The reason why investing money is so attractive are infinite, but some are more restricting than others; some require you to manage them while others can be done from anywhere. Investing in a way that matches your current lifestyle, or that will allow you to have the lifestyle you want in so and so years, is a great way to narrow down your options and pick the investment that really suits you. And we’re here to help you go through these.
An investment in the property game, and more specifically in buy-to-let properties, is a seriously worthwhile investment. Essentially, what you are doing is having someone else pay your mortgage, and possibly a bit more, while you see your investment rise in value (unless the market crashes again that is). It’s a win-win. However, unless you have multiple properties and can afford to have a lettings agent manage it for you, it is not an investment that will let you life a jetset lifestyle, or camp out in the Caribbean all winter, and that is because it is a very hands-on investment. There will be time when you need to supply a new key to your tenant because they’ve locked themselves out. There will be calls that inform you that the boiler has broken, or the flat above has had a burst pipe and provided your property with an unwanted indoor swimming pool. Or it may be that you need to vet new tenants. Either way, it is a wise idea to stay close by. This isn’t all bad though, because it is an investment that will let you have the retirement you always dreamed of, and that can be worth it’s weight in gold.
The obvious benefit of this do-it-yourself style of investment is that you can do it from anywhere you so wish to, so long as there is an internet cafe somewhere nearby. The problem with this though is, well, you really need to have an eye for a good investment and know when to get your money out so that you can keep on living the lifestyle you’ve set your heart on. In terms of online trading sites, for American readers there is Scottrade, E-Trade, TradeKing and Motif that are all worth taking a peek at. (A UK based review of services is in the pipeline…)
Apart from the odd meeting, which can be done over the phone or even by email, you are simply trusted an expert or company to manage your wealth and invest your money wisely. There are thousands of experts out there that specialise in private equity investments, like Mr Colodne, which could see you establish the relationship you are looking for in order to live the lifestyle you want. Fancy living in rural France while your money is invested globally, then go for it. You won’t be limited by your investment strategy that’s for sure, and that’s because you’ll be able to discuss your investment strategy while on your mobile. Seems nice huh.
Why not invest in a savings account. Plan your next 5 to 10 years financially and commit to a figure that you will allow you to live the lifestyle you want to live, and be comfortable. It could be that you put as little as £300 away each month for 10 years. That would be £36,000 without including interest, which would be enough to support your lifestyle for a nice amount of time and, who knows, by then you may have found a way to consult remotely too.
Getting started is the most important thing and is the reason why I started Magical Penny in the first place – to inspire you to start saving and investing. Learn more by clicking the Investing and Saving categories