1) Federal bonds. Very little return, but virtually no chance.
2) CD’s – This is certainly relatively safe option with rate of return depending on the institution. There are two key risks associated with this type of investment. First, you can tie your money for many years without access to the idea. Second, interest earned can be negated by inflation.
3)Mutual Funds – This investment are often very risky and very profitable, or relatively safe with the average return. There are different yield funds which buy stocks of different companies as per their risk/return objectives.
4) Stock market – Diversification is essential, not only in an overall portfolio, but also inside stocks you choose. It never hurts to revisit your risk/return tastes
5) Business Projects – These can be very lucrative investments, but they also carry high risk. Whether investing $1, 000, 000 and $10, 000 keeping your portfolio well diversified is a key to success.
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You’ve come into a bundle, or your stock dividends just repaid big. Now you’re wondering how to invest $1 million dollars and find maximum rewards. The answer is simple – diversifying. There are many reasons that diversifying your investments will reduce your risks and increase ones profits.
Firstly, if you invest in just a few different investment opportunities, you’ll have much less of a chance of seeing your entire portfolio disappear over night. No matter how much research you do, or how careful your planning, things happen. If you put your money into one opportunity plus it goes sour, you can see your capital diminished – or simply tapped. Not so for those who have many different investments. The high performing ones can help replace the ones that have done poorly.
Another reason diversifying is a great idea is because it gives you more flexibility. High risk opportunities may be incredibly tempting. While there’s a chance, sometimes a good an individual, that you won’t watch a return – if you carry out see one it’ll likely be huge. You would never want to invest your $1 million dollars into a venture like this. However, if you have various much safer investments, you can afford to take a risk here and there.
The last reason diversifying is such a smart idea is which it keeps your money going. If you invest within a stock or business venture there’s a chance you’re waiting months or years to view any return on your money. In the meantime, you’ll you need to be sitting around waiting to find what will happen. When you’ve learned ways to invest $1 million dollars through diversifying, different ventures are going to be paying off at different times.
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If you have $10, 000 or more to invest, many commission-based financial planners will explain how to invest for 2011 and where to invest. They make a commission and get a new client, so just why not? The generic recommendation for where to invest is often mutual funds proposed by the planner with most going to a connection fund and half to your diversified stock fund. The investment strategy offered is to call your planner when you have more money to shell out. What’s wrong with the following picture, and how if you happen to invest $10, 000?
How to Invest $1 Million Dollars - Tips From a Pro 