A financial investment has a degree of risk. A ten year treasury note has a current yield of less than two percent, and this type of long term investment can run the risk of inflation. There are other investment vehicles that provide a profitable rate of return, and these financial strategies are the following:
Tip One: Real Estate Ownership
Real estate assets have a long term intrinsic investment gain. Some types of leverage real estate can be purchased for their long term rate of return and for leveraging against further investment purchases. Further purchases are available by using bridge loans, for example. A bridge loan is used by real estate owners for short term cash flow until the house is sold, for example.
Tip Two: Rental Real Estate
Rental properties are profitable investment ventures. Selecting the right types of properties to rent and finding the marketable locations are the important factors in the rental real estate investment market. The modern renter tends to be selective and usually desires a rental property that is energy efficient, low maintenance, and smarter economically.
Tip Three: Business Ownership
An ownership stake in a popular business can bring in investment cash. Existing businesses with long histories of successful operations tend to be the more profitable. Companies that do not have a history of change and that produce every day products are more likely to continue to bring in share holder profits.
Tip Four: Business Purchase And Sale
Buying a distressed business in a distressed industry can provide long term gain. This type of scenario will need some investment cash added to the company infrastructure. The business will need some management repairs. The products and services produced are critical.
Tip Five: Capital Investments
Capital investments are important additions to any long term portfolio. Stocks and bonds with long term increasing yields are the more profitable. Retirement accounts usually have tax advantages that are more profitable than standard savings accounts.
Tip Six: Tangible Assets
Investment accounts can include certain tangible assets. Gold, silver, and other precious metals are often profitable when held for a number of years. These tangible purchases tend to be private and can be stored in banking institutions.
Profitable investments include selected real estate properties and rental real estate. Business ownership is frequently included in a successful long term portfolio. Capital investments and tangible assets are long term investments to consider as well.