Investment Strategies for New Investors

If you’re a financially secure individual with everything in line, you may be looking for a productive way to use your additional capital. As you’re sure to know, simply having a sizable chunk of cash sitting in a checking or even run-of-the-mill savings account isn’t netting you a very good return. Luckily, there are several different options to consider that can dramatically increase the returns you’re getting on your dormant cash.

As always, it’s best to do your research before investing money anywhere. This can include talking to a financial advisor or even a simple google search of the best gold ira reviews if you’re looking to get into precious metals. Anyways, let’s take a look at some investment strategies that may be of interest to you.
CDs
CDs are essentially long term savings accounts that don’t allow you to withdraw your money before a given time period is up. Why would you want to do this, you ask? Because CDs offer a significantly higher interest rate than run-of-the-mill savings accounts. Not only that, but thanks to their withdrawal limitations, you won’t be tempted to transfer $20 to your checking account here and there which will add up quite quickly.
Many different organizations offer CDs with varying rates. Your best bet is to do your homework and find which CD is best for you taking into consideration both the duration of the account along with the interest rate.
401k Investment Plans
While it’s usually limited to those who are employed, 401k investment plans are usually a no brainer. If you’re employed with an established organization, chances are you’ve heard of a 401k plan. Many times, organizations will allow you to dedicate a portion of your income to your 401k account which will steadily build up and accrue interest over the years. Even better, some companies will match your 401k contribution up to a certain amount which will make your account grow twice as fast. To get your feet wet in the world of 401ks it’s best to check with your HR department to see what your options are.
Stock Market
Finally, we have the stock market – a place where many have become rich, and even more have gone broke. If you’ve ever heard that trying to play the stock market is similar to gambling, this isn’t too far off the mark. However, this usually only applies to very short term stock market investments where you’re hoping to profit off small gains and losses in the value of the stock. Alternatively, establishing a plan with a financial advisor and investing in companies that have a proven track record will dramatically increase your chances of making profits. However, the key is to be in it for the long haul. While there are definitely people who have been able to make a sizable amount of income from day trading, it’s a very risky investment strategy.
All in all, investing is a great way to make use of cash you’re not using. However, it’s very important to take into account that when making risky investments, there’s always the possibility that you can lose everything. Due to this, it’s imperative that you do your homework and make sure your plan is as rock solid as can be. There are tons of resources online including full courses you can find via Google. Another great resource is academic articles focusing on everything from stocks to precious metals that you can find by searching for gold ira reviews.