12 Best Investments To Buy Now
Your investment options go far beyond just stocks. And many types of investments are accessible to anyone regardless of age, income or career.
Someone close to retirement with a healthy nest egg will likely have a very different investment plan than someone just starting out in their career with no savings. Neither of these individuals should avoid investing. But they should choose the best investments for their individual circumstances.
Is today a good time to start investing?
Where to open a savings account:
High-yield savings accounts
Online savings accounts and cash management accounts provide higher rates of return than you’ll get in a traditional bank savings or checking account. Cash management accounts may pay interest rates similar to savings accounts, but are usually offered by brokerage firms and may come with debit cards or checks.
Certificates of deposit
A certificate of deposit, or CD, is a federally insured savings account that offers a fixed interest rate for a defined period of time.
Where to buy CDs:
Where to buy a money market mutual fund:
Money market funds
Money market mutual funds are an investment product, which are bank deposit accounts similar to savings accounts. When you invest in a money market fund, your money buys a collection of high-quality, short-term government, bank or corporate debt.
A government bond is a loan from you to a government entity (like the federal or municipal government) that pays investors interest on the loan over a set period of time, usually one to 30 years.
Where to buy government bonds:
Where to buy corporate bonds:
Corporate bonds are similar to government bonds, only you’re making a loan to a company, not a government. These loans are not backed by the government, making them a riskier option.
A mutual fund pools cash from investors to buy stocks, bonds or other assets. Mutual funds offer investors an inexpensive way to diversify by spreading their money across multiple investments to hedge against any single investment’s losses.
Where to buy mutual funds:
Where to buy index funds:
An index fund is a type of mutual fund that holds the stocks in a particular market index (e.g., the S&P 500 or the Dow Jones Industrial Average). The main aim is to provide investment returns equal to the underlying index’s performance, as opposed to an actively managed mutual fund that pays a professional to compile a fund’s holdings.
Exchange-traded funds (ETFs)
Exchange-traded funds, or ETFs, are like mutual funds in that they pool investor money to buy a collection of securities, providing a single diversified investment.
The difference is how they are sold:
Where to buy ETFs:
Where to buy dividend stocks:
Dividends are regular cash payments companies pay to shareholders and are often associated with stable, profitable companies. Dividend stocks can provide the fixed income of bonds as well as the growth of individual stocks and stock funds.
Keep in mind:
A stock represents a share of ownership in a company. Stocks offer the biggest potential return on your investment while exposing your money to the highest level of volatility.
Where to buy stocks:
Where to buy alternative investments:
If you’re not investing in the stock, bond or cash equivalent instruments, there’s a good chance your investment is part of the alternative assets class. This includes gold and silver, private equity, hedge funds, cryptocurrencies like Bitcoin and Ethereum, and even coins, stamps, alcohol and art.
Real estate investing involves buying a property and selling it later for a profit, or owning property and collecting rent as a form of fixed income.