Every financial advisor who is good at their job knows about the importance of investing. Each day, they communicate to their clients the value of investing and how it can secure their financial future and improve their quality of life.
If you are serious about planning for the future and increasing your income, then an investment strategy is necessary. Most of the world’s wealthiest individuals earned a large percentage of their fortunes from investment strategies.
However, there are many different ways to invest your money to get a great return. Let’s talk about five investing strategies that could multiply your income and set you up for a more comfortable future.
Real Estate
Real estate can be one of the most lucrative investment deals that you could make. First, property tends to appreciate over time. The longer you own it and maintain it, the more likely it is to increase in value. Plus, there are many different types of properties that you can invest in. You could turn part of your home into a rental unit. You could invest in a rental complex using a DSCR loan. Acquiring commercial property would allow you to make a profit from charging rent to business tenants. Some DIYers also enjoy the process of purchasing downtrodden houses, fixing them up, and flipping them for profit or renting them out. There are many things to consider when investing in real estate, so make sure you research the market.
Acquiring Small Businesses
If you have the resources to do so, then investing in existing businesses is another option to increase your income. Acquiring small businesses is a popular strategy for investors to create additional revenue streams. The key is to invest in businesses that you understand. If you have a background in the food and drink industry, then invest in Calgary restaurants for sale. Come from a fitness background and understand how to run a business effectively? An athletic shoe store that is struggling could be a great investment if you have the acumen to help turn it around. Acquiring businesses can diversify your portfolio to provide greater stability.
Renewable Energy
An industry that continues to grow at a rapid pace is that of renewable energy. Green energy is ripe for investment opportunities, from solar to wind power. Companies that are developing these technologies are likely to see increasing profits in the coming years, as they have for the past decade. Investing in stocks for these companies could become a lucrative opportunity that will yield a high ROI as the industry keeps growing. Some companies that might be worth considering for your portfolio include Nextera Energy, First Solar, and Solaredge Technologies.
Artificial Intelligence
Another wave of the future that is already having an impact now is artificial intelligence. AI is being adopted for numerous applications, changing the business landscape and other aspects of everyday life. Investing in AI is possible by finding the companies that develop AI software and those that create the hardware that hosts these programs. Some of the foremost companies for AI include Microsoft, Nvidia, and C3.ai. While you can purchase stocks for these companies directly, it also might make more sense for your goals to check out exchange-traded funds for AI.
Mutual Funds
Investing in mutual funds is a wise strategy if you are looking for lower costs and more diversification. Maybe you do not have the resources to pay for real estate or a small business, but that does not mean you cannot afford to invest to secure a better future. Mutual funds spread their investments across multiple company stocks, so the risk is lower to the investor in case one company decreases in value. Additionally, you may not have the experience or desire needed to manage your investments yourself. Fortunately, mutual funds in Calgary allow you to use the services of an investing expert who can manage the portfolio on your behalf for the best results. The lower cost of investing in a mutual fund is the result of spreading stock purchases across all the investors.
Brighten Your Future With Smart Investing
Wise investing is not easy. You have to understand how the market works and what types of strategies have a higher ROI. It also depends on your income and financial capabilities. Are you able to invest a lot of resources, or do you just have some extra income that you want to turn into more money?
No matter what type of investing strategy you pursue, greater returns can increase your quality of life or help you save for retirement. Research the five strategies listed above or find other options to decide what will be a good fit for your resources and capabilities.
