The best investment for money



Contents

  • 1 Purchase and hold securities
  • 2 Investing in real estate
  • 3 Deferred tax accounts for retirement
  • 4 References

Purchase and hold securities

Investors often see that the best way to invest money is to choose the appropriate time (the time in the market) to purchase appropriate investment securities, by monitoring the financial market, and applying a strategy of purchasing and maintaining them for long periods, because the returns that an investor can obtain When sold after a long-term period, it may be very reasonable in relation to the fluctuations that occur from time to time and for short periods in the movement of the market, and this helps to reduce the costs of trading in it to a minimum, which increases the final net return of the investment portfolio as a whole, compared to other strategies such as (Market Timing) ). [1]

Investing in real estate

Real estate is one of the most important things that can be used to achieve profitable investments, it may result in large profits or huge losses, but if it is invested in a correct way it can be used immediately, provided that the initial capital is available, and profit can be achieved by establishing housing units. For example, if residential units containing 10 houses were built and were rented at a specific price for each of them, equivalent to $ 1,000 per month, then the revenue from them could be calculated, which equals $ 1,000 x 10 units = $ 10,000. [2]


Deferred tax accounts for retirement

This method is considered one of the best methods that suit investors from the youth category, as the money that is invested in the account grows annually with the growth of deferred taxes, and this method can be followed by subscribing to individual retirement accounts (IRAs), or participating in retirement accounts by the company In which a person works with a plan (401k), (403b), or (457), by investing an amount of the employee’s salary that he gets from work, and it is not possible to add and invest any other types of money owned to the retirement account, such as: inheritance , usually deduct the value of tax deferred from the amount invested when it is withdrawn in because it When the person of retirement from his job. [3]

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