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6 Intelligent Investing Ideas to Maximize Your Returns

6 Intelligent Investing Ideas to Maximize Your Returns

When you are looking to invest your money, then return on investment (ROI) is a term, you will frequently hear. The objective of investing is to maximize return on the money that you are spending.

People do not like to risk their money. They prefer to go for safe investments. But there is no way of knowing whether the investment is safe or not. One thing that can be done is to note the investment target. It will help in determining the risk that you can afford to take. Here are some of the standard options for safe investments that ensure high return rates.

1. Index funds:

It is considered wise to invest in Index in totality. Investing in an index is smart not just because of high returns but also because of the relative safety of the investment. The level of uncertainty is much less than the individual stocks. It prospers because it has a low collection beta and

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The level of uncertainty is much less than the individual stocks. It prospers because it has a low collection beta and high dividend paying stocks. It makes it an ideal combination of safety with the returns. It is also considered a more direct approach for booking aspirations, and it also limits the exposure to unexpected unstable moves.

2. ETF:

The risk proportion can be reduced or minimized by decreasing the unpredictability from the portfolio. AN Exchange Traded Fund or ETF provides that opportunity. It helps in reduction of risk when you are trying to capitalize on the brighter side of the stock market. As compared to the stocks, it is a better bet of maintaining the ratio of return. It especially helps when the potential of dispersion is narrow, and there is a possibility of any knowledge about an enhancement of the stock. It helps in enjoying the flexibility in trading just like the stocks. They are not like mutual funds, and you do not have to wait for closing of the market and an only base the transaction on a closing rate.

As compared to the stocks, it is a better bet of maintaining the ratio of return. It especially helps when the potential of dispersion is narrow, and there is a possibility of any knowledge about an enhancement of the stock. It helps in enjoying the flexibility in trading just like the stocks. They are not like mutual funds, and you do not have to wait for closing of the market and an only base the transaction on a closing rate.

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3. Certificates of deposits:

The certificates of deposits are also included in safe investment list. It has higher yields as compared to treasuries. You can produce benefit from the changing interest rates trends as well. You can spread out the maturity dates over a period of 3 to 5 years. In this way, not all of your money will be committed to a single rate of interest. If the interest rates increase over two to three years, then you can take advantage of that trend. You can use the pattern to maximize the return potential of your

In this way, not all of your money will be committed to a single rate of interest. If the interest rates increase over two to three years, then you can take advantage of that trend. You can use the pattern to maximize the return potential of your investment for business. It will make up for any possible losses. It will also get rid of any worries about the stagnation of investment at one particular rate.

4. Gold:

Gold has always been considered a safe investment. It is also expected to give high returns. Although the gold prices have gone down a little, they are still able to generate positive returns. There are so many cultures that link gold with high safety value. It is considered an ideal hedge against inflation. It increases the appeal of gold and it acts as a vital key to the investment portfolio. It is an excellent tool for cutting the unpredictability of the market to a large extent.

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There are so many cultures that link gold with high safety value. It is considered an ideal hedge against inflation. It increases the appeal of gold and it acts as a vital key to the investment portfolio. It is an excellent tool for cutting the unpredictability of the market to a large extent.

5. Collectables:

Hobbies and passions can also become safe and source of high generating interest. Collectibles such as paintings, coins, and other antiques are worth a lot of money. The value of these antiques increases with time. They can be auctioned or exhibited. They are a good source of generating income.

6. Bonds:

Debt is one of the most common tools of investment. It is a good option for those who are looking for safe and stable interest rates. The maturity rate of the bonds is less than three years. The return rate of this investment is among the best. The money should be invested in bonds after extensive research.

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Proper analysis of potential losses is essential before investing. Such careful and detailed study helps in minimizing the possible losses. There are various means of investments for a business. They should be monitored carefully so that the best one is chosen. Each genre should be studied in detail so that the risk is kept to a minimum.

Featured photo credit: ndtvimg.com via i.ndtvimg.com

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Last Updated on March 4, 2019

How to Use Credit Cards While Staying Out of Debt

How to Use Credit Cards While Staying Out of Debt

Many people will suggest that the best thing to do with your credit cards during these tough economic times is to cut them up with a pair of scissors. Indeed, if you are already in huge debt, you probably should stop using them and begin a payback strategy immediately. However, if you are not currently in trouble with your credit cards, there are wise ways to use them.

I happen to really love my credit cards so I will share with you my approach to how I use mine without getting into deep financial trouble.

Ever since about 1983 when I got my first Visa card, I continue to charge as many of my purchases as possible on credit. Everything from gas, groceries and monthly payments for services like my cable and home security monitoring are charged on credit. Despite my heavy usage, I have maintained the joy of never paying any interest fees at all on any of my credit cards.

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Here are some tips on how best to use your credit cards without falling into the trap of paying those nasty double-digit interest fees.

Do Not Treat Credit Cards as Your Funding Sources

Too many people treat their credit cards as funding sources for major purchases. Do not do this if you want to stay out of trouble. I use my credit cards as convenient financial instruments so I do not have to carry around much cash. In fact, I hate carrying cash, especially coins. When you buy things on credit, the purchases are clean and you will not get annoying coins back as change.

I do not rely on my Visa, MasterCard or American Express to fund any of my purchases, large or small. This brings me to my golden rule when it comes to whether I will pull out any of my credit cards either at a retail or online store.

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I never purchase anything with my credit cards if I do not have the actual cash on hand in my bank account.

If I really cannot pay for the item or service with cash that I already have at the bank, then I simply will not make the purchase. Remember, my credit cards are not used as funding sources. They are just convenient alternatives to actual cash in my pocket.

Make Sure to Always Pay Off Balances in Full Each Month

The next very important part of my overall strategy is to make absolutely sure that I pay the balances in full each and every month no matter how large they are. This should never be a problem if the cash has been budgeted for my purchases and secured in the bank. I have always paid my full balances each month ever since my very first credit card and this is why I never pay interest charges.

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Using Credit Cards with Rewards

Most of my credit cards are of the “no annual fees” type, including one MasterCard on a separate account I keep at home as a spare in case I lose my wallet or incur any fraudulent charges. However, I do use a main Visa card which does have an annual fee because all purchases on that card reward me with airline frequent flyer points. For me, the annual fee is worth it since I do travel and I get enough points to redeem many free flights.

You have to decide for yourself if you will charge enough purchases on credit each year without paying interest charges to warrant a credit card that rewards you with airline points (or other rewards). In my case, the answer is “yes” but that might not be the case for you.

I occasionally use a MasterCard or American Express card on small purchases just to keep those accounts active. Also, I have been to the odd retailer that accepted only a certain type of credit card, so I find that having one from each major company is quite handy. Aside from my main Visa card which earns the airline points, the rest of my cards are of the “no annual fees” variety.

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So this is how I use my credit cards without getting into any financial trouble with them. This strategy is recommended only if you are not in debt, of course. In fact, it is worth keeping in mind once you’re out of debt so that you can keep your credit cards active and treat them responsibly.

What are your credit card usage strategies? Let me know in the comments — I’d love to hear what methods you use.

Featured photo credit: Artem Bali via unsplash.com

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