image-ad
Subscribe Now Join thousands of other Vintage Value readers today!

Make It Big! 12 High Yield Investments for the Adventurous Investor

High yield investments are one of the best ways to earn money.

Many people have the misconception that investing only consists of buying and selling stocks. There are a plethora of ways to invest, all with different benefits and processes. High yield investments are those that are designed to provide investors with a steady income over a period.

When you buy a house, you’re investing. The difference between buying a house and making a high yield investment is that the house won’t earn you a fixed income. Whether you’re new to investing or someone that wants to maximize their profits, you’ll need to start making profitable and secure investments.

Read on to learn about 12 high yield investments for anyone that wants to effectively earn money.

1. Peer-to-Peer Lending

Peer-to-peer lending (P2P lending) is one of the best investments for anyone looking to make short term gains. Rather than buying stocks in a company, P2P is all about lending money to others. This allows you to earn a profit over time because of the interest.

There isn’t a certain amount of money required to get involved in P2P, so you can start with little to nothing. Even if you only have $100, you can start loaning it. Many peer-to-peer lending sites allow you to start loaning, whether you want to facilitate personal or business loans.

2. Crowdfunded Real Estate

Investing in real estate is something many people are interested in because there’s a lot of room for profit. The problem that many people encounter is that they don’t want to be a landlord or they can’t afford the homes near them. In this case, you can start crowdfunding your real estate purchases.

Crowdfunding is a process that involves gathering money from other people to fund a project. For example, a developer could crowdfund money from investors and other developers to build an apartment complex. When the developer lists their crowdfunding project, anyone will be able to invest in it.

3. Treasury Inflation-Protected Securities

Bonds have been a popular form of investing for many years because they’re secure and reliable. Treasury inflation-protected securities (TIPS) are one of the best low-risk high, yield investments because they have fixed interest rates and protect themselves against inflation.

TIPS bonds come with a fixed rate that can’t be changed during the length of the bond. However, the value of your investment will grow with inflation. This means if inflation goes up 1% per year, your investment value will increase by 1%. You can invest in TIPS bonds by themselves or put your money into a mutual fund.

4. High Interest Savings Accounts

Anyone that’s looking to invest with high returns could benefit from a high interest savings account. These accounts are designed to allow people to earn a lot of money from interest for as long as money is deposited into the account.

When you open an account, the only thing you’ll need to do is deposit money. You’ll have a variety of options when choosing an account because each bank offers different rates. In most cases, you won’t have to face a minimum deposit and you can receive an APY of 1.7-1.8%.

5. Stocks and ETFs

Most people that are interested in investing go straight to stocks and ETFs. While these are secure investments, they can be difficult to understand if you haven’t had a lot of time to learn. The best thing you can do is invest in stocks and ETFs that have dividend payouts.

Dividend payouts are when companies pay their investors a portion of their earnings throughout the year. Some companies will pay dividends each quarter whereas others will pay annually. Try to find stocks that payout 3% in dividends. For anyone new to stocks, you’ll need to open a brokerage account.

6. Bank Bonuses

Not everyone can get involved in bank bonuses because they typically have many rules and require a lot of money. For example, a bank could offer a $200 bonus for opening an account with them, but they’ll require you to make an initial deposit of $10k.

You should look into bank bonuses if you have a lot of extra money because you’ll be required to keep it in the bank for some time. After you’ve made your other investments, you should start looking into these. Be sure to read everything relating to the bonus to avoid running into fees in the future.

7. Corporate Bonds

Corporate bonds are similar to U.S. Treasury bonds in that they’re secure and reliable, but they’re not related to the government in any way. Corporate bonds are strictly between corporations and investors, and it relies on the corporation to pay funds. They’ll typically use their assets as collateral for payments.

The best benefit of investing in corporate bonds is that you can expect to earn much more than you would with government bonds. Investing your money into a corporation comes with more risk, so you’ll make higher returns. Mutual funds and ETFs are used for bonds, so you’ll be invested in a variety of bonds.

8. Municipal Bonds

A municipal bond is another form of bond relating to the government as it’s designed as a way to allow the government to borrow money. Instead of using things like a credit card, the government will issue a municipal bond that’s exempt from federal income tax. 

Anyone looking to minimize how much of their money goes to taxes can invest with high returns in municipal bonds. Not only would you avoid income tax, but you’d have a secure borrower as it’s unlikely the government would default. The government has a variety of tools to get more money to pay back the bond.

9. Credit Card Rewards

The use of credit cards is often debated because many people use them and end up drowning in debt. They can be one of the best low-risk, high yield investments if you use them correctly. Most credit cards have a system that allows you to earn rewards from using them.

These rewards can be acquired by earning “points,” which are acquired from making purchases. It doesn’t matter what you purchase, you just need to buy things. The best way to do this is to make purchases and pay them off immediately. This will prevent you from paying interest and your credit score will go up fast.

10. Annuities

Annuities are something that many people are on the fence about because many financial advisors try to promote them to people that aren’t interested in them. Annuities are meant to be a tool for people to stabilize their portfolio after they’ve invested in several things.

What you can get out of an annuity is a guaranteed return, whether it’s a fixed or variable annuity. Annuities can be affected by the stock market, but they usually have protection in case the market is declining. The risk that comes with annuities is much lower than most investments because they’re backed by insurance companies.

11. US Savings Bonds

US Savings Bonds are also similar to TIPS bonds because they’re related to the government. What makes a US Savings Bond a good investment is the fact that it’s backed by the government and has little to no risk. These bonds come with fixed rates and adjust to inflation every 6 months.

The only downside to these bonds is that you run the risk of losing money if inflation goes down. When the inflation adjustment takes place, it will match the rate at which inflation is. So if inflation is negative, your total return can decrease.

12. Online Checking Account

Many international investors love opening online checking accounts because it makes investing in foreign corporations a lot easier. An online checking account is used just as any other bank is used, but all of your information can be accessed online. These accounts often come with reward systems similar to credit cards.

When looking for an account, you’ll want to find one that doesn’t limit you. Some checking accounts will require you to keep a minimum balance or make a certain number of deposits each month. Try to find something that doesn’t have these limitations and allows you to make frequent withdraws without hefty fees.

Get Involved with These High Yield Investments Today

Investing doesn’t have to be difficult, but many people make it hard for themselves when they don’t research. After reading this article, you now know a variety of high yield investments that will help you start earning money.

We encourage you to start by opening an online checking account, then look into bonds. They’re a great option for anyone that doesn’t want to monitor their investments each day. If you’re looking for some high risk, high return investments, you can start investing in stocks and ETFs.

Browse our articles to learn more about investing and finances.