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Did you know that real estate is one of the best long-term investments according to Americans? Real estate is just one of the various ways to invest your money.
As you’re starting out the new year, you might wonder about the best investments in 2022. From Bitcoin to gold, it might be hard to choose.
This guide is here to help. Read on to find out the best investments in 2022 today!
High Yield Savings Accounts
A high yield savings account lets you earn money on cash balances. This allows you to earn much larger interest rates than other banks. You can also transfer the money with ease to an ATM or your other bank.
The great part is that banks with these accounts are FDIC-insured. You don’t have to worry about losing a deposit.
If rates are too low due to inflation, your returns could be low as well. It’s a great option for those who are nervous to lose money.
Invest in Gold
For those who aren’t risk-averse, consider the different types of gold. Even with inflation, gold stays strong during uncertain times.
While cryptocurrency and even money’s value can vary, gold stays strong. You also have options such as jewelry, coins, bars, and more.
Government Bond Funds
EFTS or mutual funds are when you invest in debt securities issued by the United States. They’re similar to CDs since you don’t have as much of a risk.
This depends on the current interest rate. The price of an existing bond will increase when interest rates drop.
Some good options include Freddie Mac and Mannie Mae. If you’re looking for cash flow or just getting started with investing, they’re solid options.
Keep in mind that these funds can vary based on the type that you choose. Long-term bond funds might vary more than short-term options.
They’re considered a safer option since they’re backed by the U.S. government.
Corporate Bonds
Corporate bonds could offer you higher yields. While they offer you higher interest rates, there’s more risk involved.
Look for investment-grade corporate bonds. These are ratings of BBB, AA, A, and AAA. Although you might experience higher yields with other grades, they could be a higher risk.
Bond ETFs and mutual funds. Look for them without trading fees.
You can find them through brokerages. It’s important to double-check the fees since they could have load fees.
Invest in Real Estate
Real estate is one of the oldest ways to invest and actually might be quite safe depending on the local conditions. You could receive consistent income if you have a rental or commercial property.
Keep in mind that real estate is quite expensive since you’ll have property taxes, maintenance fees, etc. You could consider REITs where you invest in real estate, but they’re more volatile.
High-Quality Stocks
Look for high-quality stocks, those that continue to grow over time and are backed by strong companies. These can include JPMorgan Chase, Amazon, and Apple.
Dividend stocks offer you a return even during a risky market. Consider large-cap value stocks as well.
Value Stocks
Value stocks tend to do well, even during times of high-interest rates. Consider investing around the globe instead of only in your country.
If you notice inexpensive stocks, there might be a reason for that. Research and decide if it’s the right choice before you lose money.
Invest in Bitcoin
Cryptocurrency is an electronic currency that you can find around the world. Bitcoin is one type of cryptocurrency.
It’s also one of the most available for purchase. The price does vary quite a bit though.
You’ll want to watch the market to decide when the best time to sell is. Even if they decrease now, they could fluctuate and increase again.
It’s not backed by the FDIC. Cryptocurrency also isn’t run by a company or government. The amount is based on how much people will pay to buy it.
Bitcoin is great for those who don’t mind risk with their investments. Those who are afraid of risk should avoid it.
At any moment, cryptocurrency could be outlawed which would make it worth nothing. When the rate does increase, it could be temporary.
Many brokers online sell Bitcoin and other forms of cryptocurrency. Brokers could be limited as far as what they have available.
NFTs (Non-Fungible Tokens)
Today, NFTs are increasing in popularity since they’re digital in Blockchain. Instead of other cryptocurrencies that have become saturated, you can have true ownership with this method.
Not all NFTs are the same though. How you can interact with them and how you manage data will determine its power.
It also depends on the value to the consumer. Since NFTs are newer, it’s a great time to get in before it becomes too crowded. Investing now could mean a large return on your investment.
Angel Investing
You can invest in someone’s business or idea and help them financially. Even if it’s a smaller amount there could be multiple investors.
Over time, you could see that small amount turn into millions of dollars. While it could be a high reward there’s still a high risk involved.
Many startups wind up failing, so it’s a risk. They could fail due to not raising enough capital. If this occurs, then you lose the money that you invested.
How To Pick the Right Investment
First, you’ll want to set up an investment portfolio. Think about how much of a risk you could afford to take.
It’s a good idea to diversify your portfolio to avoid losing your money all at once. For those who need to stick to a less risky option, choose high yield savings accounts.
The Best Investments 2022: A Guide
After exploring the best investments in 2022, you should have a better idea of some solid investment options. Take your time and consider speaking with a financial advisor for help.
Would you like to read more educational content? Be sure to check out our other articles today!
