What is the best investment idea to get rich?

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Answered by: Ray, An Expert in the Investing 101 Category
There's one question asked amongst both long time investors and beginners, that is, what is the best investment idea that will make you rich? Answer,,,there isn't one. If there was a magical formula that will make you rich, then everyone would do it. There is, however, an investment plan that could best fit you. Factors that would determine that range from how much money you have to invest, to, how much are you willing to trust others with your money. Also, when do you expect your return on investment?

There's roughly ten ways that would be best to invest. In no particular order, except alphabetical, I am going to begin with investing in annuity. That would refer to a continuous payment with a fixed annual amount. One type of annuity investment would be a life annuity, which is a contract for payments for a person's lifetime whether steady, or it can increase in percentage every year. The other popular type of annuity would be period certain, or guaranteed annuities. This would refer to a contract for payment over a period of time, usually one to twenty years.

The next way to invest would be to invest in bonds. In layman's terms, this would be to loan money, maybe to a company or bank. In this scenario, the issuer of the bond would be the borrower, and owe the debt to the lender, or bondholder. Interest from this can come semiannually, annually, or even monthly. Usually, the safest way to go about this would be to get a government bond. You simply purchase your bond and wait for it to mature.

Up next, we have certificate of deposit, or CD.This is similar to a savings account, but this cant be withdrawn until the term agreed upon is over.The only way to withdraw from this early is usually to pay a fee. One thing to keep in mind is that your CD can accumulate more money if left untouched for an additional term.

Another thing to invest in is commodities. This can be marketable items specifically for wants and needs, or goods and services. This could be anything from agriculture, to metals, usually precious like gold, or resources.

Exchange-traded funds, or ETFs would be next. Very similar to stocks, and are also traded on stock exchanges. ETFs hold assets such as bonds, commodities, or stocks. One way to invest in an ETF would be a SPDR, or spyder. This consists of a family of ETFs State Street Global Advisors. One thing that set ETFs apart from stocks is that ETFs can only be bought and sold by large broker dealers.

One of the more risky investments is Forex, but usually the more risky the investment, the higher the return on investment. Forex refers to the foreign exchange market, and it is the trading of currencies.You could either learn the market yourself or go the smarter way and pay for Forex signals. Forex signals are basically trade strategies provided by market analysts or experienced traders.

Next, would be investing in mutual funds. This is a pool of money from a group of investors to purchase securities. These securities could be debt securities, derivative securities, or equity securities. Also, your mutual fund could be unit investment trust, open end or closed end, so there's many options to choose from.

Real estate is another good way to invest. This would be investing in property, both the land, including the natural resources, and the buildings on it. You could participate in property flipping, which is the buying of properties and selling for a profit, or you could rent out property that you own.

Next would be investing in stocks. Stock is the equity stakes of owners in a corporation. There's mainly two good ways to go about this, buying directly from company or getting involved in a dividend investment plan. A dividend reinvestment plan is where, instead of buying and selling, dividends are reinvested into the company.

Lastly, many say the best investment idea is to invest in yourself. Whether you have a special talent or a business idea, if performed properly it could pay off. Hopefully, this article gave you insight on where to begin with your investment future...happy investing!

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