. These groups and individuals are willing to help you and guide you in investing your finds to rightful businesses or endeavors.

One of the most reliable financial websites today is Investoralist. We have tons of reading materials, tips, and guides for you. We can help you understand seemingly complex concepts like compound interest, day trading, real estate investing, mutual funds, money market funds, and more. Just send us your queries and concerns, and we will provide you the necessary information you need.

If you think of banks, you tend to think of financial institutions where you get to store your money which you eventually withdraw at a given time. But, there is another type of bank that not only stores your money but also grows it. These are the so-called investment banks.

Compared to commercial banks, investment banks could provide small and growing businesses as well as individuals with high net worth to invest and help raise money to a company while also taking a stake in the company. Though complex, dealing with investment banks can be financially rewarding.

To know more about investment banking, read about the top 10 investment banks in the world. We chose them based on various criteria, including revenue number, global reach, employee headcount, income, etc. Note that not all investment banks are made equal. If you wish to deal with one in the future, you should research more on which of these institutions fit your profile as an investor.

Best All in All: Goldman Sachs

One of the Top 10 is Goldman Sachs which is an investment bank based in New York City. It is an American international company that also offers financial services to its clients. Aside from investment management, Goldman Sachs offers services in asset management, securities, securities underwriting, and prime brokerage.

With about 150 years of experience as a financial institution, Goldman Sachs is one if not the largest investment bank in the world. In 2019, the company earned a revenue of US$36.546 billion while its total assets were recorded at US$992 billion. In terms of awards, Goldman Sachs was ranked by Fortune as the 62nd largest US corporation with total revenue.

Best from a Big Institution: JP Morgan Chase

JP Morgan Chase is an American investment bank based in New York. It is considered a global leader in the investment banking industry as it has one of the largest client bases in the entire world. Today, the company has around 200,000 clients ranging from governments, corporations, educational institutions, banks, and individual investors. They have a global reach expanding to around 100 countries.

In 2019, the company reached a revenue of around US$115.6 billion. Meanwhile, they had a net income of around US$36.43 billion. With around 200 years of history, JP Morgan has received awards from groups advocating for women, people with disability, veterans, and many more. Without a doubt, the company is one of the largest investment banks in the world.

Best in Europe: Barclays

Barclays is a British multinational investment bank with more than 325 years of history in banking. It operates in more than 40 countries and has around 80,000 employees tasked to provide service to the clients. While Barclays does not have a global reach as wide as the first two investment banks, it is considered as the best in Europe. Its headquarter is in London, England.

In 2019, the company had a revenue of around US$28 billion. Because of its excellent service in its electronic trading platform, the company won the Electronic Platform of the Year award from the GlobalCapilta Americas Derivatives Awards 2019. Today, the company continues to grow its reach not only in Europe but also in Northern America and Asia.

Best for Innovation: Bank of America Corporation

The Bank of America Corporation is best known for bringing innovation to the field of investment banking. It is an American multinational investment bank based in North Carolina but has central hubs and offices in New York City, London, Hongkong, Dallas, and Toronto. This bank has brought innovation by merging and partnering with other top financial institutions, including Countrywide Financial and Merrill Lynch, to name a few.

The company earned revenue in 2019 amounting to US$91.24 billion. The company was awarded as Top Global Bank on Fortune’s “Change the World” list in 2020. Its quality service in other parts of the globe has also received recognitions. In particular, it was awarded by Euromoney the Best Transaction Services Bank in Latin and North America this year.

Best for Markets: Morgan Stanley

Also included in the top 10 of the global investment bank is Morgan Stanley. It is known for its effective and successful contribution to the growth and development of the capital markets as well as its effective and efficient wealth management. It is an American multinational investment bank that also offers financial services. Its headquarter is located in Manhattan, New York City. Currently, Morgan Stanley is found in more than 42 countries in the globe employing more than 600,000 individuals from various nationalities. It offers services, including investment management to different types of clientele, including governments, business institutions, and individuals.

