Financial wellness seems to be a topic on everybody's mind due to the economic straits many have found themselves in per today's COVID economy. While some people are focused on getting by, others define financial wellness as making moves that can catapult their wealth during these tumultuous times.
Many will choose high yield investment vehicles to create that result.
But what are high yield investment vehicles? Are they worth finding and putting money into today?
High yield investments have indeed become riskier in today's market compared to periods of financial wellness. Still, given today's risk, the opportunity for reward is astounding.
If you're interested in placing your bets and seeing if you can make money off of your money in a big way, keep reading to learn about nine avenues that may be worth exploring.
1. Fix and Flips
When foreclosures start, fixing and flipping properties becomes a very lucrative investment vehicle. Foreclosures tend to mean tenants leaving houses in poor condition very abruptly. This puts pressure on banks to fix those homes and resell them.
Banks are in the business of lending, not owning residential real estate so they become desperate to offload foreclosed homes as quickly as possible to buyers that are willing to fix flaws on their own. Therein lies an opportunity!
Get great prices on dilapidated properties, fix them cheaply, and rent/resell them at a profit.
2. REITs
Don't have the kind of cash lying around required to purchase a fix and flip? If that's the case, you can still get in on the real estate market.
REITs or "real estate investment trusts" are essentially stocks you can buy that are made up of hundreds if not thousands of real estate holdings. Every stock you purchase gives you a percentage of those real estate holdings and you get to enjoy a portion of their profits multiple times a year in the way of dividends.
3. P2P Lending
Why let banks have all of the fun when it comes to lending? You can get in on letting people borrow money in exchange for interest via numerous peer-to-peer (P2P) lending websites.
The idea is simple. Just create an account on a lending website, find loan requests that interest you and fund them at the dictated interest rate. Interest rates vary based on the likelihood that a loan will default.
For additional security, multiple P2P lenders often fund a single loan which spreads out the risk of non-payment.
4. Hard Money Loans
Hard money is very popular when it comes to real estate deals.
Typically, banks don't want to give investment property buyers money since they see their ventures as too risky. Consequently, to get their hands on the money they need, real estate professionals turn to private lenders for hard money.
Hard money lenders can expect returns that are synonymous with high yield investments but must understand that if a borrowers' real estate deal goes bad, you could be stuck with a property on your hands.
5. Venture Capital
Hundreds of thousands of startup companies are launched every year. Most of them fail. If you have a keen eye for business though and can pick a winner at its inception phase, you could get very rich in the world of venture capital.
Put simply, venture capital invests in businesses in hopes that those companies will take off and become culturally (and financially) relevant.
There's lots of money to be lost in the world of venture capital but look no further than affluent hubs like Silicon Valley to see firsthand that succeeding in this world is very possible.
6. Foreign Emerging Markets
If you were to have invested in the infrastructure of China 15 years ago, think about how much money you would have made seeing how far the country has come. While China is probably an expensive bet today, other developing nations across the globe are enjoying a rise that would love foreign investment.
Consider putting your money into integral ventures that exist in South East Asia or South/Central America. If countries you get a foothold in see economic growth, you stand to make a lot.
7. Currency
Every day you earn money, you're passively participating in the high interest investments game. That's because every day, currencies rise and fall in value.
For example, if you were to buy $100,000 worth of Mexican Pesos today and the Peso became worth more tomorrow, you could exchange your pesos for dollars and make over $100,000.
Currency speculation is very risky as several factors affect currency which can be hard to predict, particularly when you're dealing with developing countries.
8. Sports Betting
What separates sports betting from other means of betting as a viable high yield investments vehicle is that armed with the right knowledge, you can have a serious impact on your results. This makes sports less based on chance and more based on research and odds, similar to a standard business investment. Just don't bet more than you can afford to lose.
9. Yourself
There is perhaps no investment more valuable than an investment in yourself. By taking money and learning a trade or putting yourself through college, you can increase your earning potential exponentially throughout your lifetime.
Furthermore, investing in yourself can bring about several non-monetary benefits that are priceless!
High Yield Investments Come With High Risks so Tread Carefully
The high yield investments we've mentioned (besides our last one) carry extraordinary risk that you could avoid by investing in CDs, bonds, or stable mutual funds. Granted, stable investments yield paltry interest rates.
Just be sure that you understand all risks associated with where you park your money before you make any moves. There's nothing worse than when an uninformed investment leads to you lose some or all of your savings.
For more guidance on all things finance, our team welcomes you to read the newest content on our blog! Visit the Investing section of our finance blog right now for more high yield investments advice!
