Getting High Yield Investments With Your Money

Introduction. Volatile stock markets, insufficient bond yields, and low interest rates, are frustrating investors. Many investors are not sure just what to do with their portfolios.

The time value of money is based on the premise that an investor prefers to receive a payment of a fixed amount of money today, rather than an equal amount in the future, all else being equal. Considering that the cost of printing paper money is minimal, the federal government makes an enormous windfall profit whenever it places new bills in circulation and therefore tends to keep up this practice. This leads to inflation which erodes investors' returns. With today's interest rates and inflation, which is higher than reported by the CPI, investing may result in loss of buying power rather than a net increase. Under these circumstances you might wonder---What is the best thing to do with my money?

What is the definition of money? Money should be thought of as a tool to accomplish tasks and as a method of exchange. Money can't exist unless there are people to produce, and goods and services are produced. Most people don't think about what money is, they more likely are concerned with how much they currently have, and how to get more of it. Money can be stuffed in a mattress and in this state does nothing for the economy. Preferably it will be put to work to accomplish something and thereby earn a return for the investor.

Money In The Bank? For me real investing is putting your money to work, not handing it over to a bank to earn them profits in return for locking it away from you. Many savers could be missing out on higher interest payments because they have no idea what their money is earning or how their account compares with others. When your money is in a bank account or CD, it is not being used effectively and probably netting you a loss due to inflation. The best way to maximize the power of your money is to place it where it can do a lot of good work and return a high interest rate. As we discussed above, investing money is putting it to work for you instead of you having to work. Well, if the Bank is not such a good place for your money, what about Bonds?

Money In Bonds? Current bond rates are around 5% per year. After inflation, you are actually losing money when you put it into bonds. In other words, you tie your money up in bonds for a time and when you get it and the interest back the total has less buying power than when you started. Your money needs to be earning as much more than the real inflation rate as possible in order for you to be ahead. Well then, how about the Stock Market?

What if I put my money in the Stock Market? Current stock market volatility could drive you to drink. Lately the market has been up 300 one day and down 350 the next. This represents higher than usual risk when you put your capital in the stock market these days. If you are actively trading in the Stock Market the volatility may make you want to stay glued to the screen, you may experience higher than normal stress, and it can basically seem to control you. Other investment vehicles are less volatile reducing your need to watch them every day and to worry about your returns. Isn't there any good place to put your money to work?

How do you effectively put money to work? Wealthy people learn to put their money to work for them so they don't have to continue working. You can earn money every month -- profit, without you having to personally do extra work -- by putting your money to work for you. The truth is that when you invest, you are putting your money to workliterally. If you put your money to work you expect it to earn a good wage, a return. Prioritizing your money means putting your money to work in the most effective way, directing it into high-interest accounts. Well, just where do you find these accounts?

Factors are lining up which present opportunities for putting money to work at higher yields. Most people have heard of the current turmoil in the mortgage lending business. Turmoil breads opportunity, all you need is to know where to look. The problems in the mortgage industry have resulted in lending institutions tightening up their lending practices. Consequently, developers are willing to pay higher rates for less red tape; that is private money. For example, when a developer uses an investor's money he uses it to create valuable new real estate or increase the value of existing real estate. In the process he makes a good profit and wants to share some of that profit in the form of interest payments with his investors that provide the funds.

In summary: Your money is important and you should consider partnering with a company that treats your money and your return with importance. As a responsible user of your money, the developer can be constructive with it and improve his community. Loan funds administered by the developer allow investors to participate with the developer in community development for a defined period of time. In our company we put investor's money to work in community development in the city of Baltimore and we make sure our investors get an extremely good monthly return. An investor may place his money in our projects fund for extended periods so that he can plan on a high return for that entire period. Our investors typically ask us to roll their money over from one project to another thus providing a continuous return by re-using the funds for as long as he wishes. Our company usually has 10 to 15 re-habilitation projects going at the same time thus providing great new places for people to live while improving the neighborhood, and providing a high return for our partner investors. We offer a free prospectus so you can see what we do.

See Also

The Four Pillars Of Financial Intelligence

What is investment loan?

Top Tips in Keeping a Profitable Silver Investment

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