Good Investment Ideas

If you ask 10 advisors about their good investment ideas you will get 10 different answers. It can make it difficult to really know where you stand as all 10 advisors may be absolutely right. Some people will spend their entire life chasing the perfect investment that will return 500% in six months. However, most of these people will never find it or they will not invest heavily enough once they do.

Unfortunately, you can have all the good investment ideas in the world and not compete with the average Joe investing in a group of mutual funds. I think everyone would be better off if they focused on what they are good at, and left everything else to a professional. Investing is no different and most of us that think we can beat the market will fall very short.

Indeed, ninety percent of the people that know that can do better than a full time advisor will be proven wrong year after year. For these reasons, you shouldn’t really focus on finding good investment ideas that involve the stock market at all. Here is the best idea you will ever hear, leave it up to the professionals, and simply invest what you can, when you can, and choose money markets or ETFs.

This is of course, not the only way to invest your money. There are many good investment ideas that do not involve stocks and bonds at all. However, to find these investments you don’t need my advice or anyone else’s. You should invest where you see opportunity or if you stumble upon a niche that has not been discovered yet. Once you get into this frame of mind, everything you do and see will give you ideas.

Many people like the comfort and security of their full time job. The thought of opening a small business or going out on your own is painful to them. However, they still have money to invest and would love to get a better return on their money than they would expect in a mutual fund.

If this sounds like you, there are infinite possibilities for you to invest your money in. If possible, consider trusted friends and what they are thinking about. It may be something as simple as a builder friend is looking for investors to help secure land to build a new home or something far more complicated.

Many of us do not like this type of investing. We may say things like “I don’t know anything about building homes” or “that idea is far too complicated for me”. However, if you friend or relative is trustworthy, competent, and has their own skin in the game you don’t need to know much more. There are people in this world that will succeed in anything they do. When one of these people comes to you with good investment ideas, it really doesn’t have to be more complicated than that.

I have friends I would invest heavily in without even hearing their idea. Simply, I know these people will do well and if they like the idea, I will too. This is really the best way to get rich in this country. Many of use spend our lives investing into our retirement accounts and never really get to the top of the hill. However, with a small investment into a friend or something you will do yourself, you can really skyrocket your finances.

Good Investment Ideas – Example

For our exercise, think of the 10 smartest, most capable people you know. If you had $100k to invest and all then trusted friends came to you and asked you to make a $100k investment into a new business. They offer to match the $100k and run the business without your intervention. Who would you give the money to? Would it really make a difference what they were going to do with it?

The moral of the story is if the smartest guy you know is willing to invest $100k in something, maybe you should too. At this point you don’t have to worry about good investment ideas, someone else has already done this for you.