If you are like most people, you own a large number of assets. Some are performing well and some are languishing in mediocrity. If these assets aren’t generating you any money, it’s time to do something about them. To that end, have put together a list of the 9 best low-cost, high-reward assets you could use to steadily build your assets portfolio. Note that this list is not a recommendation, but merely a starting point for more research.
o Bonds. These are the riskiest assets you could own, yet yield the greatest potential for income. That said, they are also some of the riskiest assets you could own if you don’t know anything about bonds and how to properly invest in them. You must know that there is always a risk that the market will take a bad turn and your bond investments will go to waste. However, because people who buy bonds don’t understand their own financial situation, any bond security that offers an income stream that backs up its risk may be just what you’re looking for.
o Real Estate. These are some of the safest assets you could own. Yet real estate is a very risky investment. You are placing a lot of money in the hands of a stranger. Most real estate investment examples include rental properties, but could also include condo units or office buildings. Real estate examples include cars, boats, condominiums, planes and private planes, as well as other assets like artwork and other collectibles.
o Corporate bonds. These are another category of asset options that many people look at as a safe option. The truth is that these types of assets carry less risk than the ones highlighted above. One of the things to consider when comparing corporate bonds with other assets is the likelihood of a company going out of business. Many companies offer special limited liability partnerships that shield their owners from creditors if they are unable to continue paying the company. Examples include Treasury bonds and municipal bonds
o Bonds of higher interest rates. These can be some of the safest investments around. Bonds can help you diversify your portfolio by spreading your risk over more interest rate opportunities. Some of these bonds, like government bonds, are guaranteed to be the exact same value no matter what occurs in the market.
o Interested in stocks? These can be risky investments, but the returns can be great. Many people are willing to put their money in areas where returns aren’t guaranteed. If you are looking for ways to diversify your portfolio, consider buying stocks rather than bonds. They offer a little bit higher return than bonds, but don’t have as much risk associated with them.
o Real estate. Even though there are many risks involved when it comes to real estate, it is still one of the best investments you could put your money into. Many investors enjoy the passive, growth potential that real estate offers. You can also earn profits on homes and apartments that you own outright, although these are much harder to find and so they are not as widely used by most investors.
These are just five of the best income-generating assets you could choose. It is important that you understand your own personal needs before you choose which of these to invest in. In addition to your own goals, you should also consider how much risk you are willing to take. Some of these options may not be right for you depending on your lifestyle and financial goals. Knowing your own needs will help you find the best income-generating assets for you.
