Sometimes, it can seem daunting to start investing in the stock market. There’s a lot of information out there, from do-it-yourself platforms that require users to manage their own portfolios (e.g., Wealthfront), or financial advisors who charge monthly fees for their advice and guidance (a good example is Robinhood). However, there are a lot of other options out there that don’t require you deal with all the legwork yourself. Here are some great ones:
Here are Top 9 Ways to Invest Money:
1. High-yield savings accounts
You might want to do some research on high-yield savings accounts. There are plenty of reputable banks out there that offer these services, such as Ally Bank and TIAA Bank. Additionally, many credit unions offer high-yield savings accounts too. It’s always best to compare rates before signing up for one account or another. Always try and opt for the highest interest rate possible with your funds!
2. Short-term certificates of deposit
Short-term CDs offer fixed, higher yields for a minimum investment of $1,000 with a term typically lasting between three months and five years. Like other types of CDs, you will have penalties for withdrawing the money before the maturity date. Some short-term CD offers may also come with early withdrawal penalties if they are made within a year of opening. Longer terms mean lower rates but a safer investment that won’t spike up or down as much during a market correction.
3. Short-term government bond funds
Below are ten of the best short-term government bond funds:
1. Vanguard Short-Term Investment Grade Fund – VFSTX
2. Fidelity Government Cash Reserves – FGFXX
3. TD Ameritrade Total Bond Market Index Fund – TMFZX
4. JPMorgan Short Duration U.S. Treasury Index ETF – OSTIX
5. BlackRock Enhanced SHORT TERM ULTRA BOND ROTATION PORTFOLIO Fund ETF – BDVIX
4. Series I bonds
Series I Bonds are a great choice for investors looking for long-term returns. These bonds can be purchased online and often come with a built-in inflation guard, which adjusts the principal every six months based on changes in the Consumer Price Index. In addition, there is no capital gains tax when you redeem your Series I bond; rather, there is an interest credit applied that’s based on the bond’s current rate.
5. Short-term corporate bond funds
Short-term corporate bond funds are a great way to get started with investing because they are very accessible, typically low-risk, and only last for a few years. Also, they provide much better returns than putting your money in the bank, though you have a higher risk of not getting your full investment back. Short-term corporate bond funds are also safer than investing in individual stocks since you aren’t dependent on just one company for your income. A drawback is that short-term corporate bond funds charge an expense ratio which means that some of the interest from the investments goes to paying operating costs. So you may want to explore other options if you can’t handle this expense or if it’s the difference between having enough or not enough.
6. Bank fixed deposit (FD)
Choosing the best bank fixed deposit to save your money in is essential. However, there are many options for FD and it can be a daunting task to find the right one for you. To help with this, follow these guidelines for choosing an FD:
-Put as much of your savings into the bank fixed deposit (FD) as possible – this will minimize risk by ensuring that all of your eggs are not in one basket.
7. Dividend stock funds
The Senior Citizens’ Saving Scheme (SCSS) was introduced in 1995 by the Ministry of Finance, which is a government agency that allocates and manages the public funds in Singapore. There are two types of schemes that SCSS offers, which includes the Regular Savings Scheme and Accelerated FAS (AFAS). The Regular Savings Scheme allows a senior citizen (at least 55 years old) to set aside any amount up to S$30,000 per year under this scheme. AFAS is specially designed for those seniors who have saved up less than S$300,000 under the Regular Savings Scheme.
8. Real Estate
What better way to spend your money than on a piece of property? Buy a house, buy some commercial real estate, or become a landlord. The best time to invest in real estate is when it’s cheap and has room for capital gains. With everything else so unpredictable, real estate prices have remained stable and will continue to rise with inflation.
Cryptocurrency – For a short time in 2017, bitcoin reached almost $20,000 per bitcoin and it is still worth around $10,000. The problem with cryptocurrency is that the currencies are largely unregulated and there are not many safe places for you to keep your holdings like a bank account. Some crypto exchanges have been hacked and people have lost tens of thousands of dollars because they used their exchange as their sole holding place for coins.