Top 5 Investments To Consider Today
The job of finance professionals has changed in the past few decades. It is no longer about moving money around and making a little bit of it; instead, we must make sure that investments are made today to support our children's future tomorrow. But where do we start? Which investments should we prioritize? Who can I trust for advice? How much will my investment be worth when I need it again (yes, that means you WILL get old!)?
Thankfully there is help; here are five of them:
1) Government Bond Funds
Government bond funds offer many advantages over direct government bonds: They allow investors to earn higher rates than they would get on plain vanilla government bonds, but without locking their capital up for long periods of time. And if rates rise after you've purchased the bond, you can sell your fund at a nice profit - this is impossible with plain vanilla government bonds! These funds are great investments even if you're nearly retired; interest rates are not expected to rise above 1-2% (which is what many of these funds yield) in the foreseeable future.
2) Exchange Traded Funds (ETFs)
An ETF is basically a share of stock that tracks an index like SPY or QQQ instead of owning shares in individual companies like VOO does. This type of investment is very useful because it offers investors broad exposure to large companies, asset classes, or indexes without exposing them to any form of specific liability or industry. And although the price of an ETF doesn't move exactly in tandem with its benchmark, it is very close.
3) Private Equity Funds (PEGs)
One way to invest today while saving for the future is to make a downpayment on your house and then rent it back from your tenant(s). The rent you receive will cover most - if not all - of the monthly mortgage payment, after which any excess can go into an account dedicated to long-term savings. Although this method might seem counterintuitive at first glance, remember that by making a downpayment, you are effectively saving money since you are no longer required to pay PMI! Furthermore, once you have paid off your mortgage entirely each month, the equivalent of your old mortgage payment will go into your long-term savings account.
4) Real Estate
Real estate is the only investment that actually gives you something tangible in return. It's great because it allows you to keep your money liquid, yet at the same time have a long-term plan to work with. Also, real estate is an inflation-proof investment, so it will probably retain its value even if prices continue to rise over the years. Visit Search Party Property to grow your portfolio.
5) Gold Bullion
Gold Bullion is a long-term investment that has become increasingly popular over the last few years. Although it might seem counterintuitive, purchasing gold will help you hedge against inflation in much the same way as buying real estate. However, even though gold prices are currently high, this trend is expected to continue for many years to come, so there's no need to rush.
Finally, choosing where to invest your money is one thing; being disciplined enough actually to do so is another. It's very easy for investors to get distracted by shiny new toys (think penny stocks) that might promise fortunes within days but almost always come with large price tags. Resist the urge to try trading or day-trading because success is almost never guaranteed. If you stick to low-cost index funds and let your money grow for decades, it will pay off in the end.
