Make yourself a mint with these tips.
Everyone likes the thought of investing; a good and sound financial strategy that yields a tidy little profit in the short to medium-term. And who doesn’t like a little bit of extra income on the side?
And there are a lot of people out there investing, more now in fact than at any time since the so-called Great Recession of 2007-08 and the resulting credit crunch. Back then, around 65% of Americans were dipping their toes (so to speak) in financial investment waters. But that peak was the forerunner for the precipitous decline that would follow in the next six years as more and more people were wary and unwilling to risk valuable capital in the investment marketplace after that very marketplace had turned out to be a hollow illusion built on sand and held together by what turned out to be very tenuous foundations, to say the least..
U.S. confidence in investments bottomed out in 2013 with a mere 52% still holding on to their existing portfolios. “Once bitten, twice shy” as the saying goes and it’s taken a solid decade for people to trust the market again, with 61% investing in 2023, the highest in 16 years.
So, if you’re one of those people who feel that it’s safe again to perhaps invest some of your money, with the prospect of a nice little financial return, then look no further; for the purposes of this article, we’ve consulted financial experts as to which investment portfolios are the best for John and Joan Q Public, and that advice has led to us listing 5 respective choices in investment that you might consider should you decide to go ahead.
Investments can be an individual endeavor or a joint team effort, but either way, please bear in mind that you invest at your own risk, that this website is purely advisory and cannot be held responsible for any negative consequences of your investment choices. That being said, let’s dive in, shall we…?
1. High-Yield Savings Accounts
For those who are newbies to the investment world and looking for a place to invest with a guaranteed return at minimum risk, then a High Yield Savings Account (HYSA) is probably your best bet, all things considered.
HYSAs are maximum-yield accounts wherein you receive a higher-than average APY than a traditional savings account, thus allowing you a solid return on your money without the risk of investing it. Shop around to see the best HYSA out there before committing, but don’t necessarily go for the one with the highest APY, always read the small print, especially when it comes to minimum balances and annual fees.
Choose from these options below.
2. 401(k)
Many Americans are dependent on their 401(k) as their primary financial lifeline for retirement and accrue a solid 401(k) portfolio throughout their working lifetime in advance of that looming retirement period.
Depending on the type of account, contributions from your salary towards your eventual 401(k) amount upon retirement can be either pre- or post-taxed. It’s recommended that you use a Roth 401(k) which taxes each contribution as it is added to the account, meaning you’ll know exactly how much you’ll be retiring on without the worry of hidden charges or the IRS calling after you’ve retired. Who needs that!?
Learn more below.
3. Short-term Certificates of Deposit
A sure-fire way to get a return on your initial investment is via a Short-term Certificate of Deposit account (CD). How does this differ from the aforementioned HYSA, you might ask, and how good a return will I receive back?
A CD is an account wherein you deposit a certain amount of money for a predetermined period of time with a higher-than-average APY, with account holders unable to withdraw any money from the account until it reaches maturity. Not only are CDs a virtual risk-free investment that pays off patience but they’re also insured by the feds for up to $250,000 per person.
Learn more below.
4. Money Market Accounts
Another low-risk investment strategy is Money Market Accounts (MMAs). This is a type of account again with a higher-than-average APY than traditional savings accounts, but with the distinct difference that unlike a CD, you can actually withdraw money from an MMA via a debit card or writing a check.
5. Stocks
The time-honored way for people to dabble in financial investment, but one that carries big risk with big reward so long as you know what you’re doing.
In buying stocks, you’re essentially owning a percentage of the company in question, and thus the more stocks you own in said company the more influence you have on its corporate decisions. It’s important to know not only which stocks to buy and how many, but also when to buy them. It’s recommended that, before you jump headlong into the deep end of stock investments, that you first try out the ‘paper trade’ simulations first, which will get you used to how the market works before you start putting valuable money into it.
Discover more below.
