With the help of an investment portfolio, individuals and business leaders can work towards their financial goals. If you’re looking to improve your financial health, there are plenty of investment opportunities that can help you to move in the right direction.
Many investment options have the potential to deliver returns in the long term. As you’re approaching retirement, you’ll want to secure a regular income to provide for your future. Using a diverse investment portfolio you can expand your future opportunities, and learn new things.
Your investment goals will of course depend on your financial circumstances.If you’re a beginner, you’ll probably be looking for lower-risk options. The majority of these opportunities are low-risk and suitable for beginners. Here you’ll also find some resources which can provide investment tips and tricks.
1. High Yield Accounts
One of the easiest ways to invest is to get yourself a high-yield account, it’s a type of savings account which generates interest on your balance. According to Investopedia, these accounts pay, ‘20 to 25 times the national average of a standard savings account.’ Generally, customers can get the best rates from online banks. When you’re looking for the best high yield savings account you should compare the interest rates, balance requirements, and initial deposit amounts.
2. Certificate Of Deposit
A certificate of deposit is a finance product offered by credit unions and banks. Customers are required to pay a fixed sum into their CD account and leave this amount in the account for a designated period. Certificate of Deposit accounts come with high-interest rates, allowing customers to earn money. Withdrawing the money before the agreed time frame results in a penalty. CDs are considered a less risky investment option than bonds or stocks. It’s best to shop around before you choose a CD, as interest rates can vary.
Cryptocurrency is a type of digital asset, these are digital coins that can be used as a payment method, or traded. Cryptocurrencies are not governed by authorities or banks, instead, they are distributed using blockchain, a type of ledger technology. The most widely used cryptocurrency is Bitcoin, other popular coins include Litecoin, XRP, and Ethereum.
Once you’ve chosen which cryptocurrency you’d like to invest in, the next step is to choose a platform. A few of the leading platforms include eToro, Gemini, and Coinbase. Before you get started, you’ll want to learn all you can about cryptocurrency. Focus on how to Earn interest on your crypto, and keeping your cryptocurrency secure.
4. Investment Apps
Investment apps are a great starting point for beginner investors. There are plenty of suitable apps, here are a few of the most popular options:
The Acorns app makes it simple for anyone to start investing. You can use the app to invest your spare money, automatically. The tool allows you to set up recurring investments, and build a great portfolio. Acorns can help you to save for your retirement, and for your kids.
The TD Ameritrade app can help users to trade stocks and ETFs. Using the app you can get helpful charts, price alerts, and streaming quotes. It’s easy to make transfers and deposit funds whenever you need to. The app includes educational content so you can learn about investing strategies, options, stocks, and more.
5. Balanced Funds
A balanced fund includes both bonds and stocks, these funds are a type of mutual fund. When an investor chooses a mutual fund, they are generally looking for both income and growth. These funds tend to include both medium and high-risk elements together. There are several advantages of investing in balanced funds including:
- A rebalanced and diversified portfolio.
- Less volatile than some other investment opportunities.
- Tend to be relatively low risk.
6. Treasury Securities
Treasury securities are sometimes called savings bonds, these are a great place to store your money, and earn some interest. These aren’t big investment opportunities, but a super-easy way for beginners to get started. You can get different treasury securities, all which have different maturities and lengths. These categories include T Bills, T bonds, and T notes.
7. Retirements Plans
If you haven’t already, paying into a retirement plan is a great way to start investing. There are plenty of options that you can choose, depending on your circumstances.
These retirement plans are offered by employers. The employee pays into their account, and then the employer matches the contributions (up to a certain amount). There are Roth accounts, and traditional 401(k)s, the accounts are different in the way that tax is calculated.
8. Individual Retirement Account
An IRA allows individuals to invest and save for their retirement. These accounts include tax advantages, to help improve your financial health. Before choosing an IRA, it’s best to research the different options.
These plans are designed for entrepreneurs, the plans have special features catered to the role of the employee and the employer. According to Bankrate, ‘elective deferrals of up to $19,500 can be made, plus a non-elective contribution of up to 25 percent of compensation.
9. Real Estate Investment Trusts (REITs)
Real estate investment trusts can provide excellent investment opportunities. REITs work by owning or managing real estate to generate an income. REITs can involve the mortgages on properties, or the actual properties. Individuals can invest in companies directly, or use ETFs or mutual funds. There are various types of REITs including retail REITs, historical returns, or mortgage REITs.
10. Peer To Peer Lending
Peer-to-peer lending allows individuals to offer loans to their peers, without going through a banking institution. Sometimes the process is called ‘crowd lending’ or even ‘social lending’. Many P2P lending companies connect investors to borrowers. A few of the leading P2P lending companies include Prosper, Peerform, and Funding Circle.
By becoming a peer-to-peer lender, you can generate an income on loan interest rates.
11. Small Business Investments
Looking for an exciting investment opportunity in 2021? Then consider investing in a small business. There are lots of websites that you can use to find entrepreneurs. One great example is Worthy Bonds, by joining Worthy, you can earn an interest as you help small businesses to thrive and grow.
As you can see there are plenty of investment options to improve your finances and grow your savings. When you’re learning the ropes, you’ll want all the good advice you can get. The following resources are useful to learn about investing or to manage your portfolio.
Resources to inspire
Invest Like The Best
The Invest Like The Best podcast explores plenty of investment methods, ideas, and stories. If you’re looking to invest your money and time more productively, you’ll find plenty of tips here. Each week you’ll get to hear expert interviews from the likes of Marc Andreesen, Howard Marks, John Harris, and more.
Throughout the Sound Investing podcast, Paul Merriman explores a range of different investment topics. Recent episodes have covered themes like, ‘investing myths debunked’, ‘index market funds’, and ‘lessons from my favorite investing book’. Paul interviews a range of special guests, to bring you expert data, and a range of interesting insights.
To keep up to date with the latest investment news, MarketWatch is an excellent resource. The app delivers market data, financial info, and business news. Here you’ll get info about analysis, stock prices, and index movements. Access real-time data to learn the latest about the stock market. Using MarketWatch you can learn plenty of educational info, whether it’s retirement planning, personal finance, or politics.
The Bloomberg app provides handy info about finance news, the stock market, cryptocurrency, and more. You can use this app to track your portfolio and receive financial alerts. If you’re looking for the latest news, or want to check your investments, you can do both using Bloomberg. There are plenty of features to take advantage of including:
- The latest trending stories
- Valuable market data
- Portfolio tracking
Personal Capital App
Using the Personal Capital app you can track your investments, finances, and retirement. You can access your accounts, investments, funds, stocks, all from one platform. With the help of the retirement planner, you can plan your finances, or chat with expert financial advisors. Using the app you can take advantage of features such as:
- Cash Flow Tools: Check out the cash flow graph, to check out your total expenses and income.
- Monitor your investments: See how your investments are doing, and make improvements over time. Compare your portfolio, and work towards your financial goals.
With so many options out there, there are so many opportunities to grow your investment portfolio. Before you make a start, it can be useful to set a few financial goals. Learn as much about the investment world as you can, to help you make informed decisions. There are plenty of ways to secure your financial future. If you’re not sure how to get started, consider meeting with a financial advisor.