Can learning to invest make for an easy second income? For those just starting out on their investing journey, I can’t emphasize enough the importance of increasing our financial education and learning about what investment options are available to the average investor. What follows is a sponsored guest post from financial writer Justin Duke.
Learning to Invest
Learning to invest can help you make money even while you sleep. It can bring you passive additional income that has nothing to do with your regular 9-to-5 job. Gone are the days when people would consider getting a part-time job to meet those extra bills. Today’s savvy thinker is constantly looking for different ways to make money that generate income without much effort. Want to know more? Check out these investment options:
1. Algorithmic Investing
If you don’t have much time to sit and monitor your investments, don’t worry as robot investing can do the work for you, keeping your portfolio balanced. You don’t have to deal with brokers and other third parties if you don’t want to. Using algorithmic investing, you can dabble in stocks, investments, index funds, mutual funds, and a plethora of other investment options.
Algorithmic trading uses a set of algorithms programmed to automatically place trade orders. These algorithms are configured based on various mathematical models. There’s no human involvement in the process, which keeps the trading systematic and more liquid. You can buy pre-configured algorithms for your preferred form of trading, and monitor them a few times a day. You’ll find that your trades are executed at the best possible rates, instantly and accurately, bringing you excellent results.
2. Real Estate
If you have the funds to invest in a property, consider how you can leverage the most from it. You can sell, rent, or lease your property to make money in the real estate market. Partner with professional property managers who’ll manage your properties on your behalf. Buy smart, sell smart, and rent smart. Learn to analyze real estate opportunities in different areas.
A Real Estate Investment Trust (REIT) is a sort of mutual fund comprising real estate projects. REIT funds are managed by professionals. This means you can make money without getting involved. One fantastic thing about REITs is that they pay higher dividends than you can get from stocks, bonds, or other investments. Plus, you can buy and sell your REIT shares on the open market at any time, which provides liquidity compared to owning tangible real estate investments.
3. Other Investments
Stocks: Investing in stocks that pay hearty dividends is a good way to make money regularly. To know which companies pay great dividends each year, take a look at the S&P 500 Dividend Aristocrats list.
P2P: Peer-to-peer lending requires proper screening to succeed. Make use of P2P screening tools and watch your portfolio settings to monitor investment gain. You don’t have to invest too much – even $50 per loan will do.
Deposit Certificates: Investing in fixed deposit certificates is absolutely low-risk. No matter which bank or credit union you use, you can pick up one of these. You deposit your money for a length of time and earn a sum of money in interest along with your capital.
Treasury Bonds: Treasury Inflation Protected Securities (TIPS) is an investment bond that carries the lowest risk. TIPS offers a fixed rate despite rising inflation rates. Your investment value, whatever the purchase value, will grow with growing inflation rates and bring you higher returns over time.
Money Market Funds: If you are looking for something safe where you don’t lose any of your original investment, go for money market funds. Your funds won’t be affected by market fluctuations and you’ll also earn some interest.
Annuities: Annuity contracts can be full of if’s and but’s; best to find yourself a good financial advisor first. With an annuity, you’re basically investing money and taking a fixed or variable rate of interest in terms of return. There’s also the equity-indexed annuity that is dictated by stock market ups and downs.
Learning to invest can definitely help you earn a good passive income that can help make your dreams come true. Not all of us can manage to achieve everything we dream of, with our job salaries. Sometimes, it’s necessary to get creative and branch out a little. However, the object is to ‘learn to invest’ and not just go nuts putting money into every this, that, or the other. Learning to invest means doing your research with regard to investment options and being savvy with your cash and your time.
For more information about investing options that generate income check out My Favorite Income Generating Assets.
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