In this series, I’m sharing “other” ways to invest beyond standard 401(k), 403(b), 457, TSP, Traditional or Roth IRA, mutual fund, stock, or bond investments.
Part Three Invest In A Business
Starting a small business can provide a financial return as well as the incredibly satisfying work of fulfilling a dream. A business can allow you to produce an income that is not entirely dependent upon you. The McDonald’s franchise owner does not have to do all of the work, but they are able to enjoy the profits that result from the efforts of dozens of employees. This can lead to substantial returns on investment that are far better than the average return of any mutual fund!
Consider the following scenario. Suppose one puts up $25,000 for a franchise that produces $50,000 of profit each year. That is a 200-percent return on investment – only it happens year-after-year-after-year … the Lord willing! Yes, the work would be demanding and time-consuming and energy-draining, but the return on investment is great and less dependent upon the world market.
If it isn’t your dream to run a small business, consider investing in a small business. There are great leaders with terrific ideas that just need some additional funding in order to launch to the stratosphere.
Questions To Ask Yourself:
- Do I have a business idea that I am fired up about and believe in?
- Has a proven business leader/entrepreneur looked at my business idea and told me it looks great?
- Am I willing to put my own money into this deal?
Read the entire series (available after 9/30/2011)