Smart Investments You Can Make as A Serial Entrepreneur

Derek Notman |

Many entrepreneurs and professionals perceive investing as a prospect only for the future when they’re in the green and have money to move around. But given the digital nomad revolution, this isn’t necessarily the case anymore.
In the information age, there are many ways to invest your money, to generate income passively. Making money from investments doesn’t necessarily mean the only route is through stocks and bonds, although.
Here are some smart ways to invest your money. Some traditional methods, and some slightly more alternative ways. All with the same goal, to help you grow your money.

 

Traditional Investing

     

     Investing in stocks

Investing in stocks has been around since the late 1700s and is one of the most common and best ways to invest your money if you have a lot of it, and if you know how to trade.  

In short, when you buy stock, you essentially own a small part of the company you have bought into.

You make your money if the company you have bought into profits, in which case they’ll pay out your portion in dividends. This is of course, based on how much stock you own.

Where you make your real money when the company grows because this is when the price of your shares does, you can then sell these for profit when the company you’ve invested in is on the rise.

You can also choose not to sell, waiting for the stock prices to be at their peak, but then you run the risk of losing money if the prices drop. Here’s an introduction on how to trade.

 

     Investing in bonds

A long but usually lower volatile way to make money on your investment is by investing in bonds. This method works as follows.
When an individual invests in a bond, they are effectively loaning money to the government or a publicly owned company. This is typically a less risky way of investing because you’re buying into something that has a lower chance of failing and if it does fail you are given more protection than the stockholders of the same company.
The organization, be it government or publicly owned then pays the individual interest on the loan throughout the bond’s life cycle.

 

Retirement account investment

This is possibly the smartest and most calculated way of creating wealth for your future. Our advice is to contribute as much as you can afford as it gives you tax advantages and growth that compounds annually.

When saving over an extended period (the duration of your career), your money starts to work for you as you earn interest on interest.

We are well versed in a variety of retirement accounts at Intrepid Wealth Partners and understand that it requires a specific blend of current income and future growth while minimizing risk & taxes.

 

New age investing

   

      Arbitrage trading

Arbitrage is a modern way of investing and can be quite rewarding. In summary, the concept works as follows:
Arbing is when an individual makes a trade and profits off it by exploiting the difference in price of identical or similar stocks on different markets or different structures.
For example, the stock of a company or corporation is trading at $20 on the New York Stock Exchange, and at the same time, it is trading at $21 on the London Stock Exchange. An Arber would buy the stock from the NYSE and sell the same shares immediately on the LSE and make themselves a profit of $1 per share.
Profit is made off the difference in price on two separate markets.

 

     Forex Trading

The Foreign Exchange Market is a place where foreign currencies are traded. It is currently the most liquid market in the world, where over $4 trillion is turned over daily.

As lucrative as this form of trading is, you need to be well-versed in technique and method as well as constantly keep a close eye on relative markets.

Its methods are similar to that of trading on the stock exchange except you exchange one currency for another and make your money on the change in the price of a currency.

It’s complex but profitable so we suggest you gain as much understanding as possible before making your first trade. Here’s a guide.

 

 

For investment advice, please feel free to contact us at any time and let us help you build and maintain true wealth. Thanks for reading!