It’s never too early — or too late — to start planning and saving for your family’s future. No matter what stage of life you’re in, you can take steps to ensure your loved ones are taken care of down the road. Here are a few tips for growing your family’s money safely and securely.
Joining Real Estate Syndication
Real estate syndication is a great way to get started in the world of investing. You can pool your money with other investors to buy larger, more expensive properties than you could on your own. For instance, you may not afford to purchase an apartment building to rent out. Still, you can make a small apartment investmentand, with your co-investors, purchase a building.
The syndicator will stand in for you even if you have no real estate experience. It will choose the property to invest in, develop it to become highly marketable, find tenants, and manage it. The syndicator then collects rent, deducts expenses and its cut, and distributes the remaining profit to investors.
That is why choosing a reputable syndicator you can trust is crucial. You must also ensure that the syndicator has the skills and the experience to make each project succeed. The company must know how to assess property value, how to enhance it within budget, how to attract the right tenants, and how to set the optimal rent.
This type of investing comes with some risks, but if you do your research and work with the right syndicator, it can be a great way to grow your wealth.
Opening CD Savings Accounts
If you’re looking for a low-risk way to grow your money, consider opening acertificate of deposit(CD) savings account. The bank that issues it pays you interest in exchange for holding a specified sum of money for a predetermined length of time, from six months to a year or five years. These accounts offer interest rates that are relatively high, so you can earn a decent return on your investment without taking on too much risk. In fact, it is one of the safest ways to save money.
You will receive the amount you initially invested and any interest when you redeem or cash in your CD. When purchased from a bank that is federally insured, a CD is covered up to $250,000 in a loss. That coverage includes all accounts you have at the bank under your name.
CDs have advantages and disadvantages, just like any investments. For instance, there is a chance that inflation will increase faster than your money over time, reducing your real earnings.
To protect yourself from other risks, ensure that the bank’s disclosure statement describes the CD’s interest rate and specifies whether it is fixed or variable. Additionally, it should specify whether the interest payment will be paid by check or an electronic transfer and how often the bank will pay interest on the CD, such as monthly or semi-annually. Both the maturity date and any penalties for early fund withdrawal should be made explicit.
Even while banks are the primary source for most CD purchases, several brokerage houses and freelance sellers also market CDs. By pledging to deliver a specific quantity of deposits to the institution, these people and organizations, sometimes known as CD brokers, are occasionally able to get a more attractive interest rate on a CD. The CD brokers then provide these to their clients.
To make sure the CD is from a respectable organization, thoroughly research the issuer or CD broker. No state or federal body has approved CD brokers, and they lack any kind of certification or licensing. Since anybody may declare themselves to be a CD broker, it is always advisable to find out if the deposit broker in question or the business they represent has a background of complaints or fraud.
A lot of deposit brokers have connections with financial experts. FINRA and the SEC both haveinternet databaseswhere you can look up someone’s disciplinary history. The securities authority in your state could have further details. Start by getting in touch with the consumer protection authorities in your state to inquire about the history of deposit brokers who are not connected to an investment company.
Invest Securely for Your Family
Investing can be a great way to grow your family’s money while minimizing risk. By opening a CD savings account, you can ensure that your investment is safe and protected. Additionally, by working with a reputable syndicator, you can invest in property and see your wealth grow over time. Remember to do your research before investing in any product or service and to always protect yourself from fraud.