How to Invest Other Than in the Stock Market
In addition to the stock market, investment options include short term deposits, bonds and property. Each investment option is different in liquidity, returns and management. Your personal financial statement and how much effort you are willing to contribute to the investment are important factors in deciding which investment is right for you.
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Instructions
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Short Term Deposits
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Research bank savings accounts via the Internet. Conduct your research on banks based on savings account returns and bank locations in proximity to the area where you live. Bank savings accounts offer the lowest risk and smallest return because you are earning interest only on your deposits. Savings accounts are completely liquid, meaning you can withdraw your money at any time and add funds at any time. This type of investment is best for short-term savings goals.
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Open a savings account. You can open a bank, thrift or credit union savings account by visiting a branch location. You may be required to keep a minimum amount in your account, and that minimum will vary. Your personal information will be needed to open an account. This information includes your legal name, Social Security number, address and contact information. You will be required to verify your information with a legal ID card.
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Research certificates of deposit via the Internet. Research banks offering CDs and base your comparison on minimum deposit requirements, length of the deposit and rate of return. Certificates of deposit require you to deposit a lump sum, and the money is then set aside for a set term, usually three months to five years. You cannot use the money you have deposited into a CD until the maturity date. The return on CDs is generally higher than a savings account but smaller than other investing options. In order to open a CDs, you often are required to have a checking or savings account with the financial institution.
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Deposit into a CD. Choose the CD based on the minimum deposit and maturity date you find appropriate.
Bonds
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Research bonds via financial institutions and the Internet. Base your research upon banks offering bonds and the minimum deposit, length of deposit and rate of return on the bonds offered. A bond is essentially a loan to a government agency that will be paid back at an agreed upon date with interest. Since the money is not liquid and bonds have longer maturity rates, returns are higher than short term deposits.
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Research types of bonds through a financial institution. Financial institutions will outline the type of bonds they offer, the minimum deposit, maturity dates and rate of return. Bonds tend to be longer- term investments and are typically not accessible by small investors because of minimum purchase requirements. Bonds can range from $5,000 to tens of thousands of dollars.
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Purchase a bond. If you are not a customer of a financial institution, you may need to open an account before buying a bond. Depending on your personal financial situation you may be required to adhere to different qualifications.
Real Estate
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Research types of property to purchase via financial institutions and the Internet. Base your research on the type of property you would want to purchase and the financial institution that offers the most accommodating loan terms. Property investments can be a residential home, rental housing, commercial real estate or purchasing land assuming future development. Purchasing property typically requires researching and finding the appropriate property, obtaining a mortgage or loan, and keeping up with management and maintenance of the property.
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Purchase property. To purchase property you will need to find a real estate agent to find the property and a financial institution that will originate the mortgage or loan. The highest returns from purchasing property tend to be over a long period of time although, with ample research, some people are able to flip properties, which involves purchasing the property, making improvements and selling at a profit.
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Manage your property. Management of your property will vary from residential general maintenance such as lawn mowing to hiring a management company to find tenants and take care of maintenance issues. The financial return on your property is dependent upon how well you manage the property.
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Tips & Warnings
This article is not all-inclusive, and other investment possibilities may be available. Information on how to participate in these investments vary according to location and personal financing options.
