According to past projections, personal financial wealth could increase at a CGAR of 7% between 2017 and 2022. As interest rates drop, people are looking to invest their money in assets to boost their net worth. In this article, we look at some of the valuable asset purchases you can make.
1. Investing in Stock and Equity
One of the valuable asset investments that have shown consistent long-term results is stocks. Stocks allow you to own equity in a business with the promise of returns. While the ROI is often low for the short-term, statistics show they can be profitable in the long run.
The benefit of owning stocks over starting a company is that shares are less involving. They do not require constant maintenance on your put to keep the business afloat. But you ought to be aware of their volatility before investing. The best strategy is to work on using stocks to increase your net worth in the long term.
2. Buying Bonds
Generally speaking, a bond refers to a loan given to a business or an organization. The borrower is to return the bond within a specified period. That means the lender ties the money to a term or repayment period.
Different types of bonds can serve as valuable asset purchases. There are corporate, government, and foreign bonds. They often have varying terms ranging from one year and up to thirty years.
3. Investing in Collector’s Item
Collecting antique items was popular in the past, but many enthusiasts today consider it a hobby. But that doesn’t mean you cannot turn them into valuable asset purchases. Many items have earned their owners a tidy sum at auctions.
One of the collectibles you can turn into an asset is coins. Depending on their value, marketability, and condition, you can store rare coins in a private vault to sell later.
Other items you can collect include:
- Comic books
- Board games
- Action figures
4. Homeownership to Increase Net Worth
Owning a home can be another form of a valuable asset purchase, depending on how you go about it. You can have a second home that can serve as a place to relax or a rental that can generate income. The income can help you pay off your mortgage while the house increases its value during that period.
However, owning rental property requires sound management daily. You’ll need to market the house to attract tenants. Routine maintenance of the property is essential to uphold its value and retain occupancy in the long term.
5. Real Estate Investment Trusts (REIT)
If you want to get into real estate but find property management too time-consuming, consider investment trusts. A REIT organization handles the properties on behalf of their clients and sends the generated income when it’s due.
REIT companies may vary, with some relying on crowdsourcing, while other trade stocks. Their benefit is in reducing maintenance work for property and asset managers. But they are as volatile as regular stocks and subject to the same level of volatility.
There are different types of assets you can purchase to boost your net worth. There is no sure investment that is guaranteed to accrue positive outcomes. So be sure to do your due diligence and consult an expert. At Global Trust Depository, we can help with valuable asset purchases, private asset storage, asset management services, among others. Call us today to enjoy our top-of-the-line services.