What are the best ways to invest to compound? This is something that you will find out soon enough, but first see what the greatest mind in history said about compound interest. Einstein said the most amazing thing in nature is the power of compound interest. It is something that can be explained by math but not by the average everyday person.
If you want the best ways to compound your money then you need to find opportunities that allow your money to make money over and over from the principal and subsequent interest you gain over time. The most common form of compounding your money is by putting it in a savings account or by purchasing bonds or cd's. These don't work as well anymore because of the lowered interest rates banks have put in place. Here are a few other ways to compound your money:
- Why "precious metals" are really precious? It is well known in trading circles that the price of gold and silver on average increase by at least 15 percent each year all things being equal. So if you invest $10,000 in gold today it probably will be worth about $163,000 in 20 years. Investments like this you can't find in many circles, but with precious metals they do exist. For proof, just take a look at where gold was six years ago and you will find it hovering around the $300 an ounce mark, today it is way above $1,000 and experts still see $5,000 in its future.
- Strategy: Hold your $10,000 in gold for 20 years and gain a very probable sixteen-fold increase.
You do have an option: One of the best ways to compound your money that many people haven't heard of is the selling of options. It is risky, but only if you do not no what you are doing. There are a lot of people who are making at least five percent a month from this business. The good thing is that anybody can take part in it. You do not need an advanced background or a degree. What you do is you buy stock and then you hedge your stock position with the same amount option holdings. The buyer pays you a premium for taking this risk and no matter whether the stock goes up or down you keep the premium no matter if the stock is called away or not.
- First educate yourself on the ways options work and then first find options that are strong and stable, basically blue chip stocks and research them. Once you feel comfortable with the company find out how much you can make in option premiums by trading their stocks against option derivatives.