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Top 4 Investment Ideas for Small Investors

Investors are always on the lookout for good investment ideas, although it can be difficult for small investors to determine where they should invest their money. The best investments are those that have the lowest risk and that offer some sort of guarantee on return.

Nearly all investments carry some sort of risk with them, and when investing money, there is no real way to be sure that you will get the return that you are looking for. You can even lose money. Nonetheless, here are some good investment ideas that small investors should consider.

  • Real Estate.

The real estate market right now is still in a slump, but most experts agree – now is the time to buy. This is true for those who are looking to make the move into homeownership and true for folks who want to invest in real estate. With a large inventory of homes on the market, there is no shortage of investment opportunities. Look for short sales, foreclosures and other so-called “distressed” properties to maximize your opportunity for a return. Keep in mind that real estate investments may take a while to become profitable, but once the market is on the move again, you stand to make some good money.

  • Stocks.

Any list of good investment ideas would be remiss if it failed to mention stocks as a viable option for investors of all sizes. The stock market is nothing if not volatile, but stocks are still a good way to invest your money. Buying into stocks is affordable for everyone, and stocks allow you to diversify your investments.

  • T-Bonds.

Government bonds are usually thought to be one of the best and safest investments since they are backed by the full faith and credit of the government. Keep in mind that t-bonds have maturity rates of seven years or longer and usually offer a return of at least five percent. Treasury bonds are basically the government’s way of borrowing money from consumers and paying them interest for doing so.

  • Deposit Accounts.

Good investment ideas do not have to be risky. For the small investor who does not want to risk his investment dollars on any investment that may not pay off, there is always the bank deposit account. Savings accounts and certificates of deposit can be great for those who just want a safe place to invest their money while collecting a token amount of interest income.