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Today’s guest post comes from Greg Silberman. This is an informative piece about some of what may potentially be the best investment strategies in 2019.
Here’s More about Greg:
Greg Silberman is an experienced financial consultant based in Atlanta, Georgia. He has a good knowledge of the financial market, alternative investment market, the stock market and advises his clients based on that. He provides customized financial solutions to individuals, families, and institutions.
Best Investment Strategies in 2019
With a volatile end to 2018, investors may be looking for more stability in 2019. There are a lot of investment options flooding the market these days. If you are looking to invest for a period of less than 3 years, you may opt for short-term investment options. For a longer period of more than 10 years, long-term investment is the best option. However, it is important to choose the best long-term investment option to minimize risks and reap higher profits.
If you are wondering where you should invest your money in 2019, take a look at the best investment options:
The stock market is one of the most lucrative investment options. However, it is highly volatile. That is why you need to be updated with the current trends in marketing so that you have a clear idea when and where to invest. You can develop an investment strategy by evaluating your financial resources and condition.
Investing in stocks that pay dividends is a good idea. Dividends are shares of the company’s profit that can be paid to the shareholders.
Dollar cost averaging is a term that can help to describe the strategy through which you can invest the same amount of money every month. It is an important method that can help you to reap higher profits out of your investment.
It is a long-term investment option that is gaining huge popularity these days. However, you need to very careful while making the final deal.
These days, you can buy Real estate investment trusts or REITs. This is a good option as you can take advantage of the real estate markets without any hassles. There are various sites which allow you to invest in real estate shares or notes. However, it is important to choose reliable sites. You need to carry out thorough research and analysis to choose the best site. You can even take the help of professionals as they will help you to sign a profitable deal.
Certificates of deposit
Certificates of deposits, issued by banks provide a higher interest rate than savings accounts. Since they are time deposits, they have specific maturity dates which imply that you cannot withdraw your money for a specific period of time. You will receive the interest at regular intervals by the financial institution. After the Certificate of deposit matures, you will get the original principal along with the interest.
Certificates of deposits (CDs) are a good investment option. However, there is a reinvestment risk associated with it. You can consider laddering CDs i.e. investing your money in variable terms.
Money market accounts
Money market funds are interest-bearing accounts that help you to earn higher interest than the savings account. For emergency savings, money market accounts are the best option.
Money market accounts are more liquid as compared to other investment options.
Money market funds
Money market funds are great investment options provided by banks, brokerage, and mutual fund companies. They are stable and are regulated by the Securities and Exchange Commission. Money market funds offer check-writing and money transfer options for the shareholders.
The government issues various types of securities in order to raise money and clear the debts, known as Treasury securities. They are one of the safest investment options that guarantee no loss on the principal. When you invest in treasury securities, you will get interest every six months and then face value upon maturity. Treasury securities are considered risk-free investments as they are offered by the government. However, there are fluctuations in the interest rates and the value of the securities.
Treasury securities are highly liquid investment options.
Government bond funds
Government bond funds are issued by the government and its agencies. They are suitable options for low-risk investors as the funds are backed by the government. However, the values depend on the interest rate fluctuations.
Municipal bond funds
Municipal bond funds are the bonds issued by the state and the local government. The interest received in this case is generally free from federal income taxes. Municipal bonds can be bought individually, with a mutual fund or with exchange-traded fund.
A financial advisor can also help you in this respect. He will help you to get a better understanding of various investment options so that you can take the correct decision.
Short-term corporate bond funds
There are many corporations that earn money by issuing bonds, known as short-term corporate bond funds. They are stable and less susceptible to interest rate fluctuations.
Investment-grade short-term corporate bond funds can help the investors reap higher returns as compared to government funds or municipal bond funds. However, there are some risks involved with them. You need to understand the risks involved before investing in short-term corporate bond funds.
Peer to peer lending
Peer-to-peer lending is another platform that can help to you invest your excess funds. With this platform, you can spread your investment and get a fixed as well as stable income.
Peer to peer lending is a more flexible investment option which allows you to get a better interest rate as compared to other options.
Annuities are contracts made with an insurance company which allows you to invest a significant amount of money and get payments in exchange. There are two types of annuities such as fixed annuity and variable annuity. You can choose the best option that suits your requirements. Annuity risks vary according to the type of annuity.
Online checking account
Online checking accounts are similar to the traditional checking account. They offer minimal fees and higher yields than the traditional institutions. Most of the banks these days offer more than 1 percent APY on the checking accounts.
When it comes to liquidity, online checking accounts are highly liquid. However, it is important to choose a bank that provides easy access to ATMs.
You can even seek the help of a financial advisor to choose the best investment option in 2019. He will evaluate your financial condition and help you choose the most suitable investment option based on your specific requirements.
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