Morgan Stanley gained revenue of US$41.4 billion for 2019. In the same year, it was awarded the title of World’s best bank for markets by Euromoney. According to the award-giving body, Morgan Stanley has shown resilience in spite of problems in the market. It was able to provide growth in the investment of its clients or customers.

Best for the Asia Pacific: Deutsche Bank

Another prime investment bank is Deutsche Bank which is a German multinational investment bank based in Frankfurt, Germany. It has offices found all over the globe including in Europe, the Americas, and in Asia. In 2019, Deutsche Bank has earned US$26.3 billion. Its great work in the Asian market has won the company Top 1 in Best Investment Bank for Financial in the Asia Pacific from the business intelligence firm Coalition.

With around 150 years of history, Deutsche Bank has proven its strength in traditional fields of investment banking including financing, advisory services, fixed income, and currencies. Aside from doing well in Asia, Deutsche Bank is one of the top 4 investment banks in Europe. This indicates its capability to satisfy its clients from all parts of the world.

Best for Inclusive Investment Banking: Citigroup

Probably known for being the largest credit card issuer in the world, Citigroup is also one of the most reliable financial institutions in the field of investment banking. It is an American multinational investment bank based in New York City. In 2019, it had revenue of US$73.29 billion with as many as 204,000 employees as of June 2020. It provides strategic and financing products and advisory services to corporations, governments, and private businesses to more the 160 countries.

Citigroup is best known for being a haven for customers from all walks of life. It is friendly to even to young, women, racial minorities, and many more. It has been recognized as one of the Most Community-Minded Companies in America since 2012. With such an accomplishment, no wonder new clients continue to choose this company for their investment banking needs.

Best for Modern Investment Banking: Credit Suisse

Credit Suisse is a global investment bank founded and based in Switzerland. It is particularly popular for its strict bank-client confidentiality and banking secrecy. For clients who do value their privacy, choosing Credit Suisse is the best choice. It has proven excellent services in wealth management and capital markets especially in South East Asian countries as proven by the recent accolades it has received.

The company earned US$24.63 in 2019. Meanwhile, in 2020, Credit Suisse received the award of being the Investment Bank of the Year from The Banker besting all investment banks in the world in 19 different product areas. The Banker said that the decision was because “Credit Suisse ticks all the boxes of what a modern investment bank should be focused on.” This investment bank was able to make sustainable banking for its clients.

Best for Secured Investment banking: UBS Group AG

Like most Swiss global investment banking companies, UBS Group AG puts secrecy and confidentiality its priority. It had a revenue of US$30.21 billion. The company is best known to provide access to capital markets for corporate and institutional clients. Aside from providing investment banking and investment management services, it also provides global wealth management.

Best for Sustainable Finance: HSBC Holdings plc

HSBC Holdings plc is a British multinational company offering services on investment banking, wealth management, and many more. It is considered as the 6th largest bank in the world as of 2020. In 2020, it had a revenue of US$56.1 billion. Also in the same year, this investment banking company was awarded by the Euromoney Awards for Excellence for sustainable finance as well as the Banker Investment Banking Awards with Investment Bank of the Year for Sustainability.

Closing

It is true that looking for a trusted investment banking company can be daunting and exhausting. We have to make sure that we choose the best investment bank that provides services deserving of our hard-earned money.

To begin your search, you can start with these top ten investment banking corporations. They have provided outstanding services to thousands of customers in the past decades.

Be sure to research more about deciding which of these investment banking companies is right for you. Note that customers have different demands. Make sure that your bank of choice can accommodate your needs and wants.

If you are a person who has $500 000 in your savings accounts and earns little interest (or sometimes, none at all), well, you are not technically on the “bad side” of the earning spectrum. But did you know that you can do so much more with just earning little interest? If you are one of these privileged people who has these amounts of money, it may be a bit overwhelming, as you might feel pressured to manage the finances and make it roll around. This article will help you figure yourself out!

