What the Best Place to Invest Money?

However, unlike other asset classes, real estate is highly illiquid. The other big risk is with getting the necessary regulatory approvals, which has largely been addressed after coming of the real estate regulator. Read more about real estate.

A small, risk-free return on your investment. Current interest rates are very low, and those low returns mean you won’t earn a lot of interest for the time being. For now, it won’t be enough to keep up with inflation. However, online savings accounts do offer a risk-free return you will never have to lose sleep over.

Although investing $65,000 has little to do with credit card rewards, we wanted to include this tip from our resident credit card expert, Holly Johnson. If you really want to earn some easy money in the short-term, Johnson says “credit card rewards can offer epic returns with almost no effort on your part.”

Possessing gold in the form of jewellery has its own concerns like safety and high cost. Then there's the 'making charges', which typically range between 6-14 per cent of the cost of gold (and may go as high as 25 percent in case of special designs).

While pursuing rewards may not automatically come to mind when you think of short-term investments, the signup bonuses that credit cards offer can actually be extremely lucrative. However, your “earnings” will be based on your spending instead of the dollars you invest.

For those who would want to buy gold coins, there's still an option. One can also buy ingeniously minted coins. An alternate way of owning paper gold in a more cost-effective manner is through gold ETFs. Such investment (buying and selling) happens on a stock exchange (NSE or BSE) with gold as the underlying asset. Investing in Sovereign Gold Bonds is another option to own paper-gold. Read more about sovereign gold bonds.

I know what you’re thinking, “Jeff, the Roth IRA is NOT an investment.” Trust me, I totally get it. But let me explain why one of my favorite retirement accounts also can work as a short term investing account. With all other types of retirement accounts – from 401ks to Traditional IRAs – you get hit with an early withdrawal penalty and income tax if you withdraw funds before retirement.

Some of the above investments are fixed-income while others are market-linked. Both fixed-income and market-linked investments have a role to plan in the process of wealth creation.

While market-linked investments help in navigating the volatility and in the process generate high real return, the fixed income investments help in preserving the accumulated wealth so as to meet the desired goal. For long-term goals, it is important to make the best use of both worlds. Have a judicious mix of investments keeping risk, taxation and time horizon in mind.

Banks offer a variety of terms for their deposit accounts, ranging from 3 months to 5 years. Which length of CD will work best for you depends on your timeline and how long you want your investment out of your hands. CD’s allow depositors to invest their cash for a specific length of time.

If you are new to mutual funds and do not understand much about investing or mutual funds, you should consult a mutual fund advisor (or financial planner if you want a proper financial plan) before proceeding further.

Banks offer a variety of terms for their deposit accounts, ranging from 3 months to 5 years. Which length of CD will work best for you depends on your timeline and how long you want your investment out of your hands. CD’s allow depositors to invest their cash for a specific length of time.

Money Markets are currently paying a very close APY to one year CD’s. Investors familiar with the discipline of owning a CD can earn a similar return with a Money Market and still have immediate access to their funds.

Money Market accounts provide depositors with ATM cards, checks and deposit slips. Money Market accounts are based on the account balance, not the length of time you invest your money. When CD rates begin to rise, clients can move their money from the Money Market without paying a penalty for early withdrawal.

Just like online savings accounts, an online checking account can also serve short-term investment needs. You get many of the benefits of an online savings account with even more liquidity because the number of withdrawals isn’t limited.

Short-term bond funds are products that are usually only managed by a professional financial advisor. Bonds are not as stable as money markets, but they do offer the potential to earn a higher yield. These bonds are a product of the market and will pay out according to the market’s current condition in fluctuating monthly payments.

Treasury Inflation Protected Securities, also known as TIPS, are government bonds that are indexed to inflation. The interest rate on a TIPS is fixed, but the underlying value of the security rises with inflation as measured through the Consumer Price Index.

Municipal bonds are slightly more risky than TIPS and other Treasury investments, yet a majority of municipalities do not default on their bonds. The more significant risk is “interest rate risk.” In a low interest rate environment, if rates rise in the marketplace, the value of the bond decreases to compensate.

Looking for a great return on your investment? Pay off your high interest debt. If you have a credit card with a 15% interest rate carrying a $10,000 balance you have an opportunity for a great return on your investment. If you pay off that debt it is like getting a 15% return on $10,000.

Chase Slate – The Chase Slatecard offers the best deal for balance transfers on the market. Not only do you get 15 months at 0% APR, but you can transfer balances with no balance transfer fees for the first 60 days. If you’re paying high interest rates on existing debts, consider how much money you could save if you paid no interest for 15 months – it’s like getting free money.

Prosper does not set a specific interest rate for borrowers.  Instead, the website connects borrowers and lenders through online auction-style bidding.  This set-up allows lenders to be more in control of their monthly income since they only accept interest rates they are comfortable with.

If you’re looking for a place to sock away some cash for the short-term, don’t be afraid to think outside of the box. Thanks to the constant evolution of the world wide web, you shouldn’t have trouble investing your funds in any number of innovative online platforms.

Most investors want to make investments in such a way that they get sky-high returns as fast as possible without the risk of losing the principal money they have invested.

And this is the reason why many investors are always on the lookout for top investment plans where they can double their money in few months or years with little or no risk.

while selecting an investment avenue, you have to match your own risk profile with the risks associated with the product before investing. There are some investments that carry high risk but have the potential to generate high inflation-adjusted returns than other asset class in the long term while some investments come with low-risk and therefore lower returns.