Best Investments That You Can To Do In 2019


If you have a lot of money in your bank account, then you need to invest it. Investing will help you increase your overall wealth. It will also be a significant source of income after your retirement. Investments will help you improve your purchasing power. All you need to do is invest your money in the best investment in 2019 mentioned in this article. And let the money work for you instead of you working for money. There is much best investment in 2019 that one person can start investing in. If you are a risk-averse person, you can go for CDs. However, if you like taking a risk, then you should invest in growth stocks. The best option is to invest in multiple financial instruments. They will give you a better return and reduce the risk. You can create a portfolio that eliminates all market risk. So, we will now see some of the best investments in 2019.

Certificates Of Deposit- Best Investments

The best investment in 2019 starts with CDs. Banks are the ones that issue CDs, and they offer better interest rates than savings accounts. For a specific period, you will invest your money in CDs. Financial institutes will regularly pay you interest on the amount deposited. Also, you will receive your entire amount at the time of maturity. CDs are very safe and have a low-risk. However, it has liquidity and reinvestment risk.

Best Investments That You Can To Do In 2019
Best Investments That You Can Do In 2019

Money Market Accounts- Best Investments

A deposit account that pays interest is a money market account. The interest-based on the current interest rate in the market. The interest rates paid are higher compared to the savings account. However, you will require to maintain a higher minimum balance in your account. MMA is better than CDs as we can withdraw anytime. MMA is the best way to start investing in 2019.

Treasury Securities- Best Investments

The US government issues treasury securities. T-bills are issued to raise funds for the government. Treasury bills or T-bills usually mature in one year. This investment does not provide you with interest rates as the previous two. Instead, you buy the T-bills at discounted rates, and then the government pays the face value at maturity. The difference in the purchase price and selling price will be the profit. T-bills are the only investment which is a risk-free investment.

Government Bonds Fund

One of the best investments in 2019 is a government bond. A government bond is a debt security mutual fund issued by the government. This investment pays periodic interest payments called coupon payments. They are considered a low-risk investment.

Best Investments That You Can To Do In 2019
Best Investments That You Can To Do In 2019

Municipal Bond Fund

The significant difference being the state or local government issues municipal bonds. They have low-risk provide a diversified exposure in the portfolio. Individual bonds do carry default risk, and the issuer might terminate the bonds before maturity.

Short Term Corporate Bond Fund

Similar to government bonds, corporations issue bonds to raise funds. The average life of these bonds is two to five years. These bonds provide regular periodic cash flow. Hence, it is a reliable choice for investment. You can trade the bonds every business day, therefore its quite liquid.

Dividend-Paying Stock- Best Investments

Dividend stocks are companies that pay dividends regularly. Companies will pay dividends quarterly, half-yearly, or annually. The long-term investment is the best to realize maximum profit from these stocks. Dividend stocks should be considered a moderate risk investment.

High-Yield Saving Account

The best and low-risk investment is the savings account. FDIC insures your saving accounts. Highly liquid, which means you can withdraw anytime you want. Also, there is no risk of reinvestment.

Growth Stock

Another best investment in 2019 that you can do is invest in a growth stock. They include the most common shares available in the stock market. These stocks can give as much as a 20% return, depending on the market. However, these stocks are quite volatile and risky.

Growth Stock Fund

If the investor is unable to analyze the company or the market. They should consider going for a portfolio of a growth fund. A diversified portfolio will help reduce risk and give high returns. These funds are highly liquid, and you can opt-in, or out anytime you want.

S&P 500 Index Fund

Instead of a growth stock fund, investing in the S&P 500 fund will give you a higher return. This fund consists of 500 largest successful American companies. S&P fund is the least risky compared to other stock investment options. S&P funds are also highly liquid.

REITs

The real estate investment trust is a company that owns income-producing real estate. REIT provides income to their shareholders in terms of dividends. It is recommended to go for publicly traded REITs only. Similar to the S&P 500, this option is also highly liquid.

Rental Housing

Housing rental can be an excellent investment if you can manage real estate. It requires a high investment to purchase the property and maintain it. Rental Housing is the least liquid option. To earn a high return, you will need to keep the asset for a long time.

Nasdaq 100 Index Fund

Nasdaq fund is similar to the S&P 500 Index fund. The Nasdaq fund consists of the top 100 largest companies. Hence, they are the most successful companies. This fund offers high diversification; therefore, the risk is low. Nasdaq fund is a significant start for your best investments in 2019.

Industry-Specific Index Fund- Best Investments

In this option, you can choose the company that you want to invest in and create a diversified portfolio. This fund will give you a low risk. This option is highly liquid, and you can remove cash whenever you want. These are the best investment in 2019 choices that you have.

Conclusion

Everyone has to start investing to maximize their wealth over time. You can choose from multiple options, with high-risk, high return stocks to low-risk bonds. Creating a portfolio of various instruments will help reduce risk. If you have some money in your account, then it’s time to start investing.

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