Investing your money can be a daunting task, especially when there are so many options available. A windfall of money provides a chance to grow your savings or fulfill a goal, but choosing the best place to stash your cash isn't so straightforward. With so many investment options available, it can be challenging to decide which ones are right for you. Here are our recommendations for the best investments this year, from cryptocurrency to REITs and everything in between.
High-yield savings accounts: High-yield savings accounts offer a safe and low-risk investment option. They typically offer higher interest rates than traditional savings accounts, allowing you to earn more on your money.
Certificates of deposit (CDs): CDs are another low-risk investment option. They offer a fixed interest rate and a set term, allowing you to earn a guaranteed return on your money.
Money market funds: Money market funds are similar to high-yield savings accounts, but they offer higher interest rates and are typically invested in short-term, high-quality securities.
Government bonds: Government bonds are considered one of the safest investment options available. They offer a fixed interest rate and are backed by the full faith and credit of the government.
Corporate bonds: Corporate bonds are another fixed-income investment option. They offer a higher rate of return than government bonds, but they also come with a higher level of risk.
Real estate investment trusts (REITs): REITs are a popular investment option for those looking to invest in real estate without actually owning property. They offer a steady stream of income through dividends and can provide a hedge against inflation.
Stocks: Investing in stocks can be a high-risk, high-reward investment option. However, if you're willing to do your research and take a long-term approach, stocks can be a great way to grow your wealth.
Mutual funds: Mutual funds offer a diversified investment option, allowing you to invest in a variety of stocks and other securities. They can be a great option for those looking for a low-cost, low-maintenance investment option.
Exchange-traded funds (ETFs): ETFs are similar to mutual funds, but they trade like stocks. They offer a low-cost, diversified investment option.
Cryptocurrency: Bitcoin and other cryptocurrencies have become a popular investment option in recent years. While they come with a high level of risk, they also have the potential for high returns.
Alternative investments: Prefer to grow your money outside the stock market? Check out alternative investment options to put your money to work for you without the volatility of the stock market. These options include private equity, real estate, and commodities.
Low-cost mutual funds: Data shows that investment portfolios with lower annual fees ultimately offer investors the best value. Many individuals have moved toward low-cost mutual funds, like those offered by Fidelity, as core portfolio holdings.
Safe investments: If you're looking for safe havens from tough markets, these safe investments offer lower risk than stocks. These include money market funds, CDs, and government bonds.
High-risk investments: If you're looking to grow your wealth through investing, you can opt for lower-risk investments that pay a modest return or you can take on higher-risk investments that offer the potential for higher returns. These high-risk investments include stocks, mutual funds, and cryptocurrencies.