A high yield investment is one that promises returns on your investment that are higher than industry standard. A high yield investment may not always require a high risk investment, but a good amount of time is generally needed for the investment to mature and reach full potential. Examples of high yield investment opportunities include:
High yield savings accounts that offer at least 4% return. This is considerably high for a bank to offer but many offer the program as an incentive to keep your money in one bank for as long as possible. Some banks impose restrictions on high yield savings accounts like blocking access to such accounts from online and ATM account activities. This is done to ensure that account holders won’t clear out their savings account on an impulse buy.
Insurance company annuities are able to guarantee a rate of return for your investment and typically end up surpassing the estimated guarantee. Insurance companies are able to offer this service with a guaranteed rate of return because insurance companies are regulated differently than banks and pay lower taxes each year, which increases the amount of savings that the company can return to the investor.
Foreign Currency. Investments in foreign currency are growing in popularity as several nations develop their economies and tourist industries. Investing in foreign currency can be very profitable if the right currency is invested in before an economic boom takes place.
Gold: Many analysts agree that the value of gold is steadily increasing. Gold offers a tangible investment opportunity that is transferable in any country. The gold standard is a universal standard which means that an ounce of gold in Los Angeles will be worth the same as an ounce of gold in Madrid.
Most high yield investment programs are offered via the Internet, so care should be taken when approaching any investment opportunity advertised via the web. Only stick with reputable organizations to handle your investments. Don’t try to cheat the system by investing in a tax haven in a foreign country that doesn’t exist. Do your homework before making a commitment. Be sure to use your own common sense. While there are several legitimate high yield investment programs on the market, none are able to promise millions of dollars over night. Any program which promises a high rate of return in a very short times is probably a scam. Also be sure to check the web and Better Business Bureau before handing your money over to an investor to make sure that the company you are investing with has not received any complaints against their business practices.
Many high yield investment opportunities have turned out to be elaborate Ponzi schemes in the past, and recent headlines have shown the world that nobody is safe from being a potential victim. This should not scare the investor, only caution them. At the end of the day, only the investor is truly responsible for what happens to their money. Any investment opportunity carries a degree of risk, and the investor should be fully prepared to accept that risk before making an investment.