Docstoc

101 Ways To Invest

Document Sample
101 Ways To Invest Powered By Docstoc
					                               1




According to www.vss2000.com, the term “investing” is defined
as:

The use of money for the purpose of making more money, to
gain income or increase capital, or both.

Anytime we spend money in hopes of earning more money in
the future, we are making an investment, regardless of its
source. Here’s 101 investing ideas that can make you money,
too.

Equities

1. Buy stocks and Hold them for the long run. It’s
important to remember that when you buy stock, you’re
buying a company as well.

2. Invest in Mutual Funds and Minimize management fees.
Funds with high management fees and load charges do
nothing but hurt your overall annual returns most of the time.
Compare the best brokerage firms and find the best funds that
suit your investing styles.

3. Trade ETFs like mutual funds, not stocks. ETFs serve as
a great alternative for investors who wish to invest in a mutual
fund matching security. Many ETFs track global indices and
                                2


markets, making it easier for the small guy to invest on limited
funds.

4. Stash cash in a bond for the future. Purchase a bond and
hold it until its maturity date, the day you can cash in the
bond’s full profit value. If you like buying stuff online (and who
doesn’t), you can earn savings bonds while you shop online.

5. Buy Commodities when you can predict future market
shortages. Investors who predicted the recent wheat
shortages, and the high rising costs of gold made a lot of
money.

6. Trade Foreign Exchanges (Forex Trading). There’s money
to be made in the forex market, but beware of the potential
pitfalls that take literally days to unfold. Currencies prices do
not behave like stocks or mutual funds.

7. Trade Stock Options. Stock option trading allows you to
purchase shares of a firm at a reduced rate, although stock
options usually expire within three months of purchase. This
is reserved for experienced short-term investors.

8. Choose the Best Bank CD Rate for certificate of
deposits. CDs are low-risk investments in banks, which in
turn pay you interest on your money investment. HSBC offers
high CD interest rates, along with Bank of America and
WaMu.

Investing in Collectibles

9. Collect High Value Sports Cards. You probably traded
them as a kid, and even used the cardboard to transform your
bike into a child-size motorcycle. Let’s just hope you didn’t
sacrifice a 1952 Topps Mickey Mantle RC for your first Harley.
In its worst condition possible (Graded PSA 1), the Bronx
Bomber’s first year card sold for $3,700 in December. You can
purchase sports cards at your local hobby shop, mall, or drug
store.
                               3


10. Amass a Winning Stamp Collection. Stamp collecting is
another cool way to relive your childhood and make some
money at the same time. eBay has a ton of stamp related
items on its page, and buyers can pick up some vintage stamp
collections really cheap. Remember the alleged $11,000 stamp
that surfaced on a letter….That could have been your stamp.

11. Collect Vintage Books. Preserving timeless classics from
Faulkner, Wright, or Twain in your bookcase will send the big
spenders heading to your doorstep. And you don’t have to
spend a lot. Garage Sales, Estate Sales, and Yard sales are
great places for finding undervalued vintage texts.

12. Cash In on Popular Toys. Every year, there’s a new hype
or buzz about the year’s most sought after toy. Kids across the
country sent their parents into the hellish gauntlet we all
know as shopping malls to search for toys and gifts.

Here’s how you beat the masses: buy highly collectible toys in
the beginning of the year, say around February, then flip them
on eBay for huge profits. I missed out on $2,500 because I was
too lazy to wait thirty minutes in line for a Sony PS3. They
sold for $600 on their release date, and were selling for $3,000
on eBay the very next day.

13. Start Clipping those coupons. Buy a coupon holder and
subscribe to local and national coupon agencies and/or
distributors to find the best coupons. Your local paper will
most likely provide coupon inserts as well. My favorite coupon
source, ValPak, offers hundreds of dollars in savings for no
charge.

14. Watch Antiques Roadshow and Shop for Antiques.
Antique collecting can be tricky, especially for the uninformed
buyer who has no idea of a true antique piece. Before you start
buying, invest your time and money to become an educated
buyer. Antiques Roadshow has tons of useful information, and
by viewing the pieces on TV, you’ll be able to spot out
counterfeit antiques with greater accuracy.
                               4


15. Buy a Single Family Home. It’s probably the most
important (and expensive) decision you’ll ever make in your
life. Make home ownership one of your top priorities and
consult with an honest, trustworthy lender and real estate
agent when you wish to start shopping for homes.

16. Rent out an apartment, house, or condominium.
Renting to others is a great investment to pursue as long as
you can manage the weight of purchasing another property.
Once you own the land, your tenants help you to pay the
mortgage while you retain all of the property’s equity and
value.

17. Purchase REIT Stocks and Funds. Real Estate
Investment Trusts sells like stocks on any major stock
exchange, expect REIT’s invest directly in real estate through
mortgages and/or properties. The current sellers market for
home buying will temporarily depress REITs, but expect them
to rally strong in the next 5 to 10 years as corporate building
and construction continues to soar.

18. Buy Vacant Lots and Revive Them. Vacant lots are a
huge income opportunity, if you pick up the property for cheap
and develop it into a profitable income business. Vacant lots
have turned into homes, mini-marts, salons, stores, etc.
Contact the owner of the plot, submit an offer, buy the plot,
then began to monetize your investment.

