5 Short Term Investments With High Capital Gains
A settlement on your insurance claim has finally been reached. The settlement was not a significant enough amount to propel you into complete financial security but was sufficient enough to get you close. You are getting closer to an age where putting your money in a long-term, secure investment does not provide you with the return you need. So how can you take that settlement and invest it for a short period while you wait on other investments to mature?
One of the key questions you have to address before you invest any of the cash you have is: How much risk am I willing to take? Is this your whole nest egg or do you have enough in a secure long-term investment to provide a return to subsidize your social security? If you are provided with a basic income, you may be willing to take a more risky approach with this available cash. Investing in futures on oil, grains, or even currency can provide high returns, but the volatility of each of these markets is significant. The emotions of the traders can have an impact on the prices of these shares, providing opportunities for high returns of up to 193 percent, or equally high losses.
Investing in short-term real estate deals can provide a high return on your investment. If you are careful about the region, location, and quality of the home you purchase for resale, you can make a significant amount on the “flip” of a house. The risk in buying and selling real estate comes from market swings that are based on the economy. The same economy that causes owners to go into bankruptcy is the one you are betting on to provide you with buyers.
Lending through a structured peer to peer organization can be an option for high short term returns. Organizations like Lending Club provide you with opportunities to find borrowers who fit the criteria for the loan you are willing to offer. This type of loan has a higher rate of default, and many are unsecured, so the risk is fairly high. The result is that as a lender, you can receive a higher rate of return even as the borrower pays less of a rate for the loan.
If you are feeling like walking on the wild side, investing your money in venture capital loans can be an option for you. Business developers need start-up capital to begin operation, to cover initial costs, so they can begin to earn money. You loan the money at a relatively high rate of return and wait for them to succeed. You are typically sheltered from all decisions of the owner, so you have to be able to let go of the control of your investment and trust in the person or project they believe in. The percentages of new business failure are very high, but the returns on successful businesses can be astronomical.