What Are The Best Investments For The Rest of 2020?
It’s very important to think about your future and figuring out where you can invest your money for the best return. Every person has a different idea when it comes to what would be the best investment for themselves and their family. Normally, long-term investments are the best option because they tend to bring you the most money. However, these can also be risky, since a lot of things can happen in the meantime. With that in mind, here are some of the main long-term investments you can focus on in 2020 if you want to maximize your profits.
When you think about long-term investments, real estate seems like a no-brainer. You get the opportunity to invest in something that will bring you an extraordinary return. Most real estate properties will usually offer a pretty good return, so this is a safe investment when compared to others. It can still be risky, based on the property you buy and where it’s located. But if you pay attention, study the market and really take your time, things can be pretty good in the end. You just need to stick to your guns when it comes to investing and really know what angle to pursue and what options are better for you.
Since this is a booming industry, the chances of getting rich in real estate can be quite high. One thing to consider is that you can invest in retail, manufacturing and hospitality real estate, not only residential. Keep your eyes open for all kinds of real estate investments, as they can bring you some incredible results.
A lot of people that want to start investing their money in 2020 look to equity funds. These are considered a must-have for most investors, just because they help you diversify your investments. However, this comes with some risks, as you can imagine. The best rule of thumb is to opt for well-diversified funds that have a good long term track record. The investment horizon needs to be around 5 years, and things should work out well for you. Rushing won’t help in any way, you need to focus on the best results and value if you really want an amazing experience.
Robo Advisor Portfolio
It can be a good idea to invest in this just because you don’t need a lot of investing knowledge. The main focus with tools like these is to automate the investing process for you. It sounds like a great idea to be honest, especially if you’re busy or without investing experience. Betterment and WealthFront are widely known in this field and they do a very good job at helping you maximize your profit even on small investments.
The risks you get here usually relate to what you are investing in and also how you choose to invest. If you acquire lots of stock funds you can definitely see varied results when compared to holding cash in an account or just buying bonds in the first place. Is it a good investment idea? Yes, if you are ok with not having complete control over your investments. It can definitely be a worthwhile approach.
Roth IRA CDwhen you invest in the IRA CD, the main focus is to get a guaranteed income. There are no chances of losing, which means you will also avoid interest taxes. However, the catch is that you have to stick to the plan rules and that alone can be very important to keep in mind. The idea that you don’t have to risk anything and you get paid when the CD matures really goes to show the value of this investment. The FDIC guarantees up to $250000 per depositor. If you want to invest but dislike risks, then this is by far one of the most important aspects to take into consideration.
You will find lots of growth stocks out there, and many of them are appealing to investors. These growth stocks are stocks from companies that want to generate long term value and growth. You need to keep in mind that companies like these don’t pay a lot of dividends. On top of that, the stock price can differ quite a lot. Since you’re not paid in dividends most of the time, the main thing is to figure out when to buy and sell these stocks. It requires a lot of strategic approaches, but it can actually offer great results and that’s the thing to pursue with this type of investments.
These are very similar to mutual funds, but they are passively managed. They are invested in an underlying index like the S&P 500. ETFs will try to match the underlying index allocation. However, the thing you need to take into consideration here is the fact that they are lower cost. There’s a trader commission to deal with. However, trading costs are pretty low, and you get a very specific market exposure. It’s certainly worth the effort, and you want to give that a try for yourself in order to obtain the best possible results.
Hard assets are those items that usually keep their value in the long run. A good example of hard assets include things like gold, silver, diamonds, art and so on. Many of these will keep their value or even increase in price. Just like any other investment, you need to study the market and see what you can possibly expect. Even in these cases you can expect some fluctuations, it’s the way the market works. Once you know how that happens and what results to expect, the payoff can be very impressive. Basically, if you know what to collect and set aside, it can increase its value quite a bit in the long run.
Your 401K (USA) or RRSP (Canada)
The 401k or RRSP as they are known in Canada, was created with the idea of helping people set money aside for their retirement. It’s your prize that you get after an entire life of constant work and investment. The way you make the most out of this is to get on it early and then you need to grow it in the long run. If you start faster, you will get to put more aside, and you will have more money to withdraw in the end. The government also offers you some tax benefits if you invest in the 401k or RRSP, so it makes a lot of sense to just give it a try for yourself and see how it works. You will be incredibly impressed with how much you can set aside for your retirement this way.
You want to go all-in on the Small-cap stocks because they are rather inexpensive and there’s a potential to see plenty of growth. Investors need to capitalize on this type of investment because they get to be a part of an emerging market in the long run. Amazon was a small-cap stock in the beginning, and those investors that got in early are extremely rich right now.
Of course, that doesn’t mean these investments come without any risks. If anything, it’s just the opposite. They end up being volatile and the prices can fluctuate. Since these are small businesses, there is the potential to lose your money if the company itself is not doing that good in the first place. You need to study the market as much as you can and assess all their pros and cons before you commit to such an investment. It’s definitely risky, but as we mentioned already it can pay off big time.
While dividend stocks are not as powerful as growth stocks, the idea here is that you’re going with an established business that gives you a proper ROI. You receive a regular cash payout, there’s no need to worry about risks, and that can be very helpful. Obviously they can still rise and fall when it comes to value, since nothing is going to retain its price in the long run.
For the most part however, these are more established and mature, which makes them safer for investors. That doesn’t mean you will always be safe, but for the most part the ROI you get will be pretty impressive, and that’s what you want to take into consideration. It will require a bit of research anyway, because some dividend stocks are a better option when compared to others. It’s still the type of investment that will become well worth it in the long run.
In the end, it’s easy to see that you can invest in many things nowadays. Some of them offer short term results, others are more suitable for the long run. One thing is certain, you should always invest your money, as this can bring you outstanding returns. Yes, every investment carries its fair share of risks, but you will end up with amazing returns if you do this correctly. Just take your time, study the market as much as possible and make the right investments that will give you the best return in those years to come!