Ways on How to Invest Beyond the Stock Market: Beginners Guide to Alternative
Investments for Income
Money Making Ideas)
When you decide to invest out of the stock
market, there’s a general belief that once the risk of the investment
is less, then the lower the return will be. Although the profits may
be small but the easy predictability and stability of these methods
will definitely have lots of value in the portfolios of investors.
When most people are
asked the way to invest,
they normally say it is all about the rate of return. Some of the most
common ways to invest are stocks and mutual
funds. But given latest market turmoil, some think avoiding that
turbulence altogether can be a very vital strategy in itself.
in government bonds
A financial security
that is normally used just to regulate the volume of circulating cash
in the economy by the government is called a government bond.
Do you know that investing in various types of government bonds is a lot more secure
than doing it in the stock
market, because you will be very certain that you will be able to
redeem it. Just in case the government is faced with any cash crunch,
it can easily print lots of new cash to clear off the debts. But, the
truth is one can never be certain of regaining the capital invested,
because just like some other investment risk, bond prices can simply
fluctuate as well.
The main issuers of
bonds are by the Italy's BTPs, France (OATS), governments of Japan (JGBs),
America's U.S. Treasuries, the Bonds of Germany and the Gilts of
England. The oldest issuer of bonds is the latter; it started in 1693
with the aim to collect money for their war against France.
popular types of government bonds include:
are the most secured in all the types of government bonds when talking
about public investment in the country. But you normally pay a good
price for this security by making interest that is very low on it.
But, the interest money is normally tax free. Included in this bonds
are treasury bills
(Maturity of 10 years usually starting from $1000 to $1,000,000.
Treasury bonds are no longer issued in America, but investing on it
can still be done by buying it from the secondary market. Treasury
notes have a growth of 2 to 10 years normally valued at $1000. To
this note there are two kinds of bids: competitive and non-competitive
bids. Treasury Inflation Protected Security (TIPS) are bonds that are
sold for $1000, with a maturity of 5, 10, or even 20-years. It is
normally adjusted half yearly to take out the effect of inflation on
it, after that a fixed rate of capital interest will be calculated on
it. Treasury bills are just like cash management tools with growth
period of 4 to 26 weeks.
Federal National Mortgage Association (Fannie Mae), the Government
National Mortgage Association (Ginnie Mae), the Federal Home Mortgage
Corporation (Freddie Mae), and the Student Loan Marketing Association
(Sallie Mae) are all institution of finance which is actually owned by
the United States Government. They are the ones that can only issue
what is known as Agency Bonds. So, they work as agencies of the
and Corporate Bonds
truth is every Municipality needs money to continue working in their
area. So, Countries, districts, states and townships normally gives
such bonds that they will use in bringing in money that will be use
for looking after the infrastructural needs of the surrounding areas.
bonds are big amounts, which is mostly giving out to finance some
major infrastructural developments like roads, bridges, and buildings.
They are of two types which is convertible and callable: convertible
can easily be converted into common stock while callable can be
redeemed before maturity.
is a government bond that can be giving out by so many entities. It
does not have any common interest payment against it. It is also
bought on a big discount but easily redeemed at face value.
Have you been
considering owning your own
business? So many people have fantasized about this, but just few
are actually bold enough to simply take the steps towards becoming
self-employed. This is actually not for everyone, and some that
succeed here share some qualities which I will list below.
To start with, all entrepreneurs which are successful share same qualities which always
make it very possible for them to easily make it in the harsh
realities of day to day business
owning. Now I know you will like to know the way to measure up, just
ask yourself if you are:
- Have you been able to define your business and personal goals?
- Did you see the opportunities which have showed up in your target
market? Have you arranged a strategy or a product which can easily
make the most of this?
- Are you very enthusiastic and decisive about succeeding?
Are you a good example of a great leader? Can you easily bring out the
best from your colleagues at work? Can you discipline them when
- Are you able to make things happen, or prefer to just sit back and
wait for them to come to you?
- Are you ready to work on the business always 24/7?
- Can you easily see how you are performing from a good point of view?
Do you like receiving constructive criticisms from others?