However, know that having these amounts of money is a good opportunity for you to diversify your personal finance portfolio. Given this, we would highly suggest that you split up your 500 k dollars into investment options –which we will be talking about in this article.

How to Invest $500k Wisely?

500,000 bucks is a huge amount of cash that should be placed into diversified investments. While this article gives you a wide array of options to invest that money properly, we also believe that you should be working this out with a personal finance advisor.

1) Guaranteed Investments

The first and safest option for diversification is to have a set of guaranteed income investments. If you would like to invest everything (let’s say the whole 500- k chunk of the pie), then getting sure income returns for your money can be very interesting to think about.

You’ll first need to have a high-interest savings account. Also, it is best to have an emergency fund as well. This means you’ll have to allocate a portion of this to savings accounts or a retirement account. The amount of your savings should have a monetary value of at least six months of your household’s expenses. This will eventually serve as your financial buffer for six months should unforeseen, and unfortunate circumstances arise.

2) Invest in Stocks

All you have to do for this is to get information from online resources and determine which companies you think can grow big in the future market. Once you have identified your company or companies, purchase their stocks in the market. Be sure to buy individual stocks for each. This will be a great way of investing your $500k.

Doing this can be done in partnership with a financial advisor or a stockbroker, but you can usually get better gains and equities with your stock using online platforms.

3) Robo-investing

Consider yourself getting involved in the stock market. If you are not certain which stocks to pick, then subscribing to Robo-investments can give you the jumpstart you will ever need to get started.

Usually, investing with Robo advisors will make you go through a process that identifies your risk tolerance, assess your funds, annual income, dividend income, and other contributors. Afterward, the Robo-investors will engage in the stocks by investing that best credit for you. They can allocate your budget for individual stocks. Many people usually would prefer this method. For the sake of stock, you might want to try this out, too.

Algorithms programmed in Robo-investors will give you the advantage to lessen your liabilities with taxes and will make sure that you will get the highest yields with the least fees possible.

Lastly, Robo-investments are convenient as you are investing without having to get your hands on it. All you have to do is to trust that your money is being managed properly by the platform.

4) Certificates of Deposit

Certificates of deposit (also known as CDs) are not reported to yield positive things like a justifiable interest rate—CDs workaround by putting your funds into a deposit for the short term and guaranteed return rates.

When the great recession hit the market and the Americans in the US, CDs’ returns dropped to one percent. However, interest rates have risen and gave better deals. This made CDs a more attractive investment for those looking at a guaranteed return of investment for their 500 000 bucks.

5) Exchange Traded Funds

Engaging with Exchange Traded Funds (or ETFs) is also a strategic method to diversify your stocks and investments in the market. One way to invest is that you will only get to make a single trade across a wide array of different stocks.

ETFs are very much similar to mutual funds wherein you purchase a relatively huge number of stocks that comprise one huge fund all at once. ETFs will mean that it is a single stock share that you buy from the stock market. In other words, you are purchasing portions of the fund from the exchange instead of going through a bigger fund group like what you do with mutual funds.

6) Peer-to-peer Lending

Peer lending is essentially lending and investing money on people (or business ideas) whom you think can give you a high return in the long run. Therefore, peer lending excludes you from the stock market, as you invest using your personal finance inventories and cash flow.

Peer lending usually gives you a higher return than other traditional investments, but the risk investments for this might be high. Everyone knows that some borrowers might give a delayed payment or might pay you nothing at all!

This is why it is important to question who or what business you will be putting your risk in. Remember to ideate your share price, and you may want to also balance it off by investing in people with a set, stabilized financial income, and a good financial portfolio. Otherwise, without that data or information, you might run into a problem that could put your financial items at risk as time will age.

Look into their business portfolio, the product they give advertiser disclosure on, and make sure that payouts and payment terms are all explicit. Link this information with a financial site if needed to make sure you give them the best credit possible, which will, in turn, give high-interest gain for your part of the pie.

