10 Best High Return Investments in 2021

Key Takeaways


When investors seek out high-return investments, they know that risk is involved. This is especially true when the reward is promised within a short timeframe. As an investor, you’re gambling all of your invested money for the possibility of a lucrative reward. With so many investment options out there, it can be hard to decide where to put your money. In this guide, we’ll go over solid investment options that range from low to high risk. You can use this guide to find out what kind of investments sound good to you, and from there, you’ll get a better sense of what your risk tolerance is.

Low Risk High Return Investments

Let’s start with some low-risk, high-return investments. To be clear, your returns will pale in comparison to high-risk investments. However, making conservative, steady investments can help you earn a lot of money in the long-run. Many would argue making modest earnings at a steady pace is a much better strategy than possibly blowing all of your money in a high-stakes gamble.

  • Bonds

  • U.S. savings bonds are one of the lowest-risk investments available on the market. A savings bond is a security issued by the Treasury. You’re providing a loan to the government by purchasing the bond. The funds from bonds are used to fund government projects and operations. Savings bonds are one of the safest investment options available. You’ll be paid a fixed rate over a predetermined period. You’ll know exactly what you’re signing up for, how much you’ll be getting, over what length of time.

  • Savings Accounts

  • Do you have a checking account? Then, you might already have a savings account. If you don’t, go to your bank, and you’ll likely be able to open a savings account for free. Banks offer different types of savings accounts with varying interest rates. First, check what kind of rates your bank offers, and then compare them with other banks’ products. (Don’t forget to check online banks and not just your traditional brick-and-mortar banks.) By depositing money into your savings, you’ll earn interest for every dollar you tuck away. The nicest thing about savings accounts is that your money is liquid. This means that you can access it at any time, like cash. Of course, it’s best if you stash your money away and forget it, so that you can let it earn interest and grow over time.

  • Certificates of Deposit (CDs)

  • Certificates of Deposit, or CDs for short, are a great option if you want to get into the long-term investing game. You can acquire one of these through your bank. They operate pretty similarly to a savings account. The key difference between CDs and savings accounts is that your funds are illiquid. This means that you are not permitted to touch your funds for set periods of time. These predetermined time frames can range from several months to several years. In reward for your patience, you’ll receive a premium interest rate. If you know that you’re impulsive, locking your money away in a CD could be a great option for you.


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Low risk high return investments

Medium Risk High Return Investments

We just examined some investments that offer stable returns at some of the lowest possible risk levels. If these rates of return weren’t appetizing enough for you, then maybe it’s time to up the ante a bit. Here are four examples of investments with medium-level risk.

  • Dividend Stocks

  • Dividend stocks come from publicly-traded companies that pay dividends to their shareholders. When profits are earned, the company will pay its stockholders in either cash or reinvestment plans. Investing in dividends stocks can be risky if you’re inexperienced or don’t know what to look for. A great place to start is looking for a company with a long history of steady profits and financial stability.

  • REITs

  • Real Estate Investment Trusts, or REITs for short, own income-producing properties. These companies often manage the properties they own. The company typically has an investing arm and a property management arm. It’s a great way to invest in real estate without having to buy a brick-and-mortar property. REITs have an excellent reputation for offering above-average returns without exposing you to a lot of risk. You can research REITs that buy real estate in your area, and you can also search for ones that own specific classes of real estate, such as large multi-family complexes or commercial buildings. If your interest is piqued, learn more about REITs here.

  • Crowdfunding Real Estate

  • When investors pool their resources together to buy real estate, it’s called crowdfunding. Typically, crowdfunding opportunities pop up when a real estate investor or developer finds a great deal but need capital to help execute their plan. Investors can get involved in crowdfunding real estate without having a ton of money. In more recent years, crowdfunding platforms have helped connect investors with developers more efficiently than ever.

  • Corporate Bonds

  • Corporate bonds are known for providing predictable returns without you having to do any fancy footwork. Earlier, we talked about government-issued bonds. Corporate bonds operate very similarly; you are essentially lending money to companies so that they can fund investments and projects, such as expansions. Unlike dividend stocks, the company is legally bound to pay you. You are entitled to earning back your principal, plus interest. Corporations are more volatile than the government, so this type of investment is relatively riskier. However, you’ll earn a higher return. Just note that you’ll need a brokerage account to invest in corporate bonds.

High risk high return investments

High Risk High Return Investments

Last but not least, we’ve arrived at the part where we talk about the investments where you’ll get the biggest bang for your buck. However, nothing in life comes that easily. In exchange for the potentially high returns, you’re taking on a lot of risk. However, if you have the appetite for a gamble, high-risk investing could be your game.

