When it comes to investments, the most popular scare tactic for beginners is the fact that they have to work with another broker who will be the middle person.
Since they’re more knowledgeable than the beginners, there are plenty of horror stories about how these beginners got duped out of their hard- earned money by senior brokers.
However, even seasoned investors can face problems if they are working with a poor broker. To bypass this scenario, self-managed investments are also a viable option for those who are fearful about working with brokers or other middle managers.
If you’re looking to start to go this route, the following are the best self-managed investments that are perfect for beginners.
1. Trading of Precious Metals.
You don’t have to a stock market genius to be able to deal in precious metal stocks.
Gold and silver trading is fairly simple and straightforward, and its trends and fluctuations are independent of the traditional stock market. In fact, when stocks of traditional assets plummet, you might find that precious metals will actually increase.
The best part is that having half of your assets in precious metals can actually help to strengthen your portfolio and decrease the vulnerability faced by your other assets.
2. Rental Property.
Real estate is also touted as one of the best self-managed investments.
However, it is self-managed rental property in particular that is truly shines here. Many landlords are self-managers and function as their own property managers.
However, in some cases where it is not possible for them to manage everything, the help of a good property manager can also be availed.
3. Stores and Supermarkets.
Grocery stores are also very feasible, self-managed investments since a person but it is one that is subject to a lot of changes.
Starting one off can be extremely expensive and while it may not be at par with other popular chains such as WalMart, Target or 7-Eleven, it can still yield good profits in a short time period.
4. Start Ups.
Start-ups are also a feasible form of investment since it is a self-run business that is going to generate profits in the long run.
Once again, like stores or supermarkets, these can be rather difficult to start off. Start-up statistics also show that most start-ups are extremely vulnerable in their first year and do not yield a profit until their second year.
Even then, the first year is the most critical stage since the start-up faces more chances of being shut down.
5. Food Related Services.
Food related services have also become very popular and fairly inexpensive.
Mobile food trucks as well as home delivery of organically produced food items are some of the fastest growing businesses and yield profits very well.
Keep in mind that self-managing investments require a lot of time, research and energy and many people who self-manage usually can allot the time and energy required for this purpose. Moreover, while the risks associated with self-managed investments are high, the rewards are also rather substantial if you are careful in your dealings.