Investing in assets is a simple yet great way to accumulate and grow your wealth whilst establishing yourself financially. An asset can be anything from property, to shares, to bonds and cash.
Since there are many different types of investment products available, William Schantz emphasizes the importance of doing your research and understanding which ones would best suit your individual needs and circumstances.
Low-Risk Investment Options
Investing in property is a great way to build long-term wealth. It can be a more hands-on investment than other options, but it can be very rewarding if you’re prepared to put in the hard work. There are many different ways to invest in property, such as through a buy-to-let mortgage, property development or even house flipping.
Investing in shares is a popular way to grow your wealth. You can buy shares in individual companies or through a managed fund. When you invest in shares, you become a part-owner of the company and are entitled to a share of its profits. Shares can be volatile, so you must understand the risks before investing.
Bonds are another option for investors looking for stability and regular income. They are effectively loans that you make to a government or company, which they then use to finance their activities. In return, they agree to pay you interest payments at regular intervals and return your initial investment when the bond matures.
Investing in cash is a low-risk way to grow your wealth. Cash investments include savings accounts, term deposits and high interest-bearing accounts. The interest rates on cash investments are usually lower than other types of investments, but they can still provide a decent return if you’re prepared to lock your money away for a set period of time.
Collectables such as art, wine, coins or stamps can be a fun and exciting way to invest your money. They can also be quite volatile, so it’s important to do your research before you invest. It’s also worth bearing in mind that collectables can be challenging to sell, so you may have to hold onto them for a while before seeing a return on your investment.
Commodities are natural resources that are used to produce goods and services. They include things like oil, gas, gold and wheat. You can invest in commodities directly or through a managed fund. William Schantz points out that commodity prices can be volatile, so it’s important to understand the risks before you invest.
Cryptocurrencies are a relatively new type of investment, and they’re often considered to be high risk. Bitcoin is the best-known cryptocurrency, but there are many others available. Cryptocurrencies are not regulated by governments or financial institutions, and their value can fluctuate wildly. If you’re thinking of investing in cryptocurrencies, it’s crucial; to do your research and understand the risks involved.
ETFs are managed funds that track an index, such as the ASX 200. They provide exposure to a wide range of assets and can be a good option for investors who don’t want to pick individual stocks. ETFs are traded on the stock market, so their prices can fluctuate throughout the day.
Those mentioned above are just some of the many different investment options available. William Schantz believes that people of all ages and financial statuses can invest if they simply acquire the proper knowledge.