Investment Ideas

Best Ideas to Invest Intelligently

Everyone around wants to earn passive income so that they could spend their future life in peace
without working. But for that you have to invest money or start a business. Investing money is not as
simple as you think and if you need results like that you won’t have to work in your future and enjoy
your life by resting at home. Earning passive income and trying to work for that has a very big impact on
your life. Have you ever thought what if you got sick in your 60’s or 70’s then who will earn for you and
what will be your source of income? To overcome this you have to work to get passive income and the
easiest way to earn passive income is to invest your money.
As you would be now thinking who you can invest so that you can get the maximum results. There are
some tricks for that and today in this article I have come up with some ideas that will help you invest
your money intelligently and you would earn a maximum profit. Everyone has his own plans but the
factors you should consider here is your age and income. Let’s start with the 1 st idea,

1- 401(k)

This a savings plan that is mostly offered by your employer in which a specific amount is being cut off
from your income every month and is being invested. One of the benefit that 401k provides is that you
won’t have to worry about the income tax on investment made at 401k. To get the maximum from 401k
make sure you match your employers match. To explain that let me give you an example that your
employer offers a 50% of match on contribution up to 6% and now you are paying 6% of your pay for
401k then your employer will pay the 3% of your contribution every money. That is a good amount for
savings though and if your employer does not offer a match it is still worth it. So you should better be
looking up to this to take a start. You could pull out your amount with profit at the end of your
retirement.

2- Savings account (online)

Saving money in your traditional bank is not intelligent anymore as your bank pays you very less interest
rate that is not making a big difference in your life. Now a days there are online banks that gives a big
amount of interest rates in compairision to your traditional banks and you can also open your account
for free and manage them for free. You should use these online funds for short term goals and you
should first save an emergency fund before going to any vacation. One of the benefit that these online
bank account gives to you is that you can easily pull out your money whenever you are in need. This
could not happen in your traditional bank or in your 401k plan where you will be charged for that. CIT is
an online bank where you can get interest rates as high as 1.85%. In these type of banks it is very easy to
invest like you can connect your debit card or credit card with it and set a percentage that should be put
up in to your savings account every month. By this you would be able to save good without disturbing
your budget and you would also earn a good amount of profit on that too. These savings accounts are
one of the best methods to save a good amount of money.

3- Crowdfunded Investments

Crowdfunded investments basically means that a lot of people from different places invest in a single
mutual fund and that fund could be a property share or something else that can give profit and after
that when that mutual funds gives profits it is shared between all the participating members. To get the
maximum benefit you should look for real estate crowdfunded investment. You can earn about 8% to
12% of profit or even more in some cases in these type of investments. There are some online
companies that will help you out in this regard. For example there are companies like Fundrise, Equity
Multiple and Realty Mogul that help you invest in residential or commercial properties with as little as
$500 to $1000. The profit could be different according to the type of investment you choose. There is
another platform named as Lending Club that provides loan to people who are in need of that for short
period of time. My suggestion to you would be that you should take a start from another investment like
401k and then after spending some time in that then you should look for crowdfunded investment.

4- Mutual Funds

If you are looking for long term savings then you should go for mutual funds as they are a pool of money
developed by other investors. You should make a portfolio of stocks or bonds to make the best out of
mutual funds. You need not to worry about the profits as these funds are managed by professional
managers who work for it all the time. In order to invest in these mutual funds you had to go through a
brokerage account but if you want to save money from these brokers you can look for online companies
like Vanguard or Fidelity as they charge a little or no fee.

5- ETFs

ETFs are similar to stocks. Exchange Traded Funds mainly known as ETFs are a type of stocks or
securities that enables you to access a number of markets around the globe. These type of funds can be
bought from stock exchange through a brokerage. These type of investment are best when you are a full
time investor and you are ready to go with the flow of stock market and take necessary risk where
required. You have to set your goals and make a portfolio so that you could have a clear image of where
and who much to invest. ETFS comes with many benefits like you won’t have to pay any sales fee. In
these kinds of Funds you would have to pay a brokerage commission.

6-CDs

CDs is a bit different from other kind of investment funds. CD means certificate of deposit and here you
would deposit your money for a fixed amount of time and you cannot take that amount out in that
period unlike other online savings account. And if you would take out your money you would be fined so
there is no benefit of saving then. The CD offers you a big amount of interest on your deposit but you
have to wait for your time. The time limit depends upon you and the time you set for your deposit is

called the maturity time and the interest rates are fixed. This is a great idea if you have an amount that
you do not need for a time. This kind of deposits are risk free and you do not have to pay any kind of fee
here. To explain how much you would earn let me give you an example let us suppose you deposit
$10,000 at an interest rate of 2.5% for 5 years you would get $1250 for that after the maturity time.

7-Investing for a longer period

One of the best way to build up an empire for your future is the stock market. You could definitely get
that much income in the future after working for some years in the stocks. It could be fun while
investing in singles stock but this is not a reliable idea for your future. To earn a good amount you need
to be very consistent with your investing and you should be calm enough to go through the ups and
downs of the stock market as the shares will sometimes go in loss and sometimes in profits. But if you
are investing for a longer period of time then one thing for sure is that you would get a very good result
in the end. This could be a stressful job to do and you would have to embrace a lot of things in this
process. Famous persons who had become millionaire from the stock markets always suggest to invest
in the Index funds in the starts because these funds are risk free and gives a good amount of profit. One
of the thing that matters here is your age because if you start investing in a young age you would be
able to make a big empire out of it because it will give your money the time to grow. Buying individual
stocks is never the safe and it is big gamble so if you are not ready for losing your money then you
should not go for that.

So these were some of the best ideas that will help you to invest intelligently. Make sure you go through
them before you start investing. Do comment in the comment section below and also share your
experience of how motivated are you and who relaxed are you feeling about investing your money after
reading this article?
Have a good day!

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