Where to invest: Value appreciating assets
We are all told to invest a good portion of our income. We keep hearing how regular investment is the key to financial freedom. We see graphics and tables showing how compound interest can make $1000 invested in your 20s can yield 3100% returns even if assuming a modest return rate of 9% p.a. But what no one tells you, is exactly where do you invest your money? In this article, we cover everything you need to know about evaluating investment vehicles. Where should I invest in? Invest in assets whose value appreciates with time . When you invest in an instrument, first and foremost, determine if its value increases with time. You will probably get many such assets. Some examples would be: Residential real estate Commercial real estate Mutual Funds Bank FD Stock market (long term investment) Buying equity in startups and privately owned firms and the list goes on and on. However, not ALL of these instruments are created equal! Always look at the appreciati...