A carbon investment is a great way to start earning a return on the money you have invested without taking a huge risk. Currently traditional investments are at a standstill, no matter how much you seem to invest the return you are earning is minimal.
Not only is the carbon market growing fast it is also outperforming all of the other investments in the traditional market.
What It Entails?
In order to invest in carbon investors acquire what is called a carbon credit. A carbon credit1 is categorized as tangible assets due to the fact that they are fully tradable in the form of a certificate or permit. In order for a business or an individual to be able to emit greenhouses gases into the air, such as carbon dioxide, they must purchase a carbon credit. Each credit allows them to emit up to one metric ton.
Investing in carbon credits is a smart move for investors who are looking for a high return because of how in demand they are. In some countries, companies are only allowed to emit only certain amount of metric tons of greenhouse gases, which are determined by the nature of the business. Once they have reached this number they must purchase extra carbon credits or make changes to reduce their carbon output. Investors who already own the credits can sell them to these big companies earning a handsome return in the process.
Understanding The Carbon Tax
The carbon tax, also known in Australia as the Carbon Farming Initiative, passed the Lower House in October 2011 and in November 2011 the Upper House passed the bill. What the bill is designed to do is target the top 500 polluters in the country in an attempt to have them improve their technology and in the process reduce their carbon footprint. Starting July 1, 2012 a flat rate was to be charged but by July 1, 2015, the carbon tax will have switched to a cap-and-trade emissions trading scheme.
Where Is A Great Carbon Investment Opportunity?
One of the best places to make your investment is the Gola rainforest, which is located in Sierra Leone. The Gola rainforest is home to several endangered animals, as well as a variety of plant life. One of the most important jobs of the rainforest is to clean the air from all of the pollutants, but it also helps purify the water supply for 500 villages that are located nearby. While the initial idea of this project was to prevent people from cutting down the rainforest, and so far, several mining licenses have been pulled, but the project has also helped Sierra Leone start to grow. It is estimated that these investments will bring in around $1 million in revenue each year.
If you are seriously considering carbon investment, you must act now, as there is a limited supply. Until July 1, 2012, the price of the Australian Carbon Credits is fixed at $23 for each investor, but once that date passes, the price can go up.
You can contact us and speak to our financial adviser if you would like more information on how to invest in carbon.
Foreign Currency Investment
Foreign currency investment has been the hedge over the uncertainty of economic stability across the globe. Economic crises do not only happen in third world countries. The fact is that, they can happen to all the countries all over the world. These economic conditions make a country’s local currency volatile to value changes. Hence, focusing on local currency investments alone is deemed impractical these days.
In the past engaging in foreign currency investment was only accessible to multi-national companies and investors who were already well-established and financed. However, as years progressed, regular investors have been given the chance to participate in foreign currency investments due to the advent of unstable economic status in several countries.
Reasons Why Investors Engage In Foreign Currency Investment
Foreign currency investment allows the investors to secure their hard earned assets. This is perhaps one of the common reasons why investors engage in such investments. Foreign exchange gives you the opportunity to select the currency you perceive that will bring you more profit over time. Hence, the risk of losing your money is low as you can also allocate those risks to various countries across the globe wherein you see will have favourable economic conditions in the future.
One of the reasons why foreign currency investment has become attractive to investors is that currencies among countries are relative to each other. Unlike stocks in the stock market which move independently, foreign currencies relatively affect one another. This means that the rise in the currency value of one country is also the fall of the currency value for another country. With this, when the investors look into the foreign exchange market, they can easily see where to invest their money when one country is experiencing a drop in the value of their currency.
Fairness is also a reason why investors prefer to invest in foreign currency. Try to observe the stock market. You will realize that there are insiders who eventually get the favourable side in the movements of stock without having too much effort in it. However, in the foreign exchange market, everyone gets their fair share of the field.2 This is because the changes in the currency values cannot be manipulated by anyone. The changes happen due to economic conditions of countries. Hence, investors have the chance to analyse the situation on their own and invest in countries which they think they will earn more.
Things To Consider Before You Engage In Foreign Currency Investment
The benefits of foreign currency investment should not make you overlook the things you need to consider before entering in such investment opportunity. First of all, you must fully understand the market environment before you take an action. If you do not have enough ability and experience to do it, you need to consult a broker that understands the business more than you do. There are several professionals who trade in the currency market. Thus, you must also seek to level with them and trade your currency and earn desirable results.
You can also contact us and speak to our financial adviser regarding any question you may have about foreign currency investment.
High Return Investments
High return investments are considered a non-traditional investment, but many investors find them to be well worth it. One thing to keep in mind with this style of investment is that they are considered to be high risk, but that is how investors can receive such a high return. Here is a look at some of the investments that are worth the risk.