  • Foreign Exchange

  • Foreign exchange, or Forex for short, is the act of trading currencies. Each country has its own currency. However, the power of that currency changes, relative to what you’re using to buy or sell that currency. Everyone unwittingly participates in a little bit of forex when they travel internationally. For example, the amount of Japanese Yen you can buy will be different based on whether you’re using Dollars or Pesos to buy the Yen. This is because Dollars and Pesos are valued differently relative to Yen. Forex traders can make a profit by buying and selling currencies using this knowledge. However, you can quickly find yourself making illegal moves. It’s best to go through a reputable, monitored trading platform like Forex.com.

  • Options

  • Options trading can be thought of as stock trading’s cousin. They are closely related but different nonetheless. In options trading, you agree to buy and sell stocks at predetermined prices and dates.

    Options contracts take a lot of guesswork. Before the trade even happens, you have to guess how the stock will behave. This is a great “get rich quick” scheme if you’re experienced or have a gifted pulse on the stock market. Generally speaking, options are extremely complicated and tricky. It’s best to leave this one to the seasoned investors.

  • Penny Stocks

  • Any stocks trading at $5 or less are called penny stocks. These shares belong to companies that have less-than-stellar financial histories. Investors buy up penny stocks when they want to have a large volume of shares of a company. Doing so creates a lot of risk, but they might be willing to do that if they think that the company will suddenly perform well. Investors have experienced winning big through penny stocks. Just make sure that you can tolerate a lot of volatility and risk before getting started.

How To Earn High Returns On Investment Properties

Everyone gets into real estate investing to make money. One could argue that buying real estate is one of the lowest-risk investment vehicles out there, for two reasons. First, real estate has generally appreciated in value over time. Second, you can control a lot of the outcome by conducting a lot of your own research and making wise decisions. Here are some strategies to follow to make sure you’re maximizing your returns on real estate investments:

  1. Gain More Real Estate Knowledge

  2. Ask The Experts

  3. Think Logically

  4. Use Real Estate Investment Tools

1. Gain More Real Estate Knowledge

Before you can start making smart investment decisions, you need a foundational knowledge of the real estate industry. You’ll want to spend time researching your local real estate market. In addition, you need to understand the factors that make a high return investment possible. There are many factors, ranging from financing strategies to exit strategies. As a beginner investor, it’s your job to educate yourself. The good news is that there are plenty of free resources that will teach you everything you need to know about real estate investing. These resources come in different shapes and sizes to fit your unique learning style. Whether you learn best from community forums or listening to podcasts, you can bet that there are resources out there for you. In this article, we’ve highlighted 43 such resources for you to explore.

2. Ask The Experts

After you start understanding the real estate market and industry, the next thing you want to do is get some experts on your side. Whether that comes from finding an experienced mentor or consulting a real estate investing forum, you should never shy away from asking for guidance. Real estate is a vast field, and it is ever-evolving. Don’t let your ego get in the way. Asking for help is a great way to get expert tips and network with other professionals. You never know when you’ll meet a mentor who’ll recognize your talent and want to go into a deal with you.

3. Think Logically

If you catch a whiff of a good deal, it’s easy to get excited and jump on the opportunity. It’s never a good idea to rush into a deal without crunching the numbers and running comps. Investors who let their emotions get the best of them will often get burned. In our Deal Analysis 101 Guide, we break this process into three key steps: gather financial data, run your financial analysis, make your investment decision. It takes practice, but it’s important to stay cool and calculated when something as important as your money is at stake.

4. Use Real Estate Investment Tools

As you start to get a solid grip on real estate investing, you’ll quickly realize that there is a lot to remember. In the step above, we mentioned that you’ll always want to run a deal analysis every time you come across an investment opportunity. This involves a lot of data, metrics, and formulas, which can get to be a lot. Efficient investors streamline their deal analysis by leveraging technology. Check out our piece on the top tools and apps that real estate investors use to their advantage.

Summary

We hope that you’re taking away with you the lesson that high-return investments are almost always high-risk. If you’re a beginner or intermediate level investor, sometimes it’s best to land somewhere in the middle. That’s why at FortuneBuilders, we love real estate. It’s offered great levels of return throughout history, and you can generally mitigate your risk by minding your due diligence. If you don’t have the means to purchase real estate right now, consider investing in real estate through REITs or crowdfunding.

Were you surprised to learn that it’s possible to invest in real estate without actually buying property? Are you interested in investing in real estate through REITs or crowdfunding? Let us know in the comments below!


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REITs & Stock Investing
REITs & Stock Investing
REITs & Stock Investing
REITs & Stock Investing
REITs & Stock Investing
REITs & Stock Investing