Investing is important to funding your retirement and for any long term plans. Usually you invest in low risk funds that pay out modest dividends over time that are safe and reliable.
Yet, there are times when you need money quickly and want your money to be what makes you that cash that you need right away. In other words, you should have some investments tied to your retirement and are safe and long term assets, while others should be able to give you a decent, albeit smaller, return for the short term so you can fund a project or get out of debt.
The problem is that buying savings bonds and putting money in a one or two year CD account no longer pays much. In some cases you are getting 0% from the bank for a savings account and when you think of the fees that you pay you realize that you are paying the bank to hold your money.
In this article, I will help you understand the best way to invest when you want to make some fast money and don’t want to wait twenty years to make a return.
ETFs
A lot of people are intimidated by buying stocks on their own. And it is understandable since there is a risk that you can lose money so it’s natural to want to pay a broker. The problem is that their fees are very high and if you need short term money then you don’t want to part with any of it.
ETFs (exchange-traded funds) are a great way to go about doing it yourself to save big on broker’s fees. Just find your own personal best Canadian trading platform and go from there. Then you can usually expect to have better returns than other funds like an index fund or other mutual funds tied to the S & P 500.
Of course, there is also a higher risk when it comes to ETFs than with index funds that pay out lower dividends but also carry lower risk. If you can afford to lose the money then go ahead and get started trading. But, you are not likely to lose it all even if there is a dip in the market. If you can hold on for a couple of years, for instance, then there is a good chance you will see some nice returns.
Cryptocurrency
Cryptocurrency like Bitcoin has the reputation as being volatile. This is partly true but when you look at the value of Bitcoin over the last five years, you will be astonished at how much more valuable it is now in that short amount of time.
And this includes when it crashed in 2018 and lost more than half its value virtually overnight. Those that stuck with it and didn’t cash out for a loss saw their investments rebound and are enjoying insane gains.
With that said, there is still some volatility. It can be a bit risky to invest in cryptocurrency. However, it is this volatility that actually makes it an ideal way to make short term money. The old adage about buying low and selling high has never been truer than when it comes to cryptocurrency trading.
You can generally wait for a dip and then buy up some coins in a hurry. Hold onto them until things turn around and sell at a tidy profit. The best part is that the fees are very low. There are many people that are investing with long term strategies with cryptocurrency, but most people are looking at short term gains so you are not alone there.
Peer to peer lending
People needing quick loans and don’t want to deal with a bank are turning to peer to peer lending. This is great news for investors because many people getting these loans don’t usually need them for more than a year or two. In many cases they are only looking for loans of a few months to get through a tough time.
As a lender you can pick and choose who to lend the money to. Borrowers who are high risk will have to pay a high interest rate so you could take a risk and see some nice returns from that type of borrower.
Or, you can play it safer and choose the loans that are lower risk and for the term that works best for you and when you need to be paid back with interest. There is a risk no matter what type of borrower you decide to lend to however. So, realize that your loans are not guaranteed by the FDIC or any other type of insurance.
Real estate
This is a great time to buy an investment property as the rates to borrow are so incredibly low. You can buy a house with low money down and a low interest rate and then watch the house rise in value.
These days the property values of homes are on the rise so in two or three years you can often see tens of thousands of dollars in profit if you sell at the right time. Not only that, but you can rent out the house while you wait for it to increase in value and be making money in the meantime. Even doing an Airbnb in the right area can end up making you as much as a full time income.
Usually, people buy homes to flip after a while and are waiting at least five years. You can see better return potentially if you do the same but will see some profit if you can’t wait that long.
Conclusion
Hopefully you are not a risk averse person or you won’t see the kind of returns you may need to have because you play it safe. For those that like to take risks, you can see some really nice income by doing short term investing. In some cases you don’t even need much money to get started.
Hi there! I’m Sethu, your go-to guy for all things tech, travel, internet, movies, and business tips. I love sharing insights and stories that make life more interesting. Let’s explore the world together, one article at a time!