7) Invest in Annuities

Previous and historical experiences would stigmatize annuities as a way of investing your $500k, or even for retirement. This is because a lot of salespeople have used the complexities of this product to their self-interests. However, there are scenarios where annuities can be that strategic option for a person who has 500 000 to invest. For those huge amounts of funds, that may be the right decision.

While a wide array of choices are available when it comes to annuities, it is important to take note that you will provide a lump sum of funds to insurance companies, which, in return, will give you a high guaranteed yield of that money. The moment you start to draw funds from that annuity is the moment you will get a fixed income as you move forward. Just be sure to consult with the right financial advisor for these ventures.

8) Invest in Gold

It could be a challenge for an investor to invest a half-million in physical gold, especially when one is already familiar with trading stock and bonds on platforms found online. So, when it comes to gold, you would be transacting with everyone outside traditional brokers, and sometimes you will need insurance and storage funds on the investment.

Suppose your main concern is about inflation, for instance, or other emergency index funds. In that case, putting some risk into the gold investment industry may be one of the ways to invest your half to a million dollars in fixed-income investments.

Always know that using this method would need some reflection on your risk tolerance and how you would want to jump off from that nest egg of yours. Either way, this approach will still be a good investment, especially if you do not want to get involved in the stock industry. But again, as we all know, you would still want to diversify your seeds as an investor.

9) Invest in Real Estate

If I were a person to get a hold of $500 000, I would place a portion of the pie to real estate. Data this 2020 show that the market shows a healthy demand in real estate investment trusts and the real estate industry as a whole. With the right information on risk tolerance, you will know that investing in such an industry can give you a high yield in the long term.

10) Invest in Government Federal Reserve Equities

The FRS’s main goal (also known as the Federal Reserve System) is that they would want to promote the aims of stable prices and maximum employment.

How to Manage Your Investments?

1) Keep it Lowkey

Everyone knows that if someone suddenly gets access to a huge amount of money, there is a tendency that new friends would be attracted to them in a way that they never had before. Sometimes even those whom you have already broken ties with could suddenly return to you to rekindle and amend some relationship. This is a very sad yet very realistic example of how money can bring humans down to their worst.

Given this premise, you can manage your investments easier when you keep them lowkey, especially if this is newly-found wealth. Otherwise, you will most likely fall into two scenarios:

Scenario A: You will either meet the requests of your acquaintances, friends of a family — until most your wealth is gone; or

Scenario B: You will keep tons of people on the margins (usually your lost ties and distant family) and alienate them because they think your wealth should be shared with them.

Don’t worry, you can avoid these stresses if you keep everything on the lowkey–at least until you have stabilized or have managed everything out.

2) Pay Off Existing Debts

Debt will always hinder you from your financial goals. Some debts even go to the very bad end of the spectrum, and you must get rid of them by paying them off immediately. Otherwise, your investment efforts will go to waste. Now, if you want higher returns:

• Pay your loans from your family and your friends. This is not just because we would want us to be responsible not just with their finances but also because of their manifestations on family and friend relationships. As you invest, now is your chance to pay them off–so you can also secure and protect your social relationships in and outside the home.
• Pay all your debts on your credit cards. This includes that home equity line of credit for your US home. These equity lines are huge credit cards that are secured by your home. No further discussion is needed.

• Pay all your debts on your student loans. These are also huge, unsecured debt, and you have to consider paying these immediately–even if they have low-interest rates.
• Pay all your existing car loans. Pay your pending US car loans if your pending loans are not three years of age yet. (or if you aren’t within 2 remaining years of paying the loan off). This will give you a great leeway of margins for your emergency fund in the long run–should you need it.
• Pay your mortgage. Signing up for a mortgage as an investment makes sense since this is a very long term asset and may take you huge amounts of amortizations per year. It is more strategic to pay off your mortgage immediately. However, if it is an “interest only,” “sub-prime,” “balloon,” or an “ARM” type of mortgage, pay them off, then don’t patronize it. When it comes to mortgages, make sure to be certain and fully-informed.

