The myriad of savings and investment options available today can be complicated and confusing. If you’re not familiar with investment strategies, it’s not easy to select those options that will produce the best returns for your money. One of the downsides of investing your money is that you may lose access to the funds while they’re invested.
For example, if you invest in real estate, you need to sell or rent the property to see any money from it. On the other hand, if you invest in liquid investments, it’s much easier to access your money if you need to. With liquid investments, you get the best of both worlds – you can earn interest from your money, and you still can get to it if you need to. Try these investment options that are both easy and liquid – you can invest in them right at your own bank, and you have fast access to your money should the need arise.
1Certificate Of Deposit
A certificate of deposit is one of the simplest investment options with decent returns on your money. A certificate of deposit (CD) is also referred to as a time deposit. This means that your money has to stay invested for anywhere from three months up to five years for the stated return.
If you need your money for a true emergency, you can cancel the CD, although you’ll forfeit some, if not all, of your return on it. A good option is to go with the short, three-month CDs until your finances are stable, or you have some additional money put away. Interest rates are higher than a regular savings account. Your savings are insured at all times. Your interest rates are set to increase the longer you have your money saved.
2Money Market Savings Account
Having a money market savings account is also a great option for investing and making the most out of your money. With this type of account, your interest rates are much higher than with a standard savings account. One added benefit of such an account is that you would be limited to the number of withdrawals each month as a technique to safeguard your investments, so you’ll make the most out of your money. Another benefit is that your investment of $250,000 or less is insured.
3Money Market Mutual Fund
Money market mutual funds are a little riskier than CDs and money market savings accounts; however, with greater risk comes the opportunity for greater returns. These funds allow short-term security investment. However, the fact that you are investing in short-term securities means that your investment would be exposed to less risk. To get the most out of it, try to make your investment principal as high as possible because this is when the truly good returns come into play.
4Tax-Exempt Money Market
A tax-exempt money market option is a type of money market fund. The difference is that it’s liquid and allows investment in tax-exempt securities. You don’t need to be as concerned with investing the highest amount possible because your returns will be tax-free and of more financial worth to you.
You can expect to make as high returns as the seasoned investors just by adding a little common sense to your decisions. Learn from the smaller liquid investments. And once you build up some funds where your money is working for you, then it’ll be easy to transition into a higher earning portfolio.
Arlene Garretson is a proud resident of Daytona Beach, Florida, mother, and author. When she isn't writing about self-help, she enjoys hiking and photography: a great combination.