19. Purchase Mortgage-Backed Securities. MBS are bonds
that earn cash flow from a pool of mortgages. Investors are
paid monthly out the principal and interest from the pool of
mortgages, also know as a mortgage pass-through. Instead of
having to purchase real estate, investors can buy an undivided
portion of an MBS and receive the paid out principals and
interest as earnings.

20. Invest in a Real Estate Development Company. Local
development companies make big bucks when they land
building contracts. Since many of these developers are private
equity firms, we cannot buy stock in these companies over a
                               5


market exchange. Contact local developers and express your
interest in their business. Often these firms need investors, so
they may reciprocate sooner than you think.

21. Loan money on Prosper.com
22. Loan money to a friend.
23. Sell snacks out of your office or dorm room at lower prices
than the vending machines.
24. Buy an ad in the newspaper to promote your service or
product.
25. Buy products from wholesalers, and flip them on Yahoo!
auctions.
26. Start a blog, buy reliable hosting, and post ads on your
site.
27. Hire workers, and pay them to shovel snow or rake leaves
around the neighborhood.
28. Trade corn futures.
29. Buy a municipal bond.
30. Buy wireless internet for your apartment and charge next
door residents to use it.
31. Buy stocks over the OTC market, then hold them.
32. Get a raise by investing your time in an expressive
extracurricular project.
33. Purchase a pinball machine and strategically place it in a
high traffic arcade.
34. Earn money from a wash machine and/or dryer if your
apartment building lacks one.
35. Save your loose change and deposit it in a bank instead of
spending it.
36. Buy a cloth and soap, and host a car wash.
37. Work overtime, then save 100% of your overtime earnings.
38. Equip your computer with a reliable virus scan to fend off
viruses and hardware damage.
39. Skip your coffee break once a week, and deposit the money
in your savings account.
40. Buy water filters, instead of drinking bottled water.
41. Drink tea whenever you get the chance. It’s cheaper than
coffee.
42. Buy a personal finance tracker line MSN Money Deluxe or
                              6


Quicken.
43. Invest in mutual funds whose manager is well known and
revered.
44. Invest 25 cents of every dollar you spend.
45. Trade oil futures.
46. Trade Wheat futures.
47. Invest in high quality health care to protect your well
being.
48. Rent out your home to weekend travelers.
49. Plant a garden, and grow your own vegetables.
50. Make sure your employer participates in 401k matching
plans.
51. Buy Foreign ADRs (American Depository Receipts).
52. Buy a ticket, and visit the local museum. You’ll learn
something new and interesting.
53. Sell stocks short.
54. Buy stock options through your brokerage account.
55. Invest in a college education.
56. Invest in a graduate degree.
57. Invest in a doctoral degree.
58. Take a writing course, and further develop your prose.
59. Sponsor a local sports team, and display your company
logo on the team uniform.
60. Hire a SEO (search engine optimization) expert to improve
your site’s search engine rankings.
61. Start a business out of your home office.
62. Open a Roth IRA to prepare for your retirement.
63. Invest every dollar you don’t earn from your day job in
your investment account.
64. Get a notary license to stamp documents.
65. Get a top secret clearance to view secure government
documents. Your employer will be very impressed at your
clearance.
66. Apply for a real estate license, and become a real estate
agent.
67. Sell arts & crafts at flea markets on the weekends.
68. Buy arts & crafts from flea markets, and get them
appraised.
69. Borrow money from credit cards, then deposit the balance
                                7


in a high yielding savings account. Pay the credit balance in
full each month, and keep the difference.
70. Buy an abandoned home, fix it up, then sell it for profit.
71. Ride your bike on the weekends, then take the money you
save on gas and buy small cap stocks.
72. If you left college early, go back and finish up your degree.
73. Read countless books on investing and money
management.
74. Hire a professional money manager to control your assets.
75. Start an import-export business.
76. Take a referee/sports official’s course, and referee soccer
and basketball games on the weekends.
77. Buy stock market index funds.
78. Buy a pair of hair clippers, and charge $12 for a haircut.
79. Ladies, buy a set of female hair utensils, and charge a hair
styling fee.
80. Renovate your home to increase its resale value.
81. Start a trust fund for your children.
82. Build upon your greatest passion, and start a foundation
or fund.
83. Buy foreclosed homes, and resell them to willing buyers.
84. Purchase a commercial building, and rent the space out to
businesses.
85. Raise chickens on a farm, and harvest the eggs.
86. Sponsor a high school student’s college education. They
will thank you graciously after graduation.
87. Be munificent. Donate to public foundations and non-
profit organizations. Those who give receive the most in return.
88. Contribute articles to major news sources. They may offer
you a job.
89. Manage a colleague’s finances for a small fee.
90. Invest in nanotechnology.
91. Design t-shirts and gifts at Cafepress, then sell them for
profits.
92. Invest in water.
93. Invest in corn futures.
94. Sign up for the Fidelity Investments Visa Rewards card to
earn 1.5% cash back. Fidelity deposits the money directly into
your investment account.
                              8


95. Sign up for the ShareBuilder Platinum Rewards Card to
earn 1% cash back into your investment account.
96. Max out your 401(k) and Roth IRA contributions annually.
97. Write down a list of reasons why you deserve a raise, then
present them to your boss.
98. Invest in a marriage.
99. Invest in long lasting friendship.
100. Buy whatever Warren Buffett invests in.
101. Invest in your financial independence by reviewing this
list and creating your own!

				
DOCUMENT INFO
Shared By:
Stats:
views:60
posted:2/13/2010
language:English
pages:8