Investment Opportunities for Saskatchewan Residents
There are very few people out there who wouldn’t be happy with a few extra bucks in their savings account. Whether it is the unstable state of the economy, low-paying jobs, or unexpected expenses, money is often the most common cause of stress and worry about the future.
While switching careers may not be an option for you, or earning a big promotion, there is another way to increase the financial resources at your disposal…investing. Investing is a method by which you turn the money you have into more money by finding the right opportunities.
There are endless ways to invest and earn more money for your future, whether you are saving for retirement, establishing a college fund for your kids, or hoping to travel more. For residents of Saskatchewan, here are a few ideas you should consider to improve your financial situation.
Guaranteed Investment Certificate
You may have some money sitting in a savings account that is doing very little other than earning a few pennies from interest every month. If that money isn’t going anywhere, you might as well find a way to invest in a better interest rate. A Guaranteed Investment Certificate, or GIC, works like a temporary savings account.
You deposit a certain amount for a fixed period, and at the end of that period, you receive the agreed-upon interest as long as you have not withdrawn any of the money. This is a simple way to make your savings work a little harder to generate extra income, and though it will not make you a fortune, it is generally more beneficial than leaving all your money in traditional savings accounts.
Commercial Real Estate
If you have the money upfront to cover the cost of a property, then purchasing Saskatoon commercial real estate could be a great easy to invest. Whether you are buying a business for sale or a piece of land to lease out, you can earn a profit from rental income or business revenue by purchasing commercial real estate.
This investment strategy requires a lot of research, as you will need to determine the desirability of the land, the real value, past business finances, and more to ensure it is a smart investment with high earning potential.
The Canadian Stock Market, also known as TSX, provides a platform for many public companies to sell their stocks. Many of these companies are available on TSX as well as the stock exchange in the US. Trading stocks can involve multiple strategies, such as day trading and long-term buys.
Essentially, the idea is to buy when the stocks are priced low and then sell when they rise in value. Or, you can hold onto the stocks and accept dividend payments depending on the trade agreement with the company. Stock trading is a little riskier as it is dependent on the state of the market, but it can also yield high rewards if you know what you are doing.
Owning a rental property can be extremely profitable. Younger generations especially tend to avoid buying homes because they do not want to get locked into a long-term mortgage, so they are far more likely to seek out rental housing. Short-term vacation rentals are also great opportunities in a beautiful place like Saskatchewan. Assessing real estate investment opportunities is the key to making this strategy work.
You must understand terms like return on investment (ROI), net operating income (NOI), and cash-on-cash returns. Property owners must navigate additional expenses like taxes, insurance, mortgage payments, utilities, and maintenance equipment. If you want to be less involved in the day-to-day operations, then hiring a property management firm will also cut into your profits.
One of the most basic forms of investing is a mutual fund. This is an entity that pools money from many investors and invests that money in various opportunities. Investors then receive lump-sum payments or dividends throughout the year depending on how much money they have invested and the market.
Mutual funds are generally considered safe investments because they have very diverse portfolios, minimizing the risks to individual investors. Plus, mutual funds are overseen by a fund manager, so you will not have to worry about doing all the research and choosing what stocks to invest in.
Secure a Brighter Financial Future Through Investing
Planning for the future is key when you want to live a comfortable lifestyle. Investing is a way to increase your financial resources, and the results will depend on which investing route you take.
Higher-risk investments tend to yield higher rewards, but they may require a lot more upfront funding. Low-risk investments can slowly build income without risking the money you have already earned. Choose a path that makes sense for what you can invest and how much work you want to do.