Risk-Averse Investors

Risk-Averse Investors Love These Strategies

While finance-savvy households understand the importance of investments in their path toward budget stability and wealth, not everyone is brave enough to engage in high-profit investment operations.

Indeed, your investment portfolio profitability is proportional to the level of risks you are comfortable taking. Unfortunately, high risks are not just synonymous with high profits. They can also lead to devastating losses. As a result, households who are keen to maximize their income are nervous about dipping their toes into the world of investment strategies.

However, you can find a healthy balance between return and risk that can meet the requirements of the most risk-averse households. Here’s how to boost your income while keeping the threat of loss to a minimum. 

The Real Estate Offers Excellent Passive Returns

Amateur investors are naturally attracted to real estate investment strategies as they present a unique physical advantage. Indeed, physical assets you can see and touch creates an accessible and matter-of-fact management strategy. For someone who is building a financial portfolio, maximizing the value of a property is significantly easier than trading stocks on the market.

Rentals are a regular source of income for landlords. While profits may not be huge every month, the prospect of long-term extra income can radically transform your household. Alternatively, house-flipping is a fundamentally different real estate investment strategy, which consists of renovating and selling a property in a matter of months to boost profits. However, new investors are especially vulnerable to costly flipping mistakes. 

However, there are a ton of companies that give you the ability to invest in commercial and residential real estate projects without having actually to do any of the heavy lifting yourself.

One example is DiversyFund. It’s a private REIT (real estate investment trust) that allows you to invest in professional real estate projects passively for as little as $500. The thing I love about companies like DiversyFund is that they don’t make money unless the investors make money since they invest and manage the projects themselves. – Ladders

The Ultimate Cryptocurrency Experience 

Cryptocurrencies have hit the investment market by storm, encouraging global trading exchanges without the worries typically associated with dealing with multiple currencies. As a result, experienced investors have utilized the potential of the crypto market to build financial portfolios. However, cryptocurrencies sit at the other end of the investment spectrum, compared to the reassuring physicality of real estate. Amateur investors would be ill-advised to start a crypto portfolio without experience.

Nevertheless, more and smarter tools are trying to make sense of the market – you can read this Cryptovibes review on Bitcoin Revolution to find out more about one of the favorite crypto tools. Indeed, for new investors, relying on a solution that can monitor the market and trade on your behalf can be the best way of keeping risks low and profits high. 

Savings Accounts

You don’t need to take an active part in your portfolio management to watch it grow. If you are not in a rush to build a profit, opening a savings account with high interests can prove just as effective strategy. With 2% interest, Marcus by Goldman Sachs is a reliable profit for beginners. 

Lend Your Money and Watch it Grow

Last but not least, many new investors believe they need a minimum of $1,000 to start with their portfolio. Consequently, households are likely to approach their first investment strategy with significant capital. You can rapidly maximize wealth through peer-to-peer lending opportunities. Indeed, P2P businesses guarantee high returns for your investments. 

Hitting the right balance of risk and profit is a delicate art to master. For new investors who lack financial know-how, gains can seem low in traditional investment strategies. However, you can boost your chances while keeping risks to a minimum with smart tips and tricks. 

Bonus: Stock Market Correction

For the past several years the markets have made everyone look good, economists, money personalities on TV, politicians, and even us lowly personal finance bloggers.

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We’ve all felt pretty good about ourselves as each month we reached new highs on our net worth updates. We congratulate each other on our winning strategies. With each uptick in the market, we inched closer to achieving our blog’s mission, and finally writing that post declaring our Financial Independence.

Well, like all good parties, this one is going to end. What goes up must come down and this bull market we’ve been riding for the past 9 years is going to turn bearish.

Maybe it already has or maybe it won’t for another 9 years. I don’t know when I just know it will. And when it does, there are a few certainties:

  • Talking heads on TV will work themselves into a lather and tell us that the sky is falling.
  • A certain segment of the population will react to this fear-mongering and take money out of the market.
  • Those individuals will lose money.

How do I know this? Because it happens with every market downturn. I’ve been alive for 4 of the 11 historic bear markets and an investor for 2 of them.

Something must be done. And for the first time, I have a platform (albeit a very small platform) to do something about it. And do something I will.

The mission is simple, create entertaining and informative content with the sole purpose of helping people make wise decisions when we do inevitably encounter a bear market.

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What to Expect

About the Author

Michael launched Your Money Geek to make personal finance fun. He has worked in personal finance for over 20 years, helping families reduce taxes, increase their income, and save for retirement. Michael is passionate about personal finance, side hustles, and all things geeky.

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