Investing is very important to a lot of people to be able to enjoy a comfortable future. It is something that can provide you with another source of income and as well as help you in funding your retirement. Your investments can also help you in getting out of a financial issue in the future. And above all, it will help you in growing your wealth, helping you achieve your financial goals.
However, when it comes to investing money, you need to think carefully about what you should invest in. There are many ways to invest today, from safe choices like money market accounts to medium-risk options like corporate bonds, and as well as higher-risk choices like growth stocks and real estate. Having a lot of options is actually great because it will enable you to find investments that offer different returns and fit your risk profile.
If you are thinking of investing this 2021, what do you think are the best investments for this year? Well, no one can really tell about the future, right? But you can always look at the trends and make some bankable plans. If you are wondering what you can invest in 2021, then here are some of the best ones that we can suggest.
Real Estate Investment Trusts (REITs)
Real estate is proven to be one of the best investments of all time. However, owning properties is more like an occupation as it is an investment. Also, buying individual properties is capital-intensive. This means that it can leave you open to tenants not paying rent, and as well as months of missed income between rentals. If you are looking into investing in real estate, but you don’t want to sacrifice your life savings, then one of the best ways is to invest through real estate investment trusts or REITs.
With the increasing geopolitical tension and an unresolved trade war, there are two fairly stable sectors to give consideration to this 2021, and they are utilities and real estate. Through REITs, you will be able to own real estate, and these holdings continue to reward with a stable dividend yield while maintaining low volatility. REITs are also not vulnerable to the trade tariffs because real estate is not reliant on imports.
A real estate investment trust is similar to a mutual fund that holds individual properties. They usually focus on certain sectors, such as retail space, office buildings, storage facilities, and warehouses. But this 2021, the best pick is probably apartment real estate trusts. Since the prices of houses have been rising beyond the range of affordability in many of the people with the best jobs, renting has become the more popular housing mode of choice.
Money Market Accounts
A money market account is a Federal Deposit Insurance Corporation or FDIC-insured and interest-bearing deposit account. Compared to savings accounts, it typically earns higher and requires higher minimum balances, as well. Money market accounts are relatively liquid and earn higher yields. It is a great investment this 2021, and also a great option for your emergency savings. However, in exchange for better interest earnings, you usually have to accept more restrictions when it comes to withdrawals. This includes limits on how often you’ll be able to access your money.
Money market accounts are a good investment option for those who are beginners in investing and need to accumulate a little cash flow and set up an emergency fund. For this option, inflation is the main threat. It’s because if inflation rates exceed the interest rate that you earned on the account. This means that your purchasing power could be lessened. Aside from that, there’s also a possibility to lose some or all of your principal, if your account is not FDIC-insured, or if you have over $250,000 FDIC-insured maximum in any one account.
Government Bond Funds
These are mutual funds that invest in debt securities. They are issued by the United States government and its agencies. It is a great investment if you are a low-risk investor. It is also perfect for beginning investors and those looking for cash flow. This kind of investment is considered to be one of the safest investments because securities are supported by the full trust and credit of the U.S. government. But it is also subject to risks like inflation and rate fluctuations. If you’re from other countries, for example, in Thailand, you can see the best way to invest in Thailand.
Side Business Investments
Investing in a side business this 2021 is also a great idea because there are so many ways to do it that don’t need large amounts of money. You may need to invest a few hundred dollars or a few thousand dollars, but the extra income that you’ll get from it can pay you back a lot of times over. People have a lot of reasons for starting a side business. The most popular reason is to generate extra income. There are also some people who feel stuck in their regular jobs, and a side business helps them in doing something that they enjoy.
However, one of the challenges of starting a side business is deciding what you want to venture into. You can put your specific skills and talents to good use and start a business using them. There are also some who are trying out gig work, just like becoming a rideshare driver. Try to think about the tasks that you do on your job daily, and as well as non-business skills you have. Ask yourself if there’s a way that you can sell your services directly to small businesses or to consumers.
The great thing about investing in a side business, aside from the lower upfront investment, is that it’s a very low-risk way to open a business. This is because you will still be earning from your full-time job. Meaning, you will have more time to get your side business up and running. And if ever the side business does not generate income right away, you won’t be ending up in the poor house. Therefore, if you are feeling stuck in your job or if you are looking for ways on how to generate extra income, then starting a side business is the best investment that you can make in 2021.
Self-Investment
Investing doesn’t only mean putting money in businesses and establishments to earn extra income. It’s because you can also invest in yourself, which is also a great idea to do this 2021. There are two ways that you can invest in yourself. One is to acquire skills and certifications that can help you advance in your current career. The other one is to acquire skills and certifications that will help you launch a new career or business.
One of the major reasons why people get stuck in a certain job is the lack of qualifications. Sometimes, just one certification will enable you to advance in your career field and earn more. How can you invest in yourself to learn skills and certifications? Well, this can be through taking college courses, online courses, and as well as participating in programs that are offered in your company or industry. And if you do not want to spend that much, you can easily learn new skills just by watching videos on YouTube.
Whichever choice you make, all of them will require you to invest your effort, time, and a certain amount of money. But it’s worth it as it will also help you get a promotion or increase your earnings at work. Or, if you are no longer happy in your current job, learning a new skill and acquiring certifications will also help you get a new job or enter a new field. Remember that the job market today is in a constant state of change. And to be able to remain relevant in your job, you need to keep yourself and your skills on the cutting edge. When you invest in yourself, you’ll be able to be prepared for whichever outcome.
These are some of the best things that you can invest in 2021. Investing is indeed a great way to build your wealth over time. It may seem daunting at first, but once you get the hang of it, you’ll be able to manage your own assets. Investing is not only for rich people. With the many options available, you’ll be able to start investing even if you don’t have a lot of money.