There is a preconceived notion that investments are only for those who are financially well-off, that couldn’t be farther from the truth. The best investment is the one that takes into consideration your needs and financial goals. 

High-yield savings accounts, money market funds, certificates of deposit, government bonds, stocks, real estate, and most recently, cryptocurrency. 

There is so much information available that it is hard to know what is true and what is not. 

There are a lot of reputable hard money lenders out there, but knowing what to look for when evaluating one is really key. The team at Nashville hard money has listed a bunch of criteria to look at when choosing a hard money lender. 

Our team will try to help you sort through all the noise and find the information that will help you make the right decision for your financial future.


Types of Investments


High-yield savings accounts

This type of savings accounts usually yields 20 to 25 percent more than a traditional savings account, allowing for your money to grow at a faster rate than normal due to compounding the interest you earn. 

This is a popular choice especially since the rise of online banking. This type of investment is best for short-term savings or money that you will only occasionally take from.


Certificate of Deposit 

A certificate of deposit (CDs)is offered by banks or credit unions offering higher-yielding interest rates but on the condition that the investor will not touch the lump sum for an agreed period of time. 

Not all CDs are the same. Almost all financial institutions offer them at varying rates, periods, and penalties for early withdrawal. Common terms for CDs are one, three, and five years. 

CDs are best for the money you know you will not use in the near future and money that you are growing to serve a specific purpose.


Money Market Funds

The money you invest in a money market fund purchases a high-quality short-term government, bank, or corporate debt. These instruments are described as highly liquid and near term. 

A money market fund is an investment that is sponsored by an investment fund company. Therefore, it carries no guarantee of principal. This is ideal for the money you may need soon that you’re willing to expose to a little more market risk.


Government Bonds

Probably the most common investment made by the older generation, this type of bond is issued by the government as a security for you as an investor for loaning the government money. The term is anywhere in between a year all the way to 30 years.

Because you are dealing with the state, it is considered as a virtually no-risk investment but also because of that, interest rates are also relatively lower compared to other investment options. This results in a portfolio that has low volatility. 

This investment type is for people who are risk-averse and do not want to take chances on their money. If your portfolio consists of 100% government bonds, you will likely have to work for longer before reaching any financial goals you have for retirement.


Corporate Bonds

Corporate bonds are bonds issued by corporations—from small family-owned businesses to large multinational corporations—to raise money to fund operations or to provide capital for expansion. 

Corporate bonds are securities that represent a claim on a company’s assets and earnings. The buyer of a corporate bond is essentially lending money to the company, and the company agrees to pay interest to stockholders in the form of dividends.

Investors seeking fixed-income security with a greater prospective yield than government bonds are willing to take on a little more risk in exchange. The larger the risk of a corporation going out of business, the higher the yield on corporate bonds. Bonds issued by large, reliable firms, on the other hand, often have a lower yield.


Mutual Funds

Many people use mutual funds to build a steady income stream by investing in a variety of investments, including stocks, bonds, real estate, and businesses. Mutual funds are pools of money invested by individual investors to buy stakes in a portfolio of stocks or other securities. 

An individual investor may invest in an entire fund or may buy individual stocks or bonds. Funds are managed by professional investment managers who examine every holding in the fund and decide whether to buy it and how much to buy. 

The fund’s portfolio is then rebalanced periodically to keep it in line with the original goals so that it does not lose money. This is great for someone who has long-term savings goals and who does not have the time to personally manage their own portfolio.



Stocks are proof of part ownership in a company. Stocks provide the highest possible return on investment while also exposing your money to the most risk. You should not be disheartened or intimidated by the risk that stocks come with. When done right, stock investment can be very profitable. 

Stocks offer great diversification in your portfolio. Although stocks can give you high returns, experts typically advise that stocks should only make up 10% of your portfolio because of their high volatility.


Alternative Investments

These comprise cryptocurrency, gold and silver, and private equity. These rose to popularity after the great depression when investors saw their portfolios take a hit due to the economic crisis. 

These are for investors who want to try new things and are willing to dive into different ways of making money. Cryptocurrency has the highest volatility in all of the investments mentioned above.


Real Estate

Buying a property and then selling it for a profit is traditional real estate investing, as is owning a property and collecting rent as a type of fixed income. However, there are a number of other, much less hands-on ways to invest in real estate.

Real estate investment trusts, or REITs, are one popular method. These are businesses that possess income-producing properties and payout dividends on a regular basis.

These are ideal for investors who already have a well-diversified portfolio and want to diversify it more, or who are willing to take on greater risk in order to achieve higher returns.