Making money is great, but doing so through smart investments is even better. However, setting up a successful investment portfolio requires a lot of planning and time. Accumulating wealth for financial goals like funding your children’s college education or your retirement is a long-term achievement that involves saving and investing for a long time. If you are considering that path, you can explore these investment ideas.

1. Interest-Paying Bonds

As a bondholder, you will be lending money to the insurer with a promised interest after specified period lapses. Some bonds earn interest annually, while others are for shorter periods, like semi-annually or after a few months. You can buy bonds from the primary insurer or the secondary market. If you choose the latter option, the price might differ from the original cost. Take some time to consider the credit quality of an insurer and the maturity period. Bonds with long maturity periods have are likelier to have changing interest rates than those with shorter maturity time-frames.

2. Stocks

They represent ownership as an organization, and the shareholders invest because they believe that the company will grow and increase share price. Investing in stocks for the long term is a leading driver of wealth creation. Since stocks are paper investments, you don’t have to spend money on management costs. When choosing a company to invest in, consider the healthcare sector because it is very durable. For instance, you can buy a pharmacy, as it has the potential of generating double-digit profits in no time.

3. Target-Date Funds

If you don’t want to run a portfolio, this is a perfect option. The funds become more conservative with age, such that your portfolio is safest when you retire and need the money. Target-date funds change your investment from aggressive stocks to conventional bonds as you get closer to the target date. They are popular in most workplace 401(K) plans, but you can buy the funds outside these plans.

4. Establish A Side Business

With the high uncertainty of the job market, over 25 percent of the population opts to have side businesses. The numbers indicate that the field is accommodating enough for everyone to launch a side venture and that the practice is becoming more popular. An advantage of starting a side business is that you don’t need a lot of money. You may need only a few hundred dollars or a few thousand dollars. However, the income will pay you back in several folds.

5. Mutual Funds

The portfolio includes bonds, stocks, and other types of investments. Therefore, mutual funds provide a diversified investment that a professional investor manages. It could also be a passively managed index fund. Both small and large investors can channel their cash to a mutual fund, thus offering instant diversification. Actively managed mutual funds are becoming harder to justify, thanks to the influx of the index fund trend. Ensure you know the management of a mutual fund before investing in the portfolio.

6. Real Estate

Investing in real estate is a viable long-term goal. Although it requires a significant initial investment, the commissions are good, and you make high returns from holding it for a long time. Real estate can be an attractive portfolio because you can borrow money from the bank to build or buy an establishment and pay it back over time. If you want to earn money without working for someone, resulting in real estate is a good idea. Several tax laws also benefit property owners. Even though real estate is considered a passive investment, you might have to manage the property.

7. Invest In Yourself

There are two ways of doing this: Acquire skills or education to help you build a new career or acquire skills or education to help advance your career.

A significant reason for career stagnation is the lack of suitable qualifications, an essential certification, or necessary skill sets. You can get these qualifications by taking online classes, attending college, or participating in relevant programs within your industry. Irrespective of the route you take, you need to invest time and money. Eventually, it will get you a promotion or increase your earnings.

Investing in long-term plans is a great way to create wealth over time. Consider the seven ideas when building a successful investment portfolio. Remember to research before settling on a strategy.

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