What Should You Invest In?

You should invest in a stable commodity, such as gold. However, the prices of precious metals do fluctuate, so a price drop is possible. If there's a world scare or a scarcity of the commodity, the prices usually rise. One thing to keep in mind: Investing in commodities is always a gamble.

Housing and real estate, such as businesses, apartments, farms, and trailers, can be good investments. The best case scenario is to acquire a property at half of its worth. Then, you can either sell it right away or fix it up in hopes of making more profit.

Most consider bonds to be a low-risk introduction to investing. If you haven't invested before or you want to research other forms of investment, you can put your money in a bond while you learn. Though you are unlikely to lose money, you might only gain about 3% return on your capital even after a few years.

Mutual funds pool funds from multiple investors into many different stocks, bonds, or other assets. Money managers use their expertise to get good returns, but they don't do it for free, so part of your profit goes to their salaries.

Stocks buy you an ownership share in a corporation. Common stock allows shareholders to vote on company issues and sometimes issues dividends. Preferred stock pays regular dividends in predetermined amounts, but shareholders don't have the right to vote on company issues. Both types of shares are affected by the economy and the performance of the company, so make smart choices when choosing a company to invest in.

You might acquire a rare commodity in hopes of selling at a profit. For instance, wine becomes more valuable with age so you may hold on to it for twenty years. When you try to sell, you might have difficulty finding someone who appreciates the worth of your item. So, only experts or extremely patient people should invest in alternative investments.