Investing your money can be a savvy way to plan for your future, but how do you know where to invest and when is the right time to do it? Identifying viable investment opportunities is the key to acquiring a decent return.
Similarly, the amount of risk you’re willing to take may affect the investment opportunities which are available to you.
With this in mind, take a look at these top investment options for 2019…
#1 Real Estate
Buying property is a popular form of investment, and it’s particularly beneficial if you prefer to have your money tied up in something tangible. Typically, there are two common ways to invest in properties; buying them and reselling them or buying them and renting them out.
If you buy a rundown property, repair it and sell it on for a profit, you could make a return on the initial capital outlay, giving you an increased sum to purchase another property.
Alternatively, you can buy a property and rent it out to tenants for a fixed amount of time or for the foreseeable future. Depending on how to property market performs, you could gain a monthly rental income and see the size of your investment grow over time.
There are, of course, a number of other ways to invest in property, such as property funds and construction investments. Whilst real estate is seen as a reliable investment, it does carry risks. Buying property when the market is low can get you a good deal, but if you buy at the wrong time the value of your real estate could drop.
Despite this, real estate remains a popular investment choice for beginners and experienced investors. Take a look at your state’s regulations to find out what tax liabilities you could face, and then follow the market to decide when’s the right time to make an investment.
#2 Stock Market
Many people associate investing in the stock market, and there are millions of people who make returns by buying and selling stocks and shares. However, there are millions of people who make significant losses too. Even experienced traders can take heavy hits, so only invest what you can afford to lose.
If you want to try and mitigate the risk of investing in the stock market, you may want to opt for a low-risk fund. Rather than choosing your own stocks and shares, you select a fund based on the level of risk it carries. Similarly, you could choose a fund which only trades in US stocks or which focuses primarily on sustainable businesses.
Choosing a fund which is diversified means your investment will be spread across a number of firms and even sectors. This should prevent your investment from losing its entire value if just one company folds, as you’ll still have stocks in other firms.
However, each fund is different and is managed by a different person or company, so do your research before you decide how to invest in the stock market.
With plenty of information available online and courses designed to introduce new investors to the stock market, taking the time to learn more about the opportunities and pitfalls of stock market trading can be worthwhile.
#3 Buy Gold Bullion Online
Gold has been a popular investment for centuries, and it still offers a great return on your investment. Although the price of gold does rise and fall, many people feel that buying gold bullion is a relatively robust way of investing.
Whilst you can’t guarantee that you’ll get the cost of your original investment back if you can ride out any dips in the market, your bullion should hold its value or increase in the long-term.
Furthermore, if you buy gold bullion online you can opt to have the gold delivered right to you. Providing you have a secure place to keep it, many people prefer to have a tangible asset they can keep tabs on.
Of course, storing a valuable amount of bullion can be risky in itself. Always arrange a suitable storage area for gold bullion, so that your investment remains secure.
#4 Peer-to-Peer Lending
Although peer-to-peer lending is not a new phenomenon, it is becoming increasingly popular. If you have the cash to invest, you can lend it to people via peer-to-peer platforms and get your original investment back, plus the interest they’ve paid.
With peer-to-peer lending, there is the risk that your borrower won’t pay you back or won’t make their payments in full, and this could leave you out of pocket. However, there are plenty of companies which are trying to mitigate the risk for lenders.
Instead of lending to just one borrower, for example, you can spread your investment across a number of borrowers, so that there is less chance of you losing your investment if you’re hosted by a borrower.
Depending on the platform you select and the level of risk you’re prepared to take on, returns can be worthwhile. In some cases, it’s possible to obtain an interest rate of 5-6%, which could enable you to make a considerable return over time.
#5 Clear Your Debts
Paying off your debts may not sound like a very exciting investment opportunity, but it is one of the most effective financial decisions you can make. Whilst some debts may not need to be paid off straight away, such as mortgages, millions of people spend an unnecessary amount of money on high-interest loans, credit cards and hire-purchase agreements every month.
If you can clear this debt, negotiate better terms or consolidate the debt into a better monthly deal, you could save hundreds of dollars each month. As well as being a great way of investing in itself, this could give you the funds you need to try out another investment opportunity.
With so many investment choices available, it’s important to take the time to think about which ones could be right for you. If in doubt, seek professional advice before making any financial decisions and ensure you appreciate the risk associated with particular types of investment.
What are you doing to invest right now?