31 Smart Passive Income Ideas That Actually Work _ Ways to get money, Smart passive income, How to g

5. BONDS

INITIAL INVESTMENT: 6/10
RISK: 3/10
TIME: 2/10
MONEY GAIN: 3/10

When you hear people talking about investing, you’ll typically hear them discussing stocks and bonds.

But what are bonds?

When you purchase stocks, you are buying a tiny part of the company. When you purchase bonds, you lend money to the company and receive interest payments on that loan.

Companies aren’t the only ones issuing bonds. The government can issue bonds to finance projects too.

The two key elements of bonds are the interest rate you will get and the term (how long the money is being lent).

Bonds are much less risky than stocks but do not usually produce as high of a return, as you don’t benefit from the company’s growth.

But they have two significant benefits:

• They are income-producing assets and give you a fixed stream of income.
• They can offset some of the volatility you might see from owning stocks, although they still carry some risks.

6. INVEST WITH ROBO ADVISORS

INITIAL INVESTMENT: 7/10
RISK: 7/10
TIME: 2/10
MONEY GAIN: 7/10

Until a few years ago, if you wanted to invest your hard-earned money in the market, you had to hire a portfolio manager or financial advisor.

This not only required a minimum sum to invest but also came with substantial fees.

What are Robo advisors?

Robo advisors are digital platforms that aim to change how you invest using algorithm-driven technology. This makes high-quality investing available to everyone, even if you have little money.

Betterment is the largest Robo advisor on the market and, without a doubt, one of the best, especially if you are not keen to spend too much time learning about investing.

There is no minimum amount to invest, the fees are low (between 0.25-0.4%), and you don’t have to know anything about the stock market.

All you have to do is:

• Open an account (which takes less than 5 minutes) with no minimum deposit.
• Tell Betterment a bit about yourself: Where are you in your financial life, and what are you investing for? Down payment for your mortgage? Dream vacation?
• Based on your answers and risk tolerance, Betterment will recommend an investing plan and use its advanced technology to build a personalized portfolio.

It couldn’t get any easier than this!

Blooom is similar to Betterment but for your 401k plan. What makes Blooom unique is that it will give you a free analysis of your current employer-sponsored retirement plan. This will help you to uncover unnecessary hidden investment fees very quickly.

Not only will they work to reduce your investment fees, but they will also rebalance your retirement portfolio based on your birthdate and retirement age, to help you reach your retirement goals.

Get your free analysis in under 5 minutes!

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