Secure Investments That You Can Make

One of the deterrents of investing is how unstable the markets can seem. Many people are not willing to place their hard earned money in ventures that they are not even sure are going to succeed. The dismal state of the economy only proves the mistrust that many people view investment with. This fear of financing, however, can prevent many people from making a profit in the long run. There are, thankfully, methods to invest your money and limit the amount of risk that you face. Here are some of the ways you can invest with some measure of security:

Gold

Many investors advise people to begin buying gold. This is because, compared to many other commodities, this precious metal is actually stable. The value of gold has been quite consistent for many years. It is certainly a more established investment than currency. It also requires minimal risk. Once you have purchased a few ounces of gold, there is no immediate threat to your investment.

You can simply wait until you wish to sell the precious metal. When the prices are high enough, you can sell your amount of gold for a handsome profit. This type of investment ensures that there is no continued risk to your venture at all. As you have physical ownership of the commodity, you are entirely in control of what happens to it.

Savings Account

One of the advantages of a savings account is the liquidity that it offers. Few other investments or commodities can be accessed quite as easily as a savings account. Most banks allow you to withdraw a specific amount of money, at least six times a month. The more you have in your savings account, the more interest you earn. This is also a great method to encourage saving.

To make the best of a savings account, shop around for the highest interest rates on your savings. It is important to note the minimum required when opening the bank account. You should also check how much you are required to have in your bank account at the end of each month. To ensure that your income is truly safe, you should invest in a bank that is a part of the Canada Deposit Insurance Corporation (CDIC). Authorities such as these will insure the savings that you place in the account. This will allow you to protect your savings from unforeseen events.

Canada Premium Bond

The Canada Premium Bond (CPB) is guaranteed by the Canadian government. These bonds can be bought at most financial institutions throughout Canada. You can purchase one for as low as $100. Once you have bought a certain number of bonds, you will receive interest on this investment every year until the bond matures.

You can then redeem your original investment. This method offers you a great way to earn a little extra money, depending on how much you have invested. As this venture is guaranteed by a government entity, there is reduced risk.

Investment does not always have to be a gambling game. There are often times when you can remove the risk from the equation and make a stable investment.

 

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What is an Enhanced Annuity?

Are you nearing retirement? Have you been wondering what your options are? You might not know it, but there are many more options to your retirement than your retirement savings. Sure, this investment may have done you well for the past few years, but if you don’t want to constantly make withdrawals each month, you might be more interested in a plan that pays you automatically each month, just like the days when you were receiving a regular paycheck.

The Annuity

A regular annuity is typically set up when an investor has a lump sum of money, but would rather earn a small portion on those dollars with interest, as well as receive a monthly payment on a consistent basis. Normally, there are terms in place for each type of annuity (they can all be slightly different, depending on the institution offering the annuity) that will tell you how much you will receive each month, and how long your annuity payments will last. Depending on the amount you deposit and the amount you would like to receive each month, your monthly payments will change accordingly. Most often though, the common payback period is 20 years (based on my experience with various annuities).

The Enhanced Annuity

So let’s say your annuity is set to last for 20 years. It begins after your retirement date (typically), so you’re probably about 65 years old. What if you have a medical condition and you’re only expected to live for five more years? Then what good is a 20 year annuity? It would be foolish to invest your money this way! Why wouldn’t you instead look for a more short term annuity that would pay back a larger amount of money each month with a lower period for payback, say five years instead of 20?

Believe it or not, there is such a thing. It’s called an enhanced annuity. If you have high blood pressure, high cholesterol, type 2 diabetes, are underweight, overweight, or currently smoke, you may be eligible to reduce the term on your annuity and receive a higher income each month. If your condition is even more severe than these, then you might be eligible for enhanced annuities, which would offer an even higher level of income.

When you start shopping around for an annuity, you’ll most likely have to fill out some forms with medical information. Be sure to answer these questions honestly and accurately. If you do not, then you might only qualify for a longer term annuity, which could just go to waste if your life expectancy is much less.

I understand that you might be embarrassed to state various conditions on those forms, and it might be upsetting to think that you only have a few years to live on this earth, but think about it. If you’re in this situation, wouldn’t you much rather receive a larger sum of money each month and enjoy your life while you’re here on earth? I would!

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Investments & The Environment: Gold Mining

Gold Mining

With environmental policies and efforts becoming increasingly popular in many parts of the world, it se
ems that more people are slowly beginning to realize the necessity of protecting the Earth. However, not everybody knows how to do it. Most are familiar with some basic eco-friendly concepts – recycling, cutting back on fuel emissions, etc. – however, many do not realize just how much they can do to contribute to environmental efforts. For example, did you know that your choice of investments can directly impact environmental issues?

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