8) Invest in TAX CDRs and Fixed Deposits
Tax CDRs and fixed deposits will have the lowest interest rate but are guaranteed investments and thus I would always recommend securing a good percentage of your money in such investments for a piece of mind. They come under the umbrella of save investments and are recommended. That’s all.
- Investment Amount: 20% or $24000 in 5 years
- Normalized Return on Investment on 6th Year: $6500 (Multiplier: 1.4X)
9) Invest in Your Business
Any business which you can run alongside your regular work can give you good returns. Usually, businesses have a profit margin of 30% and above and this is something which you should definitely consider. Amazon FBAs and drop shipping are some of the business models which need some skills during setup and can later be managed on autopilot with some staff taking care of the daily chores. Having a salon franchisee or some other franchisee can also be a safe model. You are investing 30% of your capital here.
- Investment Amount: 30% or $36000 in 5 years
- Normalized Return on Investment on 6th Year: $15000 (Multiplier: approx 2X)