money

Wealth Management – Should you just invest in Stocks like Timothy Sykes?

by Josh Biggs in Finance on 25th October 2019

Most average American households are lucky to have some money left aside at the end of each month to save. More often than not this money builds up in a savings account that makes nominal returns over long periods of time and adds little in terms of gains on your overall wealth.

Instead of letting your money sit idly in a bank account it is a smarter idea to invest it in some form of tangible asset that pays a lot more dividends than you would otherwise get from a financial institution. They are many things that one can invest in with confidence in the hopes of adding to there overall wealth in the short and long-term. Some of these investment opportunities are as follows:

Real Estate

The richest people in the world have considerable investments in real-estate as this form of investment is perhaps the safest and most rewarding of them all. The land is one commodity that in most places around the world only appreciates over-time.

Investing money in real-estate often pays off decent returns depending on where and what types of property you have purchased and at what price. However, investing in a property is beyond the means of most and it is often difficult to attain a suitable mortgage interest that makes the purchase of a property a worthwhile investment.

If you have the money to invest in a residential or commercial property this might be the best form of investment opportunity available for you as it allows you to earn both residual income (in the form of rentals) as well as a sizeable payout when you decide to sell.

Bonds & Mutual Funds

If you have some money saved up and want to keep it relatively secure than investing in government bonds might a safe and viable option. Bonds can sometimes pay a higher rate of interest than savings accounts and are one of the safest and most liquefiable assets one can invest in. 

Mutual funds usually are a portfolio consisting of tradeable commodities whose transactions are carried out by financial institutions that in turn share the profits of those transactions back to there investors.

Mutual funds are riskier investments than bonds as they are dependent on market conditions but also offer much higher rewards. Depending on which mutual fund you decide to go with these can often bring in worthwhile returns in the long-term.

Commodities

Commodity trading has been going on for centuries whether it be for precious metals, cloth,  or rare spices. Today, commodity trading is a multi-billion dollar industry that includes all forms of raw materials used by the primary manufacturing sector.

Commodity traders and brokers can make substantial returns from buying these raw materials in bulk at the right time and at the right price and then selling the product in times of shortages or excess demand.

Most investors that put their money in commodity trading often rely on a trader or broker to manage trades and maximize profits as it is a highly competitive and speculative market where one can stand to both gain and lose money rather quickly.

Stocks

Stocks are a popular form of investment for most as it doesn’t involve too large of an investment amount and can offer much better returns than other forms of investments in a relatively short span of time. Stock trading has made many a millionaire overnight and is a profession long seen as being “in the money”. Stock trader and brokers, as well as many notable investors such as Mark Cuban, have made their billions investing in stocks like Apple, Microsoft, Uber, Facebook, Instagram, and other big-brand companies.

Blue-chip stocks are sold at a considerably higher price but are much less volatile and speculative meaning that one can make sizeable returns of there investments if they have the ability to play it smart and hold and sell when needed. Buying blue-chip stocks can be quite expensive and even though they pay well in the form of dividends and returns they are regarded as safer investments and only yield slightly better returns than what you would get from keeping your money in a savings account at a bank.

However, they are many types of stocks one can trade-in. If you are looking for more riskier investments penny stocks can offer perhaps the best returns for a small chunk of change than any other investment opportunity available in the market. Penny stocks are referred to stocks that have a face value of less than $5 and are generally not traded on major stock exchanges.

Although, penny stock trading can be quite risky and even dangerous if you understand the market and are cautious enough you can stand to make a substantial return on short sums of money in a relatively short span of time. Well-renowned penny stock traders like Timothy Sykes have made millions trading in penny stocks from nominal first-time investment and mentor young and aspiring traders through programs like the Timothy Sykes Millionaire Challenge.

Banks & Other Financial Institutions

The safest and least rewarding of all investments is keeping your money in a saving or current account at the bank as your money is just sitting there when it could, in fact, be making you more money. It is always good to have some liquid cash set aside in a savings account but this should equal only a very small percentage of your total investment portfolio as you seek to make the least amount of return by letting your money sit in an account.

Conclusion

For most people investing in stocks is the most attractive of all investment opportunities as it requires no more than $2000 to start building a stock portfolio and generating returns. If you are smart, cautious and pay attention to market conditions you also stand to gain a lot more bang for your buck. The key to better wealth management is to ensure that your current finances and assets are in check and are in fact making you money rather than losing your money.

Categories: Finance