A secure and comfortable financial future is essential for most people. Knowing that you have something put away to help provide for you and your nearest and dearest as you reach retirement age is a peace of mind you cannot put a price on, OK, well actually maybe you can.
Although the current financial markets and the economic outlook is on rocky ground it should not be viewed as a deterrent to start saving, investing, and otherwise planning for your financial future. If you haven’t started already then here are some of the best ways you can invest your money in 2022 and start building that nest egg for your future.
Property
Global housing markets have been particularly buoyant of late and house prices are seemingly higher than ever. As an investor, this is not generally the time you want to start outlying your money into property. That said, there are two pretty significant caveats to that point.
Firstly, as discussed by Armand Candea there is currently a housing shortage, and as a result property development is expected to boom, with profits to match. As an investor, there are several ways you can get in on this action. If you can be part of the task force providing a house, whether you renovate a property or embark on a building project you are sure to do well out of it in the longer term. Alternatively, you could consider investing your money in a property development company, just be sure to do your due diligence on the company you choose.
Another way to invest in property is via crowdfunding platforms that offer all the benefits of gaining an income from a rental property, without the hassle of being a landlord. However, if you’re going down this route, make sure that you’re aware of the ins and outs of the process to avoid a potential lawsuit, such as a DiversyFund lawsuit, for instance.
High yield savings account
A high-yield savings account will pay you interest on your cash balance. Traditional high-street banks will offer savings accounts however if you make the switch to an online account you may benefit from a better rate of return. This is because, typically, online accounts have fewer overhead costs, which are then passed on to the customers.
A high-yield savings account is a great means of investment for risk-averse investors as it is generally viewed as one of the safest investment options. What is more, with interest rates rising now is a good time to be a saver.
Growth stocks
Growth stocks are a great option for long-term investors as they typically promise high growth and high investment returns. Typically a growth stock will be a tech company although this is by no means always the case.
There are however a couple of things to be aware of when it comes to growth stocks. Firstly they can be a riskier form of investment as the stock market is a volatile place and should a recession hit you could see the value of the stock depleted.
That said, if you are in it for the long term then growth stocks are typically the better performers over time. Secondly, as growth stocks tend to put all of their profits back into the business you shouldn’t expect to receive a dividend from the company, at least not until their growth slows.
Be safe out there.
Stanley
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