Many people tend to believe that making investments will help them lead a comfortable life in their present. Not quite the case. While short-term investments might help you, the entire purpose of investing is to secure your future. This is why you will hear a lot of financial experts say that if you plan your investments right, you can have a worry-free retirement.
Ever since the financial crash of 2008-09, the world’s economy has been growing handsomely. The nearly 12-year uninterrupted period of growth meant that stock markets were high, plenty of employment opportunities were there in the market, and start-ups were the flavor of the season.
The Coronavirus Pandemic brought everything to a screeching halt. Families and individuals that had previously invested were able to make use of their funds to tide over the two-year difficult crisis. Those that did not have any, faced a ton of financial difficulties.
In this resource article on financial investment, we discuss the seven best investments that you should be making in 2022. These investments can be considered short, mid, and long-term investments. Check out what we have to say!
List of 7 Best Investments You Should Be Making in 2022
1. High-Interest Savings Bank Account
For individuals that are averse to taking risks, a high-interest savings bank account makes a lot of sense. Banks are now offering up to 10% of interest on specific savings accounts. At the lower end of the scale, this rate varies between 7% to 6%. This will help you grow your money in your own bank account. This is a safe, secure, and credible way to make investments.
After the astronomical highs in 2021, cryptocurrencies like Bitcoin and Ethereum seem to be stabilizing and reflecting their real value. To be honest (with Bitcoin trading under $30K) on Bitcode Ai is a good time to pick up some cryptocurrencies. You need to make sure that you stick with them as long-term growth prospects and not fall prey to the FOMO in the markets.
3. Certificate of Deposits or CDs
Several financial institutions offer Certificates of Deposit or CDs. These offer an interest very similar to the ones you would find on the savings account, but with a higher percentage. Since they are issued by a traditional financial institution, you cannot go wrong with this in terms of safety. Many financial experts point out that the world’s biggest investors invest in CDs aggressively.
4. Government Bonds and Securities
Another low-risk high-return investment option that you can explore is Government Bonds. These are securities that government as a player invests in from the private markets. For example, the US government invests in Freddie Mac, a loan mortgage financing company. You can rest assured that government bonds are a safe investment option with decent returns.
5. S&P 500 Funds and Options
If you want to invest in blue-chip companies like Amazon or Warren Buffett’s Berkshire Hathaway, you need to take a long and hard look at the S&P 500. While the volatility is definitely there, you stand to make handsome gains if the market picks up. With the pandemic behind us and the world hungry for growth, this looks like a credible opportunity.
6. Nasdaq 100 Funds and Options
Following on the heels of the S&P, you have Nasdaq 100. This is a list of some of the biggest and most valued tech companies in the world like Meta, Netflix, Apple, and others. If you have been following the news, you would note how tech stocks have taken a severe beating from 2022. Financial experts say that playing the waiting game is a decent option here.
7. Residential Real Estate
The real estate market does not show any signs of slowing down. Even after the Fed increased lending rates, the FOMO syndrome seems to have gripped the real estate ecosystem. If you have cash lying around, now would be the best time that you to get your hands on some residential real estate. The market does not show any signs of slowing. This should be a great investment.
The Final Takeaway
Investing is not as easy as people make it out to be. You need to consider everything from the risk factor to the time period you would want to invest for. Most experts agree that having a balanced portfolio with some risky investments and some secure ones can help you with average to high growth. If you have any other doubts that on making investments, please let us know in the comments section below.