- Do you think you can easily change your products or methods very
fast if necessary to attract a target market?
The truth is you are
not required to have all characteristic listed above, having most of
them can simply ensure that you are now ready for the sweat and hard
work which is involved in making your
own business a success.
You are also needed
to know that until you have a stable business, you may have to live
without a regular income for years. Much ebb and flow to the business
is very much expected, and as a result there will be times when you
have negative flow of cash,
but other times when money will be much. You have to be ready for
yourself and family to always do without some good stuff while times
are tough. It is also very necessary for your family to be solidly
behind you during this period because their lives will also be
affected, so you will definitely need their backing. The truth is your
income is very unstable and your time will also be short as well. Most
especially at the very start, you may even find that you are always
away from your family for so long, unsociable hours. It will be very
good if you can easily ask your family to assist you! Not only will
you be able to gain from their individual skills, but they will also
be more understanding of the reason time and money has been very hard
Now if you are
prepared to accept this kind of responsibility, you can easily go for
it! Just take some time to create
a very good business strategy because you will actually need it if
you are thinking of securing funding for your
business idea. You will have to research your potential customers,
your marketplace and also your competitors, using some published
material such as marketing surveys or by speaking to your potential
customers directly. Find out the size of your target market if it is
expanding or contracting. Research who your customers will be, where
they can easily be found, what they actually want and how much exactly
they want to pay. Also study your competitors very well. Know the
exact products they offer, the prices which they normally charge and
their market share. When you have this understanding, you can easily
make a very informed decision on whether your business will be viable.
in Treasury Securities
One of the best and
safest ways to invest your money and get a good and stable return is
treasury securities. There are a lot of trade-offs to be expected with
such a safe return, but the gains can offset them.
Now let's take a very
good look at some types of treasury securities that is available and
what you can get from them in terms of safety and return.
The primary treasury
security which is available is the Treasury
bill or T-bill, for
short. The US Department of the Treasury issues them and they are sold
at a discount from face value. These are short
term investments that normally mature in less than a year, and
they are not required to pay interest until the maturity date.
Treasury note is
another type of treasury obligation. It is different from the Treasury
bill because it matures in two to ten years, and then issue some
interest payments also known as coupon payments each six months. They
are always issued with maturity dates such as two; five, or ten years
and they also have par values of $1,000 to $10,000.
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A third type of
Treasury security is called Treasury bond, and has the highest
maturity of all the Treasury securities. The period of maturity for
these is normally 30 years, and just like the Treasury notes, have
coupon payments each six months. But these are no longer available
from the Treasury department directly, because issuance of this type
of bond was actually stopped in 2001. Although they are still traded
very largely on the secondary market and will continue to be until the
last one get matured in 2031.
A final type of
Treasury security is called the Treasury Inflation Protected Security
or for short TIPS. This security is very different from every other
security because the principal or par value of the security is always
adjusted for inflation over the time of maturity. The amount of
adjustment is usually coupled with the Consumer Price Index so as a
result, the coupon payments on a TIPS will be different by the amount
the principal has been adjusted. This normally has the end result of
securing the investor against the degrading effects of inflation on
the principal value of the investment.
are largely seen to be a very good and secure investment because they
are backed by the US government, which is the biggest economic power
in the world. Because of the relative safety of these investments,
however, the yield on these securities is low in comparison to other
municipal bonds or corporate bonds. Capital preservation rather than
growth should be the primary aim for anybody who is interested in
investing in these securities.
in Gemstone-grade diamonds
Investments are very
important, so when you are thinking about investing, you will be
amazed to know that there is a lot more to investments
than just real estate, stocks, mutual funds and
some other common investments like these. Investing
in gemstones is a very good way to make
a great return of investment if you are very careful about what
you do and also know what exactly you are getting involved with. You
have to know that there is a lot to learn from this type of
investment, including the basics of investing in gemstones listed
To start with, you
have to be warned about a dirty phrase that is not actually illegal.
"Some investment grade" diamonds and gemstones are mostly
advertised by salespeople who are very fraudulent or trying to scam
some people out of money. So don’t be fooled when you see this term.
