Guest post contributed by Frank Malone
Have you thought about how you’ve been spending your money lately? If not, then it could probably be yielding greater returns. Strategic investments deliver the best results, even if planning for them feels intimidating.
Diverse portfolios are beneficial for anyone, regardless of long-term plans. So, investing in multiple asset classes would be our top recommendation. Here are a few classic options that ought to be in any portfolio.
Precious Metals
Other than tips for buying silver, searches for gold have been on the rise this year. Precious metals have been valuable since the dawn of human civilization, even the denarius had been made of silver. Our daily transactions use other means of exchange. But, plenty of people still store their wealth in the form of precious metals.
Precious Metals Investments
- Gold:
Currently, gold hovering near some of its historic all-time highs. Volume has been sustained, at least since the United States locked down. Since that time, prices have exploded by more than 30%. - Silver:
Silver’s spot price has been appreciating, but it hasn’t seen quite the same gains as that of gold. Most experts believe it’s among the most undervalued precious metal, at the moment, making it a potential moonshot. - Platinum:
Believe it or not, platinum has been nearly as great of an investment as either gold or silver. Industrial applications supply a baseline demand, so catastrophic price drops are unlikely.
Stocks and Bonds
Anyone who has listened to a financial advisor ought to recognize the terms stocks and bonds. In short, stocks represent ownership in some sort of private enterprise, typically a corporation. Bonds, on the other hand, are given to investors who purchase government debt. Of course, there is a lot more to these classes of assets than those two sentences, but that would be the fundamentals.
- Dividends:
Company profits are sent to investors who hold stock in the enterprise. Those returns are called dividends. Certain companies emphasize them so that their investors are richly rewarded. - 401(k)s:
Assuming you are a W-2 employee, your employer likely offers a matching contribution to your 401(k). Not taking advantage of that would be leaving money on the table.
Real Estate
One thing that unites everyone. We’ve all got to have somewhere to lay our heads at night. As such, real estate is considered to be an inelastic good, something with a demand that rarely drops. Everyone ought to pursue homeownership, but there are plenty of other opportunities in the real estate industry as well.
- Rental Properties:
Passive income is among the fastest paths to retirement. Renting out properties would be an easy way to start building passive income streams. - Homeownership:
All things considered, for the same home, a mortgage would cost less than rent. Whoever owns the property must generate some sort of profit. Otherwise, why would they be renting it out?
Cryptocurrency
Crypto is one of the latest financial innovations, based on cryptographic technology. They authorize transactions on a publicly accessible ledger system. Check out Meta if you’re looking for the best-decentralized crypto exchange. And, they’ve got a hard limit on the total supply, creating a form of artificial scarcity.
You’ll also want to look into a trusted company from which to buy your crypto. Independent Reserve (https://www.
Speculative Investments Might Pay Off Massively:
Early investors have been richly rewarded for betting on crypto’s success. Stories of returns 10X or greater have become common in that industry. Of course, for such sizable rewards, we don’t recommend it thinking about these assets as more of a speculative bet than anything else.
How to Make Your Money Work for You
Letting your money sit in a high-yield savings account may have been wise advice a few decades ago. But, today, you’ve got to use your money much more wisely if you’d like to outperform the market. Diversity is key when it comes to managing your portfolio, so don’t get stuck in a single asset class. Otherwise, a simple downturn could devastate your net worth.
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