Photo from Pexels

With a range of diverse investment options available in the investment industry at the moment, there’s a lot of noise out there telling beginner-level investors to follow their advice and invest in the next best product. If you’re baffled by the options you have available and unsure where to begin your investment journey, this guide will help you understand your options better. The goal behind investment should always be balancing your profits with your comfort. Unless you’re an investment trader, for most people, investment is a side hustle that they don’t afford to spend hours and hours on every day. This guide will help you understand how you can cut back on time spent on investment wisely and still earn major profit.

Invest In Retirement Plans

If you have a defined career path, a good job, and a solid plan of growth in your field, you will likely want to remain employed and excel at what you do. For such individuals, one of the most important investment steps is investing in their 401(k) retirement plan, or any other retirement plan offered by their workplace, for that matter. In most cases, your employer would agree to pitch in the amount that you have decided to save in your 401(k) for you, which would mean you can earn a serious retirement fund just by establishing this one plan alone. Depending on whether you choose traditional versus Roth 401(k), you’d be paying taxes before or after the withdrawal of your funds, respectively. 

Consider Mutual Funds

Mutual funds are a great investment option for beginners because investing in them does not require a high level of skill. These mutual funds spread the investors’ money across a basket of stocks, which increases the security of return on your investment. The return on investment is not ludicrously big, but most of these funds charge a minimal fee, while some of them don’t charge you any fee at all. The S&P 500 is one such mutual fund that you can consider to grow your wealth. Low fees also mean you get to keep most of your funds, and with patience, you can grow a decent portfolio. 

Exchange-Traded Funds

Exchange-traded funds or ETFs have the same structure as mutual funds. If you choose to invest in ETFs, your funds will be spread across a multitude of stock options. However, unlike mutual funds, ETFs trade on a daily basis just like the stock market. While mutual funds do have a minimum amount of investment that’s required, which will vary from company to company, ETFs are more flexible. They do not require you to purchase a minimum number of securities for a few thousand dollars. You can buy as low as one share with the commission fee, and if your broker lets you, you can even get started below that point by investing in fractional shares. 

Buying Individual Stocks

Of course, you always have the old-school option of buying individual stocks as well, but this is a risky option that requires some degree of insight into the stock market to begin with. While the risk can be high, the reward is equally lucrative when you consider stock trading. Stock trading generally requires long-term investments, though, so it is important to determine what kind of liquidity of your investment assets you want. Will you be willing to invest the money for upto five years? Do you have backup money to take care of your needs so you don’t end up strapped for cash? If the answer is no, you might as well try a fast payout prop firm to help gain control over your assets’ liquidity. 

High-Yield Savings Accounts

Any investment advisor would tell you that keeping a high-yield savings account is your best bet if you’re collecting funds for an emergency or planning your next big purchase, like buying a house. Online banks offer high-yield saving accounts that let you park your money while earning a better interest rate than your average savings account. These savings accounts still allow you regular access to your money, so it’s just a better option for growing your funds through interest to pay for something you have been wanting to buy. It is also one of the safest options for getting a return on investment in due course of time.

Conclusion

With investment options like buying designer bags and selling them in the retail market over time, the market is rich with options right now. Depending on your skill level and interest in investment, you can opt for a number of ways to quadruple your money in a short time. But even if you don’t have the skills, the methods explained above will help you get started on the path.