The FTC doesn't actually like this term because it isn't very useful
and doesn't really hold the significance that most people thinks that
it holds. Just because somebody calls a gem "investment
grade" doesn't actually make it better than another stone which
does not have that label. The fact remains that, dealers which are
reputable won't even try to use terms like this to mislead people.
If you want to make
quick gain, just look at investing in some low-priced colored
gemstones. These stones will give you the very best profits and also
the most security in all of your investment. Before investing in
gemstones, you need to take the time to take a look at your options
because the market is very unpredictable. You can easily invest in
diamonds which are very expensive, but it will be a very great risk
and also facing a much smaller profit in most cases. Always take the
time to make a list of pros and cons and also learn some little things
about the market before you start using big money or getting your
You have to be aware
that being absolutely ready is the best tool if you want to be
successful in investing. So if you choose fine diamonds or colored
gemstones, you will need to know exactly what you are getting involved
in. There are so many types of investments out there for lots of
people to easily choose from, but gemstones is a very good way to find
a hobby which is enjoyable while also making a good investment. You
can easily look at things such as markup, retail value, wholesale
price, and other elements that are involved in the purchase so that
you can easily make the best deals on your purchases when you start
investing in gemstones.
This isn't actually
saying that everybody should go out and purchase wine but for all
those that are ready to dedicate effort and time into choosing good
and careful investments, the returns can be very substantial.
Fine wines markets
has been there for some centuries but the introduction of online
trading platforms has undoubtedly assist to ensure the sustained
development of the fine wine market.
After deciding to
invest, you will have to start with specialist wine investment
company. The wines which you can invest in are Old World Wines which
are actually wines grown in Europe traditional areas such as Bordeaux
which has long histories and good traditions in wine making. The other
wines to be invested in are New World wines which are wines grown in
some areas outside of Europe such as wine mainly from The United
States & Australia.
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You have to know that
there is a big difference in these two ways but both are very
important when it actually comes to building a big wine portfolio.
When you decide to
buy wine from a company or broker, always ask about how they intend to
give you a return from the wine. This could easily be a holding plan
or they could also just look at flipping the wine in quantity, but
either way, it is very necessary to find out how they intend to offer
you the return on your
The key to a solid
investment is good research; so this is another reason to make use of
the services of an investment company, who will use their experience
to guide you through the whole process. Wine Investment companies are
always researching the market very well; this understanding assists
them to easily know where the best investments are.
Angel investing is
perfect if you really want to get started with new
businesses but it can also be a very risky investment, so you have
to always ensure that the business which you have decided to fund
looks as though it has a very good opportunity of actually turning a
profit. If you also do not know the business then you should easily
pass by. Angel investing also needs that you have big
amounts of money to begin with, because you're actually going to
be giving out lots of big loans to some start-up companies.
If you want to easily start-up your own business, then you'll have to search for an
angel investor. The main
reason for this is that a lot of people do not have the money required
on hand to start up their very first business. Therefore, all you have
to do is search for somebody who has good
capital to spend on your business - venture capitalists. While
there are also some very few new businesses who sometimes manage to
get money from some professional venture capital firms, this is not
always possible. Because of this, you are required to search for angel
investors - these are very rich people who want to make high-risk
Most times people
think that it is difficult to search for somebody who is actually
interested in angel investing, but it is not all that very hard. The
truth is so many new starts up businesses are always funded through angel
investing than through venture
capital investments. You can easily get venture capital funding after you have been able to find someone who
is actually interested in angel
investments - because of the growth of your business.
One of the things
which make this very hard is that it is very difficult to know the
amount of money angel investors are going to invest in. But, you'll
need to do a lot of work in order to make
your business look very desirable. It might be difficult to make
it very desirable to angel investors who are actually searching for
specific features, but the best thing you will have to do is to make
your business easily look as if it will be easily profitable.
Immediately you have a very profitable business strategy, you will be
able to get angel investing - but ensure that your business also has a
chance to be high-growth!
