5 Investment Options For The Passive Investor

5 Investment Options For The Passive Investor

Do you dream of quitting your day job? Well if you want to quit you’ll need to find another way to generate revenue. One such way many break free from the chains of your 9 to 5 day job is to become an investor.

Here are 5 ways to make side income as a passive investor.

Investing In Metals Like Gold & Silver

There have been many ads floating over the internet and on television suggesting the best way to invest in your future is buying gold or silver. Where some might see investing in metals, such as gold and silver, as controversial, others see this as the last stronghold for wise investments. The fact is, there are both pros and cons to investing in precious metals.

Fluctuation in the prices of metal is very unpredictable because they are very dependent on the rise and fall of the American dollar. Should you choose to invest in metals, small investments have potential for profit that will balance out the potential for risk. The advantage of metals like gold and silver, unlike most other investments, are that they’re materials you can actually hold in your hand.

Invest In Real Estate

Like precious metals, real estate is an asset you can physically hold onto as well. Also, like metals, the market will constantly rise and fall. If you are serious about investing in real estate, understand that if you cannot afford property directly around you, there are many options worldwide.

If you have research the risks as well as the possibilities, this could be a wise choice. Many countries are allowing foreigners to invest in their real estate, but research should take place first. Real estate investment in foreign countries is especially significant in developing countries where real estate is cheap, but have the potential of becoming quite valuable in a few years.

P2P Lending

Peer-to-peer lending is the lending of money between people online, on a large scale. At its most basic level, P2P lending is not much different than lending money to a friend. The basics are pretty simple, someone has money and someone else needs money.

Lending Club and Prosper are the two main sites that help thousands of borrowers and lenders connect with each other and facilitate the process. Borrowers are typically looking to refinance their high interest credit card debt (>25%) into lower rates (<15%). Sure, not everyone will pay you back in full, but lenders like you can expect at least a 5% return on their investment.

Crowdfund Investments

Perhaps the best investment option for someone with a full-time job are crowdfunded investments. Through crowdfund investments, you are only required to invest a small portion of the required amount. Your future returns will depend on the amount you initially invest. You have the ability to invest in large businesses that could potentially make a great profit.

Since you have the option to only invest a small amount, you could invest in a number of businesses. By investing small amounts in many different businesses, you could expect to see profits from some of those investments.

Invest In The Stock Market

The most difficult side to investing in stocks is knowing what stocks to select. There are many small, upcoming companies that you could invest in and make a profit, if you do your homework and research. But you could also lose your money too.

A safer bet is to invest in large established corporations. However, these stocks hardly move up or down, so you certainly won’t make enough money to retire on.

So what’s the best tip to actually make money with stocks? Invest in index funds. Most experts will advise you to invest in a diversified portfolio of stocks, which is what index funds essentially are. An index fund is a mutual fund that will try to match the performance of a major market index. The perfect example is: The Dow Jones Industry Average.

You probably will not become wealthy investing in an index fund, but they do outperform actively managed funds 80% of the time. Index funds are low cost, low maintenance and low risk making them an ideal choice for passive, part-time investors.

Whatever avenue you want to invest your money in, always, always do your homework first. Get all the information you can before sinking your hard earned money into an investment. Good luck!

About Edwin

Edwin is a marketer, social media influencer and head writer here at Save The Bills. He manages a large network of high quality finance blogs and social media accounts. You can connect with him via email here.

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