Investing is one of the most important things that you have to do in your life. Investing can offer you with another source of income in the future. You can also plan a good retirement, especially after you are retired from your daily activities. There are a lot of instruments that are available today. It means that you need to choose the best investment tool for your needs now. You have to consider the risk tolerance and also time horizon, especially when you decide on where you are going to allocate your money for investment. Here are some of the best investments that you can make in 2019.
Certificate of Deposit
This type of deposit is usually issued by banks. This deposit usually offers a higher interest rate than the regular saving accounts. This time deposit is also insured by the Fed, so the risk of having this CD is actually pretty low. However, this certificate deposit has a specific maturity date. You cannot withdraw the money during this specific time period without penalty. When you have this deposit account, you are able to earn up to 2.4 percent of annual interest from this investment. It can be the best choice for retirees who want to lock up their money and get interested in this investment.
Government bond funds
Some people choose to invest their money in government bond funds. They are mutual funds that will invest money on debt securities from the US government and agencies. The funds usually invest in certain debt instruments, for example, T-notes, T-bills, T-bonds, and also mortgage-backed securities from the government. These funds are popular among many people because they are suitable for low-risk investors. Bond funds are highly liquid, but the values of these funds may fluctuate from time to time. The interest rate may fluctuate depending on the economic condition.
Short term corporate bond funds
Many companies are trying to borrow money by issuing bonds to all investors. Small investors can get access by purchasing shares of these short term corporate bond funds. Most short term corporate bonds usually have an average maturity of about 1 – 5 years. Corporate bond funds are suitable for all retirees who are looking for cash flow. These funds have a low risk, but they can offer regular income for all investors. You can buy or sell the bond fund shares every day. However, you need to know that the corporate bond funds are not FDIC insured. Therefore, you have to consider any risks that may come with these funds.
Dividend-paying stocks
If you want to invest your money in the stock market, you have to look at all available stocks. Some companies are going to pay dividends regularly. You can take advantage of this fact. You can purchase any stocks that pay dividends regularly. These dividend-paying stocks are usually safer than the growth stocks or other non-dividend stocks. However, you need to manage your portfolio very carefully. You should look at the history of any companies before you choose to invest your money in certain stocks.
Renting your property
This is a good investment choice for you who want to manage your own property. You need to choose the best property that is located in the prime location. Then, you are required to finance it for purchasing this property. When you are able to find the right property in the right place, you can rent your property to other people. Many people are looking for a rental house, office, or apartment for their daily needs. However, you should consider the risk of this investment. This property investment also has a lack of liquidity. If you need instant cash, you need some time to liquidate your property.
There are many other investment options that are available on the market now. Choosing the right investment for yourself should never have to be difficult for you. You only need to compare all the pros and cons of certain investments. You also need to take a look at the liquidity process of the investments, so you will never have to find any difficulties in getting your money back in the future. Choosing the right investment can help you grow the amount of money you have in your pocket.
