by Susan Paige
Contrary to what most people think, investment goes far beyond stocks. Here, we discuss 7 alternative best places to invest money right now and make a profit.
Long gone are those days when investing was just a thing for the wealthy. Nowadays, having a solid investment is an essential thing for all people. Investing prepares you for tough times to come, but it also secures a comfortable financial future for you.
However, the economy is constantly experiencing bouts of high inflation. So, what investments can you really make in such an economy?
Well, here are 7 best places to invest money right now; investments that won’t require you to break the bank or force you to take huge risks:
Mutual funds are among the most recommended investments by the best stock research tools. They are an inexpensive type of investment, but they also allow investors to diversify their options. And the more investors diversify their investments, the lower their chances of experiencing losses.
Mutual fund investments are ideal for those with long-term goals, such as saving for retirement.
Certificates of Deposit
A certificate of deposit (CD) is a savings account that provides a fixed interest rate for a specified time. CDs are federally insured, and they hold a fixed amount of cash. You receive the cash you invested and the accumulated interest when you withdraw the money.
CDs are especially a good investment for those looking to grow money to achieve a specific purpose within a particular time frame. You can buy CDs at credit unions and online banks.
High-Yield Savings Accounts
Compared with checking accounts and traditional bank savings, high-yield savings accounts offer higher rates of return. There are two types of savings accounts with that you can invest money with;
- Online savings accounts are ideal for saving money on a short-term basis or money that you’ll need to access occasionally.
- Cash management accounts – These are account hybrids whose interest rates are similar to savings accounts. However, they are usually provided by brokerage firms.
Index funds usually provide returns equal to the current performance of the market index. This is contrary to the actively-managed mutual funds that outsource experts to manage the fund’s holdings.
Index funds are an ideal investment for people with long-term savings goals. They are recommended for young people in their 20s and 30s since they have a longer timeline to save and invest. In addition, they are more cost-effective and less volatile than the actively-managed mutual funds.
When you buy a government bond, you loan the government entity, like the municipal or federal government. The government then pays investors an interest over a specific period, say between 1-30 years.
Government bonds provide fixed-income security; they offer a steady and regular stream of payments. Even better, the investments are 100% backed by the U.S government. This makes them completely risk-free, such that even beginners with low-risk tolerance can safely invest in the bonds.
Corporate bonds work similarly to government bonds. The only difference is that your loan to a company with corporate bonds. In contrast, government bonds involve lending to the government.
Since they are not backed by the government, corporate bonds tend to be riskier. However, they provide higher yields than other bonds. Corporate bonds can be bought through a brokerage firm or an investment broker.
Money Market Mutual Funds
A money market fund is a fixed-income mutual fund that allows you to buy a collection of a short-term bank, corporate, or government debt. These funds provide a low volatile investment characterized by fewer risks.
This is an ideal investment to consider if you want to invest money that you may need soon. And when looking to buy the best money market funds, use the best website for stock analysis to determine those worth investing in.
Investing opens more doors of opportunity for you. For example, you get to increase your income stream, have somewhere you can run to in case of an emergency, and even secure your future. So try one of the above-suggested 7 best places to invest money and grow your wealth like never before!