In order to have and enjoy a comfortable future, for some people, investing is absolutely necessary. You might be wondering, why should you invest? Well, investing can provide you with an additional source of income, help fund your retirement plant, or it might even get you out of financial problems in the future. And, above all, investing can help you grow your wealth – by allowing you to meet your financial goals and increase your purchasing power over a period of time.
In this article, you will be able to read about the best investments that you can make in 2019. Let’s take a closer look:
1. Money Market Accounts
A money market account is an interest-bearing, FDIC-insured deposit account. These accounts usually earn higher interests than a savings account, and they do require higher minimum balances. Since they are liquid and earn higher interest, money market account are a good option for emergency savings. In exchange for a better interest-earning, people usually have to accept more restrictions when it comes to withdrawals, like limits on how often they can access money. If you are a beginner in investing, this account will allow you to build up cash flow and set up your emergency funds.
2. Peer-to-Peer Lending
Peer-to-peer websites work like tools to connect investors with customers that are in need of a loan and these sites basically allow investors to become a bank, providing a small percentage of multiple borrowers’ loans. Investors buy notes and receive a monthly income in the form of a loan interest or payment. Hence, it can easily be a win-win situation for everyone that is involved.
3. Certificates of Deposits
As you already know, banks offer a wide range of terms for their deposit accounts, ranging from three months to five years. Which period of time of CD will depend on your timeline and how long do you want your investment out of your hands. Certificates of deposits or CDs for short allow people to invest their money for a specific period. If you choose a longer-term, you will be able to reap higher benefits later on.
4. Short-Term Bond Funds and ETFs
According to the expert team from InvestoTrend.com, short-term bond funds are usually managed by a professional financial adviser. The bonds are not as stable as money markets, however, they do offer the potential to earn a higher interest. These bonds are products of the market and will pay according to the market’s condition in fluctuating monthly deposits.
REIT is short for real estate investment trust, which is a term for a company that manages or own real estate. REITs do not usually pay taxes, as long as they pass along most of their income as dividends to the shareholders. If you are looking for ways to own real estate without the need to manage it, these companies are the perfect options for you. Hence, if you are looking for passive cash flow or income like retirees, you might find REITs appealing.
If you are looking for someplace that you can invest some money in for the short-term, do not be afraid to think outside the box. Hence, do not waste any more time, do some research, and start investing and growing your wealth right away.