Real estate is a good
and well know investment. There are a lot of modifications in the
monetary system having puffed-up dangerous or lesser returns, the
investment marketplace normally go on with the strategy imaginative
and good-looking approaches of investment. These usually make it
necessary for real estate
licenses to get an elementary and also an up-to-date understanding of real
estate investment. Now, this does not actually mean that licenses
should start acting as investment counselors but all the time they
should simply refer investors to some knowledgeable tax accountants,
attorneys, or some investment professionals. These are the people who
normally give expert and good advice on specific needs.
can think about all the three factors before you start investment in
There are three
factors in investing in real
estate which are area, perception and economics. The major key to
easily making a very good investment in real estate, and in
cooperatives, and townhouses, is to think about all the three factors.
When you are investing in real estate, it corresponds to a particular
commitment on the very part of the purchaser. Real
estate investment made only upon the very location of the property
will not get those results. So it is always important to follow the
three considerations before making an investment.
on the whole area.
awareness of the area.
the financial factors.
A process in which
people (i.e. the ‘crowd’) invest in a new-stage unlisted business
(which means a company that is not listed on a stock market) in
exchange for quality shares in that company is called equity
crowdfunding. A shareholder has some little ownership of a business
and usually stands to gain should the business do very well. The
opposite is actually true, so if the business fails, investors
normally lose some or all, of their investment.
In time pass only
rich, business angels and venture capitalists, normally invest in
startups. Equity crowd funding have assist in democratizing the
investment process by bringing the door open to a bigger pool of
potential investors also known as “the crowd”.
The basic resources
that are made used off by everybody are commodities. They normally
include some food products which consist of corn and sugar, some basic
products like steel and aluminum, some energy-related resources like
natural gas and crude oil, and some precious
metals like silver and gold.
Instead of purchasing some physical quantities of these commodities,
you can purchase contracts to buy or sell them on the stock market.
If you are looking to
diversify your portfolios as an investor and insure your wealth
against the damages of volatility in traditional markets, then you
must have seen a range forestry
investments, which promises to create superior inflation-adjusted
and some risk-adjusted returns for the long-term investor.
But the truth is how
has the forestry investments performed over the years? And how does
the investor who doesn’t have much money take part in this very
interesting alternative investment asset class?
choose forestry investments
because of their importance as an inflation hedge, and their ability
to create non-correlated return on investment in the long-term.
performance is also driven by the high demand for timber, weighed
against worldwide supplies, and in the long-term people are using
timber at a very quick pace than we can easily grow it, this therefore
makes timber investments a very attractive asset class for all
investors which are seeking secure and long-term capital appreciation
within the portfolio of their investment.
Now any investors
which are looking into the right type of forestry
investment that may be right for them should simply consult an
adviser that has much expertise and experience within the sector.
A very good way to
beat the recession is diamond investment. All traditional investment
options are laden with dangers of a high order because the economy is
fluctuating like a badly moving pendulum. So under these
circumstances, the best and proper way to make your money count in the long run is investing
Diamonds are profitable investment because of their per unit mass high value. It
is a simple commodity to
stock and easily transport internationally. If you actually want to
make a diamond investment,
it will be very good to get yourself educated about different aspects
of diamond. Websites, online
blogs, and forums are all very good places to understand how to value diamonds
on the basis of their weight and quality.
Now according to some
industry experts, the trend is actually shifting towards trading of
some antique diamond jewelry. There has been an increase in the demand
for antique diamond jewelry
all over the world with some investors eyeing antique diamond pieces
as a very profitable investment opportunity.
and other rare items Investing
Let’s say you are
already tired of riding the stock
market rollercoaster. So how do you fancy placing your money into
a crate of very good fine wine or just buying a restored Jaguar E-Type
instead? Not only will you easily get to enjoy the item but you may
also have lots of bumper returns.
