People used their hard earned money depending on their personal knowledge or tested experience on those chosen investment. Others are investing through different portfolio, like investing to stocks with 30% of their money, 30% to time deposits and 40% to real estate properties.
Putting your investment to different portfolios is a right idea to lower the risk on your investment. Personally, I would do the same strategy if I have enough money for those investment.
To tackle more about investment, the higher the return of investment the higher the risk always applies. The return on investment actually varies on how your investment works, for example there are times the stock market yielding to its highest then suddenly getting a its lowest with just one economic issue, timing is very important with this investment. To put it simple, stocks are very volatile type of investment.
Why would I invest the 40% of my money in real estate?
Because I want security for my family, my needs and my investment that only on real estate could give. I may purchase 20 units of townhouses for my rental business, may put up my own commercial complex or a fifth floor hotel restaurant. This kind of investment is tangible in its form, there is a constant appreciation of value and would give a daily cash flow.
Investment in real estate at a big part of your investment capital really the smart choice but there should be a thorough research and planning to gain the most return on your investment.
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