5. Real Estate
People tend to view investing in real estate as a high-risk venture. That’s fair enough. You must deal with tenants, handle repairs, manage payments, or learn by trial and error how to invest in real estate. However, there are low-risk options as well. As an example, you can purchase Real Estate Investment Trusts through ETFs.
The one option I’ve loved over the years because it’s easy, simple, and has returned good money to me is Fundrise. Fundrise is an online platform for crowdfunding Real Estate Investment Trusts. The Fundrise team takes care of your money while you sit back and watch it grow. In addition, Fundrise lets you start a well-diversified portfolio of commercial, condos, single-family homes, and multi-family properties for as little as $10.
4. High Yield Savings Account
As you may already know, a high-yield savings account is an insured savings account under the federal government. There is a higher interest rate on these accounts than the national average — which makes them appealing to many people.
Most of these accounts earn between 0.40% and 0.50% annual percentage yield. The annual percentage yield paid by some banks is between and based on aggregate account balances. In comparison, Bankrate’s June 7 survey of institutions shows an average yield of 0.25 percent APY for savings accounts.
A high-yield savings account doesn’t offer all that much excitement, but it does offer a significant rate. On top of that, you won’t need to put in any extra effort to increase your balance Besides, you can easily open an account online with Chime, Marcus, Alliant, Discover, or Varo.
As an example, let’s say you are able to open an account at 0.50% APY. With $10,000 in your account, you can earn around $50 per year. Even if you don’t make billions with this account, it’s much better than the five dollars you’d make with a 0.25% APY