High Yield Investments
If you are looking for “high yield investments”, first of all you need to establish exactly what the phrase “high yield” represents for you. A money market deposit account (MMDA) that offers interest based on current money market interest rates, can yield up to 6%, which certainly out performs orthodox savings accounts. Other investors won’t be happy unless they receive returns of 10% to 12% on their investments. After you have decided what you ROI that you want to achieve, then you can match the investments that suit your requirements.
There are countless types of high yield investments that vary enormously. The trick is to find one that you feel comfortable with and that you can comprehend. When you first get under way with investing your money, you could start with treasury notes (government debt security with fixed interest rates), bonds (fixed-income securities) or mutual funds (a collection of stocks and bonds).
You might want to try trading commodities. You should gain knowledge about how this works before getting started because to some extent, it is a riskier high yield investment vehicle and you should understand your own aversion to risk.
Real estate is another investment that you could consider. It has yielded high yields in the past but it may have had its day for the time being due to the baby boomer generation “downsizing”, and also easy credit is no longer easy to come by.
Savings accounts that produce high returns are available, usually they are found in online banks. You can probably expect interest rates of 5% or so and they should be government backed accounts. This will give the investor extra security and should be considered a long term investment.
Managed forex accounts can generate huge returns. Once they were only available to investors with a million dollars to open an account, they are now open to anyone with as little as $10,000 dollars to invest. Returns can be from 4% per month to 20% per month and more.
Availability of your funds (liquidity) should be another thing to take into consideration. There is no point in tying them up in an investment property or a fixed long term account if you think that you might need the money for emergencies. You could end up paying large penalties just to withdraw your funds.
A good rule is to diversify your investments as much as you can. Spread the risks by putting some in long terms investments and keep some for high yield investments such as managed forex accounts.