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5 Alternative Investment Options to Make More Money: Beyond Stocks and Bonds

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Are you looking for ways to make more money? If so, you’re definitely not alone. In today’s economy, it can be tough to save and invest enough money to achieve your long-term financial goals.

Usually, however, most people go for bonds and stocks when they can invest in various assets. Here are alternative investment options for you:

1. Forex Trading

Forex, or foreign exchange, trading involves the buying and selling of currencies. It’s essentially a way to make money by betting on the direction of currency prices.

How does it work? When you trade forex, you’re essentially buying one currency and selling another. For example, if you think the euro is going to rise in value against the dollar, you’d buy euros and sell dollars. If the euro did rise in value, you’d make a profit.

Why invest: Forex trading can be a great way to make money, especially if you have some experience with it. It’s also a very liquid market, which means you can get in and out of trades quickly and easily. Also, forex trades can have very low fees. The markets are also open 24 hours a day unlike those of stocks.

Be aware: The forex market is volatile. Prices can change rapidly from day to day. You’ll need to have a fair amount of money saved up before you start trading as you’ll likely be using margin (i.e., borrowed money) to increase your potential profits.

2. Exchange-Traded Funds (ETFs)

An exchange-traded fund (ETF) is an investment fund that trades on a stock exchange. It contains a collection of investments such as bonds and stocks, but it is traded like a single stock or bond.

How does it work? The price of an ETF will vary during the trading day just like any other stock in your portfolio. If you buy shares at $100 per share and sell them later for $101 per share, then you’ve made money from your trade, assuming all other things being equal, including fees and taxes owed.

Why invest: ETFs are similar to mutual funds in that they hold multiple assets. You can also buy and sell them at any time during trading hours just like stocks. This makes them a very liquid investment.

Be aware: ETFs can be more volatile than mutual funds, so you should be prepared for some fluctuations in price. However, this also means that they can offer the potential for higher returns. Another risk is that not all ETFs track their underlying index perfectly.

3. Money Market Funds

A money market fund is a mutual fund focused on short-term debt securities. These include certificates of deposit (CDs), commercial paper, and treasury bills (T-bills).

How does it work? Money market funds are designed to provide stability and liquidity. This means that the price you pay for shares will always be very close to the underlying value of the securities held by the fund.

Why invest: Money market funds offer a very stable investment with little risk of losing your principal investment. In addition, they offer relatively high yields when compared to other types of investments like CDs or savings accounts.

Be aware: Yields on money market funds can vary, so shop around. And since they’re designed to be very stable, you won’t see the same level of returns as you might with other types of investments.

4. Real Estate Investment Trusts (REITs)

A real estate investment trust (REIT) is an investment where a real estate company owns and operates income-producing real estate, like apartments, hospitals, or office buildings. REITs are usually publicly traded, which means investors can buy shares in the company just like stocks on an exchange.

How does it work? A REIT is similar to other types of stocks in that you can buy and sell shares at any time during trading hours if there’s enough liquidity available from other market participants who want to trade with you.

Why invest: Investing in a REIT allows you to diversify your portfolio while still being able to benefit from rising property values. In addition, REITs typically offer high yields when compared to other types of stocks.

Be aware: Like any investment, there is some risk associated with investing in a REIT. The value of the shares can go down and up, and you could lose some or all of your original investment.

5. Retirement Plans

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Retirement plans are an investment designed to help you save for your future.

How does it work? There are many different types of retirement plans, including IRAs and 401(k)s. These can be opened at a bank or other financial institution and managed by them or one of their representatives on your behalf.

Why invest: Retirement plans allow you to accumulate savings that will grow over time without having any impact from taxes today (or until withdrawal). In addition, they offer tax benefits such as deductions when contributing funds into the plan each year and tax deferral while money remains invested within this account type.

Be aware: Retirement plans do have some risks associated with them. For example, the stock market can go up or down and you may lose money if you decide to withdraw your funds before retirement. Withdrawal early can also cost you money and even penalties.

Making more money with your investments is possible by branching out into different asset classes and investment vehicles. Take some time to research each option and determine which one(s) might be right for you. Remember, diversification is key when it comes to investing.

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