Most people probably do not have the gut to try to make quick profit from the stock market or forex market.
While they admire those who seem to make a lot of money from buying and selling for capital gain, they know that they cannot do it.
They are too conservative for that. They want to know how to invest for income, since they know that investment can grow their wealth.
How to invest for income for conservative people?
Let us look at some of the traditional ways that everyone can do.
1. Treasury bond
Treasury bond is issued by the government, and is known as a risk free product.
That means you will definitely get the capital back when the bond matures. Meanwhile, you can get dividend income twice a year.
The dividend income is usually higher than the bank interest rate. You can buy 30 years or 5 years Treasury bond.
You can buy through the bank or the brokers.
Treasury bill is a bit different from the Treasury bond, since it is a short term investment. You do not get dividend income.
You pay at a discounted price.
For example, you pay $990 and you get back $1,000 for a three-months investment. That means you get back $10 form your investment. While that does not seem like a big deal, you have to bear in mind that the period of investment is just three months.
The rate of T-bill differs from quarter to quarter. The government determines the rate.
3. Stock market
You can invest in some good companies that pay dividends at least once a year.
There are some companies that are resistant to the economic crisis. That means they make money no matter how the economy is.
Those companies are usually blue chips.
4. Mutual funds
Mutual fund is another way to invest for income.
There are many mutual funds that provide regular income for retirees. You have to check that these funds do not engage in risky investment.
5. Rental income
You can consider splitting your house into two apartments, so that you can earn rental income.
If you have money enough to pay for 30% of a new house, you can buy one, get a bank loan, and rent out for rental income.
Bear in mind that location is a very important factor.
If you are new to this field, make sure you know the best location in town for working adults to stay.
How to invest for income? These are the very conservative and proven ways.
With internet, opportunities arise to invest for income by setting up a blog, a website, affiliate marketing or forums.
Getting paid from internet is real. If you are savvy enough, you can think about investing online so that you can get long term income from the web.
Scheng1 is a passionate blogger from Singapore. Rich in every sense reveals my deep desire in enjoying life, and be rich in every possible ways. Personal Finance is about money, from making money to investing money. Retirement in Asia contains resources about retirement planning.
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