Times when one could have simply set aside a portion of one’s income to place it in bank and hope to amass a respectable fortune are long past – today an investor should take into account numerous different factors and correctly choose time to put his money into a particular area, at least if he hopes to get any returns. Here are a few things you would be wise to invest in this year.
Markets showed considerable volatility since the beginning of this year and, as a result, savvy investors turned to a tried and true, yet often overlooked, venue – gold. And with quite impressive results. Usually gold is considered to be a safe haven for those unwilling to get deep into the investment mechanics and underlying processes, but since the beginning of this year gold showed growth that even outpaced equities, most currencies and major stock indexes.
2. Real Estate
Real estate never comes out of fashion, and statistics show that it has become an even more popular object of investments lately. However, if you want to buy a house that will grow in value in the course of time and not vice versa, you should tread very carefully. The location of the house should possess certain characteristics, such as healthy population and job opportunities growth, the history of home price growth for some time and so on. Read this list of popular cities where investors are buying homes to get a more distinct impression of what you need.
3. Paying off Debts
It may look rather weird among investment tips, but if you think about it, debt is something akin to a negative investment – and in the long run, a debt not dealt with in a timely manner may be much more harmful than an investment beneficial. Thus, before you decide on any particular type of investment to make, think about all the debts you have currently, and you will probably see that it is what you should start with. Just make sure you know how to distinguish good and bad debt.
4. Roth IRA
One advantage of the Roth IRA is that it allows you to take a tax break on the money you withdraw from the plan after retiring rather than when you put money in it (which means that you get a certain amount of tax-free cash). The other good thing about it is that you have much greater control over your money than in the case of a usual employer-sponsored account.
Even if you are just starting out on the road to investment and don’t have much spare cash to put in this or that, make sure you don’t invest everything in one area. Diversifying your money means you won’t get a nasty surprise whatever happens – your savings may suffer, but they won’t be wiped out in one fell swoop.
And remember – the time to start investing is now. The earlier you begin, the greater returns you will get.