Monday, October 21, 2013, AM | 1 Comment
Even with the economy still in the tank, there are still plenty of ways to successfully invest your money. Before executing any type of investment, be certain that you first identify the goal of your investing, and second, that you understand how your money is invested.
Here is a quick look at five different investments that are good ways to earn more money.
The surge of do it yourself television has made real estate investing increasingly popular. A good example is Utah investment opportunities in real estate, where there are a large number of homes that can be bought for low prices, renovated, and sold for a substantial profit. Banks portfolios are at record highs, and homeowners are still looking for ways to get out of underwater properties. Do your due diligence, and make certain you pay below market pricing and that you don’t count on double digit appreciation.
A more sophisticated type of real estate investment, tax liens accrue interest at varying rates depending on the state that the property resides in. The lien becomes foreclosable after a period of time. Due diligence is extremely important and you need to consider whether you ultimately want to own the property, as that could be the end result.
Traditional Brokerage Accounts
A brokerage account allows an investor to purchase and invest in a wide range of options, such as stocks, bonds, mutual funds, options, and commodities. Online research about each of these options is abundant, so be certain you educate yourself before taking a position. Investment advisers recommend staying on top of your position, which usually requires an hour of research per position in order to stay well informed.
A traditional brokerage account has trading fees associated with it, but the worst fee that you will have to pay is to the tax man. Between short and long term capital gains taxes, you could find yourself paying Uncle Sam up to 40% of your profits. The best way to save for retirement and not give your gains away is by setting up an IRA (Individual Retirement Account). Funds in an IRA can be invested in almost anything, including some commodities, and the portfolio can grow tax free.
Saving for college can be a daunting task, especially if you are relying on skimpy interest rates in money market or savings accounts. An ESA (Educational Savings Account) allows the account holder to invest up to $2,000 per year per minor to be used for secondary and post-secondary educational expenses. Funds in an ESA grow tax free, and must be used for qualified expenses, otherwise a tax or penalty may apply.