The current health situation has brought a range of uncertainties and high inflation rates that have set us on a bumpy ride in the months or even the years ahead. Thus, many people decide to invest and build a diverse portfolio in less risky assets that can help them beat inflation and generate a passive income.
Being an investor requires consistency and perseverance; you can’t expect to become rich with a couple of monthly investments! If your goal is to maintain a steady flow of income and maintain your capital, then the investing path is the right one for you.
If you want to learn more about how to save your money and even double it, follow along to learn about the best low-risk investment options.
Saving Bonds
Per the philosophy of Thorsten Wittmann, a self-made multimillionaire who cracked the code of passive income and generated wealth by investing, you should not work day and night on a fixed income until you reach retirement and possibly end up in poverty. You can build your wealth by investing a steady amount over a long period in better short-term investments that are bound to yield better results.
If you want to get rid of your financial worries and get the independence you’ve always dreamt of, investing in saving bonds will help you protect your capital. Series I savings bonds are secured in the long run and can even protect you from inflation. This means when inflation goes up, the bond’s value rises as well; and vice versa.
The bonds are a great way to protect your money against inflation and get a fixed rate. It will help you protect your investments against increasing prices and are considered a safe investment option.
High-Yield Savings Account
A high-yield savings account allows you to stash money in the bank and get strong returns with your investments. It’s the golden environment for doubling your money and getting solid payouts. The top high-yield savings accounts are said to have paid out 3% in the last couple of years and are a place where you can access your money in emergency situations without having to pay the penalty.
High-yield savings accounts are great for investors who are looking for investment options with no risks and significant gains.
Invest in Blue Chip Stocks
The old-fashioned way of making money is slowly replaced with new and exciting opportunities to earn money while you sleep. The best way to double your money over a certain period is to create a well-balanced and solid diversified portfolio and invest in blue-chip stocks.
According to the S$P 500 Index, the best index for blue-chip stocks, the return on investment in this type of stock has risen to 9.8%. And if you’ve diversified the portfolio with corporate bonds and followed the rule of thumb of 40% in bonds and 60% in equities, your annual return on investment should be around 8.7%.
However, these statistics are performed per the latest investment trends, and the results might be different for every investor. As an investor, you should be aware of the drawdowns and expect that your investment will face ups and downs as the years go by. Your money will not stay in a linear ascending position but rather zig-zag depending on global events, economies, and politics.
Invest in Real Estate
Many investors opt for real estate investment options to build wealth and double their income. Even though it’s far less attractive for investors considering the latest investment propositions, housing prices have risen worldwide.
For example, housing prices in North America have witnessed a dizzy record. The increased leverage you can get from the mortgage can help you get great returns and double your money. If you own a property worth half a million dollars and have a 20% down payment, you can get a mortgage for $400,000 and put down$100,000. And if the property price increases in the following years, your money will double.
Zero-Coupon Bonds
If you want to play it safe and get on the slow lane of doubling your money, an investment in zero-coupon bonds is the right choice for you. Zero-coupon bonds are bonds you buy at a discount until they reach maturity. This means there is only one pay-off until the bond matures and reaches its potential value.
One drawback of zero-coupon bonds is the sensitivity to interest rates. They can lose value as the interest rates grow.
Double Your Money. And Stop Worrying About Your Retirement!
It’s in our human programming to live day by day and think of retirement as a distant future. Nevertheless, it’s something we should be aware of and make sure we’re well protected in the old days as well. To do that, you can double your money and invest in some of the options mentioned above in this article!
*This is not financial advice*