Tanker Stocks Provide Investors With High Return Investments
While the price of oil plays a small part in a tanker’s profitability, the main money maker is the worldwide demand for the cargo. With China and other countries drastically increasing their demand and other countries, like the US, not cutting down on their consumption more tankers have to be used to ship the oil to where it is needed, which increases the number of charter fees being paid. Not to mention the profits certain tanker companies are making have increased due to the new rules requiring the ships to be double-hulled.
Royalty Trusts Offer High Yields
Royalty trusts3 are usually natural resource based, mainly natural gas or oil wells, where the trusts own the mineral rights to the wells. Royalty trusts are most commonly found in the US, especially since 2011 when the Canadian law changed the way royalty trusts were taxed. What allows these trusts to stand out is that they are not taxed instead the profits are paid as dividends to their shareholders. Each individual person must pay taxes on these dividends as their own personal income. One thing to watch out for with royalty trusts is as the resource dries up so does the money and the trust will eventually dissolve, unless the law allows them to be run as a business.
High Return Investments In The Form of Corporate Bonds
Corporate bonds offer a higher return than municipal and government bonds because of the higher risk. No matter what happens with a government or municipal bond the person holding the bond is guaranteed a specific amount. With corporate bonds, the investor takes on the risk of the financial health of the corporation, if the corporation is in financial trouble investors can lose it all. Other features of corporate bonds include having a $1,000 par value and are traded on all of the major exchanges.
Closed-End Funds Offer High Returns
Closed-end funds differ from open-end ones by the way an investor can obtain shares. With close-end funds, only a specific number of shares are available and once the fund has gone public, the only way to obtain shares is by buying them from another investor. An open-end fund simply creates new shares as needed. Another feature of close-end funds is that none of the shares can be cashed in until the fund has liquidated.
While anybody can invest in high return investments that does not mean it is the right choice. If you have any questions about whether they are right for you contact a reputable financial adviser.
Low Risk Investments
In the world of finance, there is no such thing as risk-free investments. However, there are a number of low risk investments that you can invest in. Investors need to make the choice between their desire to safeguard their assets and their purpose to earn higher profit in their investment.
Yet, no one can serve two masters at one time. This means that in the world of financing, you cannot have both the total safety of your investment and the high return from such investment. Perhaps, there are those that offer guarantee to the instrument you use in investing, but yield lower interest rates. There are also others that enables you to earn high profit, but do not guarantee the total safety of your investment. The dilemma lies on the decision of the investor on where to invest their valuable assets. With this, low risk investments are the best options for conservative investors who are not willing to take any chances of losing their money.
Getting To Know The Low Risk Investments Options
Preferred stock is one of the good options an investor can consider when it comes to low risk investments. It is a type of hybrid security that can be traded in the market like a stock and at the same time have characteristics like that of a bond.
Preferred stock has less risks in its liquidity in such a way that the holder can sell it at any time without the need to pay for penalties. Mostly, offerings of preferred stocks pay dividends monthly or in some cases, quarterly. The gains an investor earns from the investment can be treated as capital gains.
Fixed annuities are also among those low risk investments options that an investor has. They are most of the time best applied to conservative investors who want to earn high profit while sustaining the safety of their investment. What makes fixed annuities unique among others is that it enables the investor to put away whatever amount of money as a deferral from tax so long as it is still not time for the annuity to retire. Its safety is due to the strength backed up by insurance companies and reimbursements from other authorities.
Another option for low risk investments are the utility stocks. This type of stock remains stable over time with respect to its price and the dividends it pays, although its price per share is not as stable as that of preferred stock. As its name utility suggests, it is considered as a non-cyclical stock. Simply stated, it is not affected by changes in the economic conditions of a country since it is still needed by many whether the economy is at its best or at its worst.
Benefits Of Knowing Low Risk Investment Options
Knowing the categories that investors may land on when it comes to low risk investments will enhance decision-making skills on making investments that is appropriate for the current financial situation. Having different low risk investment options gives the investors the opportunity to choose the best investment scheme that can cater to their needs for high return and asset safety.
Investments For Children
Investments for children are something that you should take seriously as it will have a great impact in the future. It is your responsibility to teach your children about the importance of investing money. While it is never too early to start investing, you do want to make sure they are old enough to grasp the concept.
You should also think carefully about what you types of investments you are teaching them about. They should be appropriate for your children, as well as teaching them about making the right choices.
Investments For Children Begin With Savings Accounts
While these are the most basic types of investments, they are still very useful. Opening a saving account for your child does more than just teach them about earning a return on their investment. Savings accounts give children a general idea of how banks work. With these accounts, children will learn about filling out deposit slips, tracking their money, and learning how compound interest works. As a parent, you can have your children save a specific percent of every dollar that they receive. To make things even more rewarding for your children you can match the money they are saving.
Investing In Kid Friendly Stocks
It is never too early to expose children to the stock market. However, when investing with children in the stock market you do want to pick companies that they can relate too. For example, most kids have heard of Disney, Nickelodeon, Apple, and Mattel, but chances are they have no clue who Proctor & Gamble is. Investing in companies that they can relate grabs to their attention, which makes it easier engage them in the everyday activities of the stock market.
