Are you looking to get into fintech investment bank, but wary of all the volatility that’s out there on the market? Do you wish to invest your money in practical, long-term investments? If so, then you should start by learning all that you can about the safest investments out there.
As you might imagine, there are some investments that are safer than others. While they might not yield high returns at first, their staying power will help you get a great return on the long haul.
See below for a list of some of the safest investments that you can make in today’s marketplace. We promise you won’t be disappointed!
This one makes total sense, right? Everyone sees the value in gold. There are a ton of applications for gold. This material even started an era known as the Gold Rush of 1949, for Pete’s sake.
But when most people think of investing in gold, they envision people exchanging cash for gold bars. While that’s certainly one way you can go about doing that, there are more convenient (and more secure) ways in this day in age. This includes such things as:
- Purchasing gold bullion: This allows you access to buy gold but comes with the burden of keeping it safely stowed away. It’s perfect for those that fear the stock market crashing
- Investing in Gold ETFs: This allows you to track gold as a commodity. You can purchase and sell your shares without having to own physical gold
- Purchasing stock in mining: Investing in the material of gold isn’t your only option, you can also buy stock in the mining companies that produce it.
But which one of these is the best option? Only you can say! Make sure to consider your situation and pursue the path that best fits your preferences. Whatever method(s) you choose, investing in gold is always a safe choice.
2. Housing Rentals
No matter which way the market turns or what current events are taking place, there will always be a need for people to have a roof over their heads. That’s what makes investing in real estate such a safe long-term investment.
Of course, there are certain components to that… you need to know when to invest in it, what to look for in a property, what all moving parts it requires, etc. That said, you don’t need to be a real estate expert to invest in property.
For example, you could invest in rental property in Punta Gorda, FL, then hire a management company to take care of the maintenance, bookings, etc. As the owner, you get a cut of all the profits you make from rent.
You might even decide to cut out the middle man and take on the landlord responsibilities yourself, which can lead to an even higher return on your investment!
The real estate market is currently experiencing an unprecedented time. Demand is higher than ever before. While that might mean that the asking prices are higher, it also allows for the opportunity of getting a lower mortgage rate.
Once you purchase a rental property, it’s all yours. That’s the power of a viable long-term investment!
3. Mutual Funds
Perhaps some of you are more interested in finding a viable investment to save up for retirement. If so, then mutual funds are your best option by far.
If you’ve ever invested in an Individual Retirement Account (IRA), then you understand the concept of mutual funds. You and other investors place your money into purchasing a variation of bonds, stocks, etc.
The primary idea of this is to capitalize on compound interest. By investing in those stocks and bonds, you’re allowing your earnings and contributions to unlock the power of compound interest over a longer period of time.
Make sure that you invest in IRAs or Roth IRAs to unleash the magic of compound interest in your portfolio. This allows you the opportunity to invest in riskier stocks elsewhere and still have your future protected.
4. Focus on Dividends from Stocks
Imagine having someone pay you for your investments in their company. That’s the exact concept of investing in dividend-paying stocks.
If you’re buying stocks with the intent of holding on to them for a long period of time (years), then investing in dividend-paying stocks can be of great benefit. They will give you pash payments to all shareholders of their company.
For example, let’s say you invest $30 per stock of a cold storage company. Then, as a dividend, you receive small payments of $.08 per stock from the company every so often.
5. Certificate of Deposits
Certificate of Deposits, commonly known as “CDs” is one of the best investments you can make in terms of security.
When you invest in a Certificate of Deposit, you’re placing money away that you don’t need for a very long time. They are insured by the FDIC and allow you to commit to a pre-determined timeframe to keep your money safe.
That said, if you ever try to take money out of them before that date, you will be paying a huge penalty on them. Find some money to put away for a while and reap the benefits of compound interest.
Consider The Safest Investments for Your Portfolio
Now that you have seen an in-depth guide on the safest investments that you can make, be sure to use this information to your advantage.
Take the time to browse our website for more articles on smart investments, as well as many other topics that you will find helpful.