While it is prudent to begin investing in various valuables, putting your money into something without evaluating the potential risks is not wise. The trick is to understand at least the basics of the asset you wish to acquire, helping you determine the possible outcomes of such pivotal financial decisions.
For instance, accredited investors are more susceptible to risks as they can access unregulated securities. In contrast, bonds carry fewer risks but may also bring fewer returns. Therefore, knowing the fundamentals of the assets you wish to own is essential before making a final choice.
You can refer to the following list for a brief overview of some top-rated acquisition options, helping you determine the one most suitable for you.
Stocks and bonds
Scores of companies put shares of their stock on the market to raise money for the business, allowing people to purchase them at reasonable times. You can also buy or sell your shares in a company with fellow purchasers, enabling you to decide the wisest course of action depending on the company’s performance. Invariably, the shares of a company that does exceedingly well will increase in value and vice versa.
In simple words, when you purchase a bond, you permit the issuer (or seller) to use the money you put in and pay it back with interest. Although the returns may not be sky-high, these variants are typically less risky. The primary risk factor is that the seller could default on the money, making it essential to vet the options carefully before making the purchase.
Look for government and state bonds backed by credit and faith, succeeded by corporate varieties, which are the next best thing.
Unregulated securities via accreditation
Accredited investors are financially secure institutions or individuals permitted to purchase securities not registered with the SEC. You must meet certain criteria, such as specific net worth and income requirements, to qualify as one of these.
More specifically, your net worth must be over a million dollars and earning potential over $200,000 for at least two calendar years. While the former can be met individually or collectively with your spouse, the latter changes to $300,000 when measured collectively with your spouse.
These types of people have access to hedge funds, angel investing, venture capital, private equity, and more. But while there is incredible potential for high returns in this variant, the risk is high, too, proving that you need not become an authorized investor of this kind simply because you qualify as one.
The multi-billion-dollar global artwork market is ever expanding, testifying to the popularity of this remarkable asset worldwide. Moreover, reputable industry experts have now made it possible for ordinary folks and authorized investors to purchase shares of art pieces by world-renowned artists like Banksy, Picasso, and Basquiat. Conveniently, the artworks are stored and looked after by the company itself, allowing investors to enjoy the returns once the piece they have invested in is sold.
Furthermore, sophisticated platforms like these have a secondary market wherein you can sell your shares to other investors, allowing you to liquidate your assets quicker and easier. So, you can browse for a reliable platform that lets you buy shares of any pieces of remarkable artwork you admire, widening the potential for good returns.