If you have money that you want to invest, whereby it is of no particular importance where that money came from, then you will need to establish in what kind of investment opportunity you would like to entrust your money. Do not forget that such investments are all risky, whereby not really gaining anything to your initial amount is the least of unfavourable outcomes. Giving your money to other people to invest requires trust, even more, it requires confidence that they will not simply squander your money, but return your investment with a healthy profit. After the hedge fund fiasco a couple of years back, the Lehmann Brothers going bankrupt and the Bernie Madoff scandal, such trust is nowadays simply not warranted.
People believe that stocks and bonds as well as securities are the best way to go. It is only warranted if you exactly know what you are doing. Did you know that there are guaranteed investment bonds, where you have a guarantee that at certain points you will have a certain amount, no matter what? Interestingly enough, some banks like Santander’s decided to take off the “guaranteed” moniker from such bonds – should be a warning sign.
Before the financial markets became so complicated, most people invested into property or other valuable items such as gold, silver and jewellery, precious stones and similar items. Unfortunately, such investment opportunities are very scarce nowadays and most of the time cannot be done by private citizen. Real estate is still such an investment possibility, which in long term always remains somewhat valuable, if properly taken care of.
The most unfortunate parts of all the investment opportunities are the taxes and fees that you have to pay for obtaining, maintaining, selling and owning any such thing. Even if you save money in your saving account, the dividend is most likely barely covering the inflation rate and additionally you will have to pay income taxes on all monies that surpass the initial investment. In a twisted way, you are actually losing money by having it in a savings account, because bank fees, low interest rates, taxes and inflation will slowly but surely make your money less worth than when you initially put it in.
Bottom line, there is not safe investments out there, at least not for the common man or woman. It is still the best move to purchase gold and stock it up in a safe deposit box, hoping that no thieves will rob the bank and get away with all your gold. On the other hand, investing your money into something or someone who or what will ultimately refund it in some way is also worth considering, like paying for your children’s’ education or purchasing your own home. Think about all the rent money that you will save. Other than that, currently it is very unwise to invest into any hedge funds, at least not until the market has verified its stability.