3) Give Back to Charities

Do not let money own you; prove to yourself that you have full control of your money, not the other route around. One way you can prove this to yourself is to give back to some extent, and at the earliest possible time.

You do not need to be religious to give back to charities. All you have to do is be kind and generous, especially when you have more than enough. Greed will make us want so much money that it could turn us into selfish people who only want to receive and receive.

But if you would want to practice managing your investments, try doing it the other turn around–give.

4) Plan Your Monthly Expenses Ahead

Prepare for your large windfall. Try to predict the worst possible scenarios life might hit you with, then plan to secure resilient money savings ahead. Planning will give you time to handle your newly-acquired fortune more properly. It will give you ample time to make better decisions about it–such as your retirement, how content you would want to become, your life status on health, the right company you want to be with, or how you would want to live your life.

To assess and plan your financial expenses, ask yourself, do you want to have your retirement solution right now? Given that, do you have other income sources that can help make your retirement possible, or will your USD500 000 be sufficient enough for you? Is this something we would want to have high returns for?

You can also ponder if you would want to stay in your company or if you would want to shift to other careers? Are you satisfied with the current money you are getting for your pay? Subsequently, would you want to have some fixed income or something more fluid?

Extend those questions into where you would want to live in the US, what kind of home would you want to have, would you want to start your own company and risk your money there? What index funds would you want to invest in, and what rates of return would you like to have? What dreams do you want to be made fulfilled but couldn’t because of limited money and just a fixed income?

5) Emphasize Safety of Principal Investment

Just like what has been mentioned earlier, going through a windfall might be a game-changer when it comes to aspects of trying to live a life for yourself. What else contributes to that game-changing experience is how you invest that money when such windfalls arrive. Therefore, the key is to make sure that you have full control over your strategy.

The moment you have secured the safety of your principal money, the better emphasized your fixed-income assets will be. Some of the things you might want to consider are:

• To secure an ample amount of emergency funds. And to secure an ample amount, we are talking about around 24 months worth of financial content and living expenses, so when your windfalls will come, you will be financially resilient–sometimes even up to retirement.
• To engage in peer lending. Emphasizing your principal investment can diversify your portfolio in various ways. Be an investor in peer lending so that you could secure your money (but with relatively high risks. Create the best personal loans and schemes for your friends. Just make sure to question and be intuitive, and the only risk is the right company.

6) Keep the Investment Risk to a Minimum

To manage your stock and financial resources properly, it is important to know that if you put these at high risk investing in the market, a ton of the hard work you have gone through might be jeopardized. This is why you would want to become not just fully aware of the things you are investing in but also on and act on it–by adding measured and well-calculated risk strategies.

A typical financial advisor would say that with 500 000 USD, you are considered a huge investor, and you should think and act like one, especially on income, index funds, and returns from the market. You should be able to diversify your portfolio and to make your money rolling–amidst inflation. That is what the stock market is for, at least in the life long run-up to retirement. Do not, however, overdo it, and learn to be content.

Ensure that you still have your stock allocation on close monitoring and do not exceed 50% of your total capital. This will provide you the growth and diversity you need, minus the high risks.

To further create calculated and measured risks, consider subscribing to ETFs or even mutual funds. Robo advisors are also available online, just if you need help on reviews on your a part of your credit cards or your investment vehicles in the market. They can also calculate returns and items on the stock–given available financial data.

7) Invest in Yourself

Self-care does not just apply to your mental and physical well-being, but it also manifests in your relationship with your finances. This is the time to spend on a few things you have wanted to have for the longest time.

Do not go all-grand and get carried away in this part of the process, though. Just spend on a little, and to those that are urgently necessary (just like your 401 k). In light of higher returns, focus on investing, and be content.

Conclusion

We hope you have had an informative read as we have talked about steps to make sure your large items for investment are manageable and accounted for. Always remember, with the right passion, data, and attitude for things, getting to the financial goal you’ve always dreamt about will always be one step closer to reality. Read more about Investoralist personal finance articles and be knowledgeable on the current economic situation about finances!