It may seem difficult to find extra money to save or invest for your future. However, putting away those few extra dollars today can result in the financial security to retire or have more control over your life. Let’s look at some investments that you’ll thank yourself tomorrow for making today.
Real Estate Can Be a Lucrative Sector
Investing in real estate can be ideal because there is no correlation between housing values and the stock market. In other words, if the stock market goes down, the price of a home can remain steady or even increase. Of course, it is a good idea to research a given market before buying a home or investing in the development of a property.
If you prefer more liquidity in your investments, an ETF or a REIT can be an ideal way to gain exposure to real estate. These instruments function much like mutual funds in that many investors pool their money together to fund home purchases or underwrite mortgages. An ETF is similar to a stock in that it can be bought and sold on a stock exchange.
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Index Funds Are Easy to Profit From
An index fund is a collection of investments that aim to mimic a stock index such as the S&P 500 or the Dow Jones 30 (DOW). Historically, stock indexes have increased in value by about 7 percent annually, and this factors in recessions and the Great Depression. Other benefits of index funds are low management fees and the ability to buy or trade shares in your fund with ease. This gives you the opportunity to hold your shares for the long-term or utilize a short-term strategy instead.
Bonds
Since bonds are a contractual agreement between the bond issuers and the bond holders (buyers), as a buyer you are legally protected and are entitled to recover assets before stock holders receive a penny. Of course if there are no assets you can still be left holding the bag. But bonds held to maturity are one of the safest investments around. So a balanced portfolio should include some bonds for safety and diversification purposes.
Invest in Precious Metals
Precious metals such as gold and silver will always retain their value. This is because they are tangible goods, which means that there will always be a limited supply. Generally speaking, when there is a limited quantity of something, its value holds steady or goes up over time. Because there is very little correlation between precious metals and the stock market, typically, gold and silver are seen as safe haven investments during times of economic instability. This means that your investment may actually appreciate during a recession or depression. The experts at McAlvany ICA suggest avoiding “limited edition” or “modern rarity” hyped coins and instead recommend investing in proven coins.
By dividing your investment portfolio between Real Estate, Stocks, Bonds and precious metals your portfolio will be much more stable than if you limit your investments to only one sector.
There are many great investment opportunities available to you that can result in long-term gains. Whether you are an active or passive investor, it is important that you have a way to save money today that can be used to make life easier in the future.
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