Many of us with average incomes and no savings to speak of are often intimidated by the world of investments, savings and shares but in fact, we needn’t be. It is possible, regardless of our financial position, to use whatever spare cash we may have to build a brighter future. Many of us think it is a simple matter of throwing money into a savings account and waiting with baited breath for a fortune to amass, but the world of investments offers a much more dynamic return for our cash.
Despite the recent headline grabbing stock market crashes we have recently witnessed, it is not all doom and gloom for the investor. Many of the high profile individuals who have suffered the worst of this crisis are deeply involved with top end investments. This means that when share prices fall or rise by just a fraction, the investor stands to lose or win big.
For the rest of us who can’t afford expensive shares in Amazon or Apple, we can take comfort in the fact that these tiny increments will rarely affect our investment. In addition to this, lower priced shares have the potential to grow big. This means, for the lucky ones at least, those meagre initial investments could sky rocket, providing dividends we wouldn’t dream of. Here then, are a number of options available to the small investor wishing to break free from the depressing interest rates provided by the banks in order to provide a healthy retirement fund.
Individual Shares
Many believe that putting money into individual stock is a dangerous game. However, for the small investor there is very little to lose and, should your chosen company be particularly successful, you may stand to make a lot of money in both share prices and dividends over a long period.
Equity Income Funds
This type of investment will spread your cash over a wide range of companies meaning you stand to lose less should one single company fail. Often you may find a greater return from your cash and you will benefit from much more security but ultimately, you are less likely to fall upon that big win.
Corporate Bonds
Corporate bonds essentially amount to you providing a loan to your chosen company. This investment can bring high rewards but there is also the risk that your company will default on the loan and you lose the lot. Remember the higher the yield the greater the risk.
Investments can be a tricky business and one thing you should not forget is that you are playing the long game rather than jumping in for a quick return. However, the small time investor has very little to lose in the face of depreciating savings accounts and there is always the tantalising chance you might make it big. So why not take the plunge and take a look at the current market figures with Quotenet. With up-to-date statistics and a wealth of useful information it is the perfect place to start your investment adventure.
The way I think of it is that everyone who has money has invested it in something. Cash is simply the default choice.