Tips on Investing Money When It’s Tight

Owning a business is exciting, but it can consume your cash, energy and time, before it enhances each of those. As long as your funds are tied up, investing in your future can be challenging. Fortunately, Americore can show you programs that improve your cash options and strengthen your investment opportunities. Meanwhile this article discusses ways to invest your money even when it’s tight. What follows are investments that can grow wealth regardless of whether you have limited or endless funds. 

Investing in Stocks or Bonds 

Stocks and bonds are a popular investment partly because you can invest a small or large amount of money in them. Consider investing a part of your funds this way. Stocks represent ownership in a company and can supply potential long-term growth and dividends. Bonds are debt instruments that pay interest over a specified period. Both stocks and bond investment options carry varying levels of risk. Be sure to talk to your Americore advisor and/or research and assess your risk tolerance before investing. 

Real Estate Investment  

Real estate can be a profitable long-term investment. You could consider investing in rental properties or real estate investment trusts (REITs) that generate income through rent or property value appreciation. Though this requires more liquid funds, most of the investment can be borrowed if you qualify. 

High-Yield Savings Account  

If you want to keep your funds readily accessible, consider opening a high-yield savings account. These accounts typically offer higher interest rates than traditional savings accounts. While the returns may not be as high as other investment options, they supply a safe and liquid way to earn some added interest. 

Certificate of Deposit (CD) Ladder  

If you have a portion of your funds that you can afford to lock away for a specific period, you can create a CD ladder. This involves dividing your funds into multiple CDs with staggered maturity dates. This strategy allows you to have regular access to your funds while taking advantage of higher interest rates offered by longer-term CDs. 

Business Expansion or Diversification  

Instead of seeking external investment opportunities, you could consider reinvesting your funds back into your own business. This could involve expanding your product or service offerings, entering new markets, or improving your operations. Growing your business means potentially increasing profits and generating a higher return on your investment. 

Remember, these options come with varying levels of risk and return. It’s important to note that these methods involve varying levels of risk, and the potential returns can fluctuate. It’s advisable to seek professional financial advice and carefully consider investment options based on personal circumstances, risk tolerance, and financial goals. It’s essential to conduct thorough research, assess your financial goals and risk tolerance, and potentially consult with a financial advisor before making any investment decisions 

Liquid Alternatives 

Liquid alternatives, also known as liquid alts, refer to mutual funds or exchange-traded funds (ETFs) that aim to provide investors with diversification and downside protection through exposure to alternative investment strategies. The term refers to any asset that is not a traditional long-only stock or bond. As beneficial as these investments can be, their one drawback is their lack of liquidity. 

 Liquid alternatives, on the other hand, try to bridge this gap by offering more accessible and tradable investment options in the alternative space. These investments offer daily liquidity, meaning they can be bought and sold daily, unlike traditional monthly or quarterly liquidity alternatives. 

Investors can access alternative investment strategies such as private equity, distressed debt, commodities, derivatives, real estate, and hedge funds without the high minimum investment requirements or income/net worth qualifications associated with traditional alternatives.  

Evaluate First 

It’s important for investors to carefully evaluate the risks and benefits of each type of investing method that interests them. First consult with an Americore advisor and consider your own investment goals and risk tolerance before jumping in. We can help you gain a deeper understanding of these investment vehicles and their suitability for your circumstances.