Typically, successful individuals focus on one or two types of investments and ignore the plethora of other alternatives available. They often require a fair degree of expertise before venturing into a new area and can often be incredibly patient when doing so.

Image Credit

Some common types of investment include stocks, bonds, cash savings accounts, options trading, and cryptocurrency such as Bitcoin. Of course, there are many more, but these six represent the most popular for all walks of life across the world today (and probably tomorrow). It would be wise to let advisors like Fundamental Global Investors  guide you before making a decision. Some investments offer much higher returns than others, but each has its own unique drawbacks and demands. The following is a brief analysis of each.

Cash Savings Accounts 

Cash savings accounts are one of the safest investment options as they are insured by the Federal Deposit Insurance Corporation (FDIC) in the United States. The downside is that cash accounts offer low returns, typically around 0.01% – 0.05%.

Bonds 

Bonds are debt instruments where an investor loans money to a corporation or to the government in exchange for periodic interest payments and the return of their principal investment at maturity. Bonds can be a good investment option for conservative investors because they offer relatively low risk and stable returns when compared to other asset classes. The downside to bonds is that their returns can be lower than those offered by stocks and other investments over time.

Stocks

Stocks are in high demand because they offer the potential for high returns but also have an element of risk. Returns on stocks vary greatly depending on which stock you invest in. Some investors prefer to diversify their stock holdings, while others take concentrated positions in a small number of companies that they believe will outperform the market over time.

Options Trading

Options trading is where you make money by predicting whether or not a security’s price will move up or down within a given time period. The amount one can make using options varies based upon how much you pay for them and how accurate your prediction ends up being. If you are right, then options can be very lucrative; if not, then, unfortunately, there is no guarantee that you won’t lose your entire investment.

Cryptocurrency

Cryptocurrency has made headlines in recent years for its incredibly high returns and is considered by many to be the future of money. Its value fluctuates like any other asset, so one must be prepared for shaky starts followed by meteoric rises and falls in value. The price of crypto can change drastically within hours, days, or even weeks, so it’s not the kind of investment you would want to make if you are concerned about short-term volatility. On the flip side, returns average around 50% per annum, which means that an initial $100 investment could well turn into $1,000 within a year. If one had invested just $2,000, then they would have over $1 million in a year!

Conclusion

There are a variety of different investment options available to the successful person. It is important to do your research before investing and to be aware of the risks associated with each option. Having said that, if you invest in the right assets, then you can rest assured that your money will be working for you and will hopefully grow over time.