Did you know that you could have “free” trips every year if you invest smartly? If you think the concept of a “free” trip sounds ridiculous, we assure you’re entirely possible. Investing should not be looked at as something you do only to amass large sums ofmoney for retirement. Any time you want to build up a nest egg – be it for retirement or a big trip – you can do so though smart investments. Take a European trip or a cruise to Alaska. By following any of these tips you can take advantage of smart investing:
- 5-Year Treasury Inflation Protected Securities
This type of government bond goes up in price every time inflation goes up, which is a guarantee pretty much every year. While they offer a very low interest rate — 0.5% to be more exact — the bond itself increases in price every year. At current economic conditions, the 5-Year Treasury Inflation Protected Securities will go up in price 2.5% which if sold means PROFITS for you. That being said, you get earnings from both interest and capital gains which when added together can give you the financial resources for your travel needs.
- CDs (Certificates of Deposits)
CDs are one of the most convenient ways to invest for the short-term. They have different terms ranging from three months up to two years. Both banks and credit unions offer them, the latter usually offering higher rates than the former. Right now, the highest rate offered is around 1.5% to 1.8%. It is one of the most common ways to stash away some cash for a desired future trip. Just be sure not to withdraw the cash before the term ends or you will end up getting hit with fees.
- ETFs and Short Term Bond Funds
These are among the most profitable investments for your short-term travel needs. Short-term bond funds invest in fixed debt from corporations and other relatively safe bonds. While there is a risk associated with them, it is usually very low. Some high-yield bond funds can earn you up to 5% in interest rates. Some ETFs have even higher dividend yields. ETFs invest in a large number of stocks or indexes and minimize risk through this form of diversifying. Some of them pay yields as high as 30%.
Limiting Your Risk
Investing usually comes with a certain amount of risk, to be sure. You have to compare the risks vs. rewards when considering which investments are best for your financial situation and outlook. While investing in CDs is usually the safest choice, some other investments which require the services of a broker can expose you to a higher risk. An experienced stock fraud lawyer can help you with all your legal needs, as well as ensure your capital is not illegally handled. A securities fraud lawyer is a good resource to have in the event your broker engages in unethical practices such as excessive trading known also as “churning.” A stock fraud lawyer is acquainted with all the rules and regulations imposed by the Securities Exchange Commission, which is the entity that regulates the stock market. With this knowledge and experience, Thomas Law Group can guide you towards getting the returns you are legally entitled to receive – should any mishap occur.