For people looking to boost their financial future and make more money, one of the first ways that come to mind is an investment. It is a popular preparation option for retirement, and even after, two-thirds of retirees plan to continue investing, based on a 2018 global study by Schroders. Yet many people continue to avoid or delay investing out of fear and confusion with the entire concept. With so many options and schemes available, it can be easy to hit the point of information overload and end up with more questions than before. However, getting started in investing does not have to be complicated in the beginning. In fact, there are many opportunities out there that are perfect for investment novices, and more importantly simple to understand and get started in.
Opt For Gold And Precious Metals
Gold continues to be one of the most profitable investment options, thanks to its ability to maintain high prices and value on the market. In the past 15 years, the price of gold has increased 315 percent, and predictions for 2019 only indicate a continuing rise for gold and commodities, according to Forbes. For any investor, this is great news and the perfect time to get involved, but more specifically, for novice investors, gold and precious metals increases as paper investments such as stocks depreciate. This makes it a great addition to your investment portfolio to hedge your risks, and as a starting point, it is easily accessible thanks to online dealers such as Money Metals Exchange offering gold and precious metal coins and bars along with pricing charts and pricing alerts to help the buyer.
One of the most cited worries for beginner investors is the risk that comes with the process. Of course, there is always a risk of your return not being as anticipated, but if you are after a safer bet to start off with, try investing in treasury bills. These are issued by the government, and while their yield may be on the lower end compared to other options, the security they offer more than makes up for it. Most treasury bills are offered on a long term basis, which makes them the perfect starting point for retirement planning, but they are also available for shorter variations, such as less than one year. In 2018, the Federation of Bosnia sold €10.2 million in 9-month treasury bills, and in 2019, Republic of Srpska raised €16.3 million in ten-year Treasury notes, highlighting the availability and varying options for investors when it comes to treasury bills.
Index & Mutual Funds
The stock market is a fast-paced and unpredictable environment for any investor and can be daunting at first. Index funds can net you much lower tax rates, and mutual funds only require you to choose a risk tolerance and category to invest in before handing over your capital to an experienced fund manager. As a bonus, the addition of technology such as Robo advisors have not only made the process much simpler for everyone but has also cut the cost attached to it and made it readily available at your convenience.
Real Estate Portfolios
Real estate can be an investment option that provides a stable passive return, and with the real estate market booming in Bosnia, there is no better time to consider it. When the term ‘invest in real estate’ comes to mind, automatically one jumps to a large amount of required capital and a project requiring long hours of commitment. These two conditions do not spur confidence in someone who is new to the investment arena. However, there is more than one way to get involved in real estate, and with a range of budget as well. Real Estate Investment Trusts can take a lot of the guesswork out the process for you including searching for the perfect property.
By using a company that owns or controls its own group of income-producing properties, you can simply choose your return preference and leave the maintenance to the professionals. There are also more recent introductions to the investment market such as real estate crowdfunding platforms, including Fundraise and Appear Here. Operating on a similar premise to P2P platforms, investors pool their resources to fund properties or provide commercial spaces to businesses. Best of all, investment buy-in is much lower and can start with just a small deposit.
Getting started with investment can be daunting at first, but with solid research and good choices, anyone can be successful. The best decision for inexperienced investors is, to begin with, some of the simpler, safer investment choices and build their knowledge and experience from there. In the end, any investment comes with a risk, but with careful navigation, it can be mitigated.