Have you ever been left an inheritance and not known quite what to do with the money?
Your rich uncle, let’s call him ‘Edward’, recently passed away and left you a portion of his extended fortune.
Wanting to get the money into your hands quickly, you probably went online and searched for various website to help you to cut through all the red tape and lengthy wait.
The trouble is, you have no idea what to do with this money. Save it, spend it, invest it.
The options are there. Investing your money is probably the wisest decision you’ll ever make and any successful person will tell you the same thing.
The 7 Best Ways to Invest Your Inheritance
There are some great ways to invest your inheritance, however Investing money can be risky, and that possesses a slight problem if you’re not used to doing so. Which is what brought you to this article, right? You’re interested in learning how you can invest your money wisely.
Here are 7 of the best ways to invest your inheritance.
1. The Stock Market
Perhaps one of the most common ways to invest money is to sink it into the stock market. Although the stock market has a tendency to rise and fall with the economic trends, a savvy student of business trends can use this to their advantage to make a profit.
Watching the market go through the paces is key to making sure you are buying low and selling high to reap a good return on your investment.
This can be a risky way of investing your money. So only do so once you have a good understanding of the way the stock market works. I recommend checking out Timothy Sykes if you’re really interested in pursuing a future in trading.
2. The Foreign Exchange Market
Another way investors earn a profit, from the comfort of their own home, is by investing in the Foreign Exchange market. The idea is to pit one currency against another. As one currency goes up, the other inversely goes down.
Investing in the right direction, by studying currency exchange rates, can lead to a rapid increase in profits.
This market is also very news dependent, so a savvy currency trader must keep on top of major economic events. Major events typically indicate whether there will be a spike or a trough in a particular country’s currency.
3. Binary Options
The binary market is another market that operates similar to the Foreign Exchange market. The difference is that in binary trading, you are simply picking the direction the market will move. I
f you predict that the market will go up, then you play up. It is really that simple.
The catch is that once you are in, you will not be able to opt out of the trade if it turns against you for the duration of the trade. For this reason, a person really needs to study charts to be sure they have a good idea which direction a particular trading pair is heading.
Playing binaries is a great way to invest to become better at the Foreign Exchange market, which provides a bit more trading flexibility.
4. Invest in Yourself
While not an “investment” in the traditional sense, investing in college courses can lead to a better paying job and ultimately greater job satisfaction.
Not sure what career path you’d like to pursue?
It doesn’t even have to be college courses. The greatest ways to invest in yourself are by buying books to further your knowledge, smart clothes to make a killer impression on people, and investing in business ventures or materials that you need to pursue your dreams!
There are a number of free tools on the internet which will aid you in your decisions. One great resource is assessment.com. This valuable resource will help you find a career that meets your unique interests and talents.
One prevailing train of thought is that you’ll need 70% of your pre-retirement yearly salary to live comfortably. But if you plan to construct a new home, or jet set around the globe, you may actually need closer to 100% of your annual income.
The key to effective retirement planning is to be honest with yourself about the kind of the kind of lifestyle you plan on living during your retirement and determining how much it will cost.
Investing a portion of your inheritance in your retirement may not seem particularly exciting, but it will ensure your golden years are lived in a comfortable fashion.
6. Collectible Toys
It may not be obvious at first glance, but that collection of He-Man action figures your mom sold in your last garage sale was worth a mint.
In fact, many hard to find toys are worth money decades after the fact. Collectible toys increase in value because they become rarer over time. This makes collectible toys a fantastic asset class for savvy investors.
In many cases, toy collectors well outperform high end 401k retirement plans many times over. If you have an eye for collectible toys, this might be a great way to reap a lucrative return on your investment capital.
7. Fine Art
Rich investors know that fine art, such as priceless paintings, are another great investment vehicle for the savvy investor. Again, it’s something that you should probably seek the advice of experts before throwing cash at an invaluable slice of paint.
Sure, you may not have millions to sink in a famous classic painting, but there are many not so well known painters who fetch good returns on their paintings as well. As with any market, where collecting is involved, the idea is to take the time to do your homework.
Learning to distinguish between the real artistic pieces and the nonsense is what investing is all about.
Summing up this article on 7 of the best ways to invest your inheritance, hopefully this gives you a little more option as to what to do with your inheritance, or just large sums of money in general that you really don’t want to, or shouldn’t, spend.
To recap, you can invest your money in:
With a little forward thinking, a savvy investor will be able to turn a generous inheritance into a path towards meaningful profits.