You are welcome to
the good world of collectible
investments. A lot of financial expert usually advise that it is
very easy to lose a fortune if you put your money into alternatives,
that sometimes includes everything from stamps
to antiques, but a lot of people still add them as part of their
It is actually a big
sector which is diverse. Some people also focus on some specialist
little items such as collecting
rare comics or cigarette cards, while some other people
prefer to put their faith in larger ticket items they hope will
actually make lots of money
One of the most easy
and profitable of all the investments is actually investing
in rare stamps and there are a lot of potential investors in this
kind of investment. This has made it very possible for some stamp collectors who are well-trained to simply get big profits
rather than the trainees or the beginners. Collecting
postage stamps & regular government stamps normally gives the
needed profit. Investing assets or money comes from the Latin word
vestis which means garment and also the deed of things to place into
pockets of a lot of other people. Investing or investment is a term
with different closely related meanings in economics and finance, also
in line with saving money. The deed is normally expected when an asset
is normally bought, or the same money is placed in a bank. This
investment is usually made in hopes of getting some interest or from
it in the future. Now in the instance of rare stamps they are very
small and portable, also attractive to art form and come under
provide lots of profit to some nation's wealth. For instance after
Princess Diana death, her stamps was now sold at 10 times the real
value which was offered on eBay issued by different British
Commonwealth nations. After the 2nd World War the Japanese and Germans
took away the war stamps after the growth in their economy to bigger
You have to know that
the demand for rare stamps will definitely rise whenever the quality
of stamps decreases.
Investing in rare
coin can be a sweet and very good way to invest. Instead of just
trading paper as people normally do in the stock market, you will have
a very good asset that you can easily collect and also enjoy the
beauty of it.
Now exactly what type
of rare coins can one
easily invest in? Well, so many, actually people think that you need
to have the biggest grade coin of a small mintage year to actually be
worth investing in. This is not true; a lot of the coins that were
actually tracked by Salomon Brothers were coins that were not very
rare and more easily gotten by the average investor. There is actually
no doubt that rare coins of high-grade normally bring in the biggest
dollar amounts, but the investors needed are also very limited. So
some coins which were graded by some very reputable companies such as
NGC and PCGS which are moderately priced are definitely the best
choice for so many investors and collectors.
Not what you decide
to invest in is actually up to you. You will have to do some research
as you would if you were really investing in stock in a company. You
can easily take a very good look at what you actually like and then
track the performance over the past 5 - 15 years’ periods. Now see
if actually the rise in value has been strong or falters. You can take
a look on eBay - are so many of those coins easily available? When one
becomes very available, is there usually a strong bidding trend.
Considering these kinds of things can easily clue you into whether or
not an actual coin might be a good investment.
So many investors are
now turning to farmland investments to give both sustainable growth
and stable income in a very strong financial climate.
The population of the
world is rapidly growing, and that growth is also putting on the rise
the global demand for "food, feed, and fuel". This high
demand is also complimented by climate change, expansion of the human
race, low in supply and a lot of other pressures on the existing
production, this has made keeping up with this increasing demand very
Man has actually
eating more grain than was produced for the 7 out of the last 8 years.
The United Nations official numbers shows that per capita grain
production has been on the low since the mid 80's and also the per
head availability of farmland since well before that.
provide investors with some danger-managed exposure to the rise in agricultural commodity prices, it also offer an income stream which
is very attractive and a level of capital growth that is not found
when associated with such a low level of risk.
The best and most
important plan for investing in
paintings is to buy an artist's work that is still very early in
his career before he becomes popular. I know that this is very easy
when saying it because unless you have some inside details about the
painter's career then it is actually a game of luck.
To put on the
increase your chances of success on this, then it is very important to
purchase some good pieces of paintings when the economy is poor and
the prices are very down. So when you see any painting which you like,
just do some important research on the background of the artist for
instance the paintings he has made in the past, the length of time he
has spent in the art world and any other press about him.
Now you have to be
aware that it takes lot of years for an artist to easily make a good
mark in the painting sector. And this really means easily getting
noticed by their peers, appearing in so many major exhibitions and
being covered by the press. If you have lots
of money for investment, you can easily buy the paintings after
they must have become very popular and sell them after some years
later. Paintings normally go high in value with age unless maybe the
economy is down.
In life there are so
many risks one must go through like crossing the busy road is very
dangerous. Although, most of the time we can easily take control of
this risk by looking both ways when we decide to cross the road. Now
same also applies for investing. Investing
has some risks but once again, one can easily control the risk and
dangers involve. Your financial
freedom is tied closely to the number of risk you have been able
to take on, as this will actually bring the right and perfect rewards
which you will get from your investments.
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