How to invest successfully

You may have heard of investing but never been sure precisely what it entails. Learning about the numerous options available, you'll soon discover that you don't have to be a financial genius to invest successfully, and that you could effectively supplement and grow your income at little to no risk.



Whether you're looking for a quick fix or a long-term investment solution, you can find many options ideally suited to first-time investors. As long as you've already settled important debts and have sufficient money free to invest, it could be time to look beyond savings accounts and consider everything from ISAs and bonds to stocks and index funds.



When you're dealing with investments, the most appealing options traditionally carry the highest risk, which may put them out of consideration if you're worried about losing money. Fortunately, there are still many investment options that deliver a high return on investment without carrying unnecessary risk, allowing you to sit back and watch your savings grow without having to worry about keeping a close eye on the state of the markets.

Fixed annuities are one such option, which can be arranged with your insurance company. In exchange for managing your money, your insurer can deliver a guaranteed return on investment, often with tax deferred interest. However, unlike some investment plans such as bank accounts, fixed annuities are usually not liquid - meaning you may not be able to access your money until the fixed period is over.



Money market accounts are another popular option for investors looking for a higher ROI (Return On Investment) than is offered by their bank, though these accounts are, generally speaking, less financially secure. If you're seeking an investment option with guaranteed security, Certificates of Deposit (CDs) could be the ideal choice, as long as you're prepared to settle for a more modest growth rate.



If you're keen to get involved in the stock markets though, even this doesn't have to be a costly enterprise, with some options allowing you to invest as little as £10 if you bypass brokers and buy stock directly from companies and their agents. Many of these low-cost stock investments don't even carry fees, making it easy to get started on the markets and see your money steadily grow over time.



Stocks that offer higher returns of 10 per cent or more generally require a larger up-front investment, as is the case with index funds, but once you've made your initial purchase you will usually be free to add as much or as little to your investment as you like, as frequently as you feel like it.