Top 5 Ideas For Beginner Investors

Top 5 Ideas For Beginner Investors (image via Pexels)

The world of investment allows us to improve our finances, learn new skills and build up a diverse portfolio. Whether it’s investing in stocks or investing in a holiday home, every asset you have brings you that little bit closer to financial freedom. If you’re a beginner looking to start investing, take a look at these top ideas for newbies.

1 . Robo advisor platforms

A robo advisor is a digital platform which provides financial planning and the opportunity to make investments. The platform uses algorithms and collects data about your finances. Using the data, the robo advisor can make auto investments and provide advice. There are plenty of benefits to using a robo advisor, including security, portfolio management, low fees and customer service. One of the best things about a robo advisor is that you do not need to put in lots of money to get started.

2. Real estate options

Real estate is one of the most popular ways to start investing. You can choose to make money by either buy-to-let or property flipping. With a buy- to- let you purchase a property, rent it out and use this as a form of passive income. To save time on the admin and legalities, choose a property management service. Property flipping refers to buying a property, refurbishing it, and then selling it on for a higher price. Both property investment options are fine for beginners, but you’ve got to put in the time to learn about the property market.

3.Try investment apps

Investment apps are the perfect place for beginners to learn the ropes. Acorns is the leading investment app, it's inexpensive to make a start, and making small investments is simple. Acorn offers lots of detailed financial content, so it’s also a great place to learn new things. If you’re saving to retire, be sure to check out the ‘Acorns Later’ feature.

4. Invest in Balanced Funds

Balanced Funds are a type of mutual fund; they are made up of a money market, a stock and a bond. Each part exists within the same portfolio. A balanced fund is balanced between both equity and debt, and the goal is to grow the funds and generate an income. These types of funds are ideal for those who want safety, income and capital. With a balanced fund you invest across a variety of assets, combining low-risk and high-risk elements.

5. Social lending

Social lending allows investors to provide loans to other individuals. Sometimes this type of lending is referred to as ‘crowdlending’ or ‘peer-to-peer’. If you become a P2P lender, you’ll have the chance to create a portfolio using smaller loans. You will earn around 10% on each loan, and there are plenty of associated services, including Funding Circle and Prosper.

Investing is one of the best ways to secure your financial future and make more money. The problem is, debts can hold you back. If you’re looking to settle your debts and start investing, be sure to check out the DTSS program at www.dtss.us/programs.html.