Mutual Funds Provide A Great Return
Mutual funds are another great investment for children because they do not require a lot of money to get started, but still offer a decent return. For example, parents can start the investment with $100 and add money each month to continue growing the investment. By simply adding $20 to the initial investment, your mutual fund can grow up to $10,000 in about 18 years. How large your investment can grow will depend on the annual return.
Precious Metals Among The Most Popular Investments For Children
One of the things that interest children is being able to see and feel things. Investing in precious metals gives children the ability to see what their money has earned rather than just hearing about it. Whether you invest in coins or bullion kids have the opportunity to handle the investment making it real for them, but can also show it off to other kids, giving your children a sense of pride and accomplishment. However, as a parent you will need to ensure the safety of the investment.
Remember even the best investments for children are useless unless you teach your child the value of money. While you can easily invest your own money for your children having them earn and invest their own money will help teach valuable financial lessons.
International Mutual Funds
Investing in international mutual funds4 is one of the easiest means in which an investor can enter the world of global finance. Getting involved with different investments internationally has attracted investors who want to find a greener pasture through their assets.
Nowadays, finding international mutual funds that suit your investment needs is not an easy thing to do. This is due to the fact that there are already several types of these funds and you need to have enough knowledge in order to find the appropriate mutual funds for you.
There are international mutual funds that are more focused on a single region while others are applicable to various investments all around the globe. Hence, you must take into consideration the idea that the quality of the international mutual funds you have chosen defines your ability to recognise foreign stocks and analyse their movements over time.
What Are International Mutual Funds?
A mutual fund is a type of investment formed by a group of investors that allows them to employ a portfolio manager to supervise the progress of their combined assets. Investing in international mutual funds is not just an ordinary type of investment. Instead, it is a grasp of the larger environment of a diversified portfolio.
With this, diversification is one of the reasons why investors aim to invest in mutual funds. Since a diverse portfolio cannot be assembled by just an average investor alone, it is to the investors’ advantage to enhance their investment opportunity. Most importantly, diversification is the most essential rule so far as investment is concern. As much as you can make your portfolio diversified by investing in various funds domestically, you can diversify your portfolio even more with various investments internationally.
Another thing about international mutual funds is that it gives the average investor an access to managers who are more experienced and can trade their securities professionally. Generally, managers of international funds have an extensive know-how of the global market. They also have research teams and analysts spread all across the globe. Hence, their management is more reliable and more trusted.
Lastly, international funds also enhance the probability of earning return on investment in the future since there is a broader market for it. Overall, they also lower the volatility of your securities towards various changes in the economic conditions.
Possible Risks Of International Mutual Funds
There are also risks attached to international mutual funds that you need to consider before finally taking the action to invest internationally. First of all, despite the fact that diversification in the international scenario reduces the overall volatility of the investment, the risks of volatility varies over time.
The instability of foreign countries affects the markets that emerge in the international market and the fluctuations in the rates affect the value of the investment in dollar even though its price remains the same. Also, diversification is not a guarantee that the investment will earn high profit. Moreover, it cannot provide absolute protection from the possible declines that may occur in the international market. However, with the help of an experienced portfolio manager or adviser, these risks may be avoided as your best interests are always taken into account.
You can contact us and speak to our reputed financial adviser regarding international mutual funds before you start investing internationally.
There are several property investment companies you can choose from to invest in real estate. The best property investment companies are available to help you diversify your investment portfolio by guiding you through the investment property process.5
One thing that investors are discovering is that investing in property overseas is often more rewarding than investment properties in your home country. The main reason behind this is the capital growth, but they are also a great source for extra income.
Principal International One Of The UK’s Leading Property Investment Companies
Principal International was founded in 1991 with the goal of helping people invest in property overseas. This company specialises in helping investors purchase properties in the Caribbean, the Far East, Europe, the UK, and the US.
For investors who are looking to diversify their overseas property portfolio the advisers at Principal International can help with the purchase of commercial property, including hotels, care homes, and student housing. Here is a great example of what they can offer you. A hotel project requires a £10,000 and you can earn a 12% yield over the first 5 years of the investment.
Best Overseas Property Investments Great Choice For Investors
Best Overseas Property Investments is a great choice for investors who are looking to invest in overseas properties with minimal risk. This company’s goal is to provide investors with a diversified property portfolio no matter the requirements or budgets available.
Each investor’s portfolio will be created to fit their individual needs, but will also focus on providing the best net yields with a low capital outlay. While they specialize in buy to let properties in both the US and the UK, they also offer properties that can be bought through a Self Invested Personal Pension. A great example of property you can buy through this company is a detached cottage in Belize that offers a 12% net yield each year if it has 50% occupancy.
Check the equity release application process
If you still have questions about what property investment companies can do for you contact a reputable financial adviser. Your financial adviser can help you decide what overseas property investments work best for your budget, as well as help you diversify your property portfolio.