Places to invest in 2019
Saving money and your resources is something that has been ingrained into our minds from early on. Few people recognize the importance of investing in the right places to grow their wealth. Here is a list of places that are great for investments in 2019:
- Government bonds:
Government bonds are mutual funds for investing in debt securities. These are issued by the government agencies. Different debt instruments like t-bills, notes, bonds and mortgage securities come under this. Since these are issued by the government they can be great for investors who do not want to take much risk. Beginning investors or those who desire some steady cash flow can invest in government bonds. They are highly liquid in nature with values fluctuating as per the investment and interest rate.
- Corporate bonds:
Corporate bonds are those that are issued by corporations that raise money by issuing these bonds to investors. There can be several benefits of investing in a corporate bond. Small investors can get a lot of exposure by accommodating these shares of corporate bond funds. These are less likely to have fluctuating interest rates and thus can be a safer bet. This can ensure at least some constant cash flow for those looking for a safer investment. You can sell or buy these shares each business day. You can also re-invest the income which opens up rooms for additional investments.
- Municipal bond funds:
You can invest in a variety of municipal bond funds which are issued by state and local governments. The advantage of these lies in the exemption of any federal income taxes. The interest is also free from all state and local taxes. You can consult a financial advisor to find the right type of fund for you to invest in. Make sure you stick to only those that are prominent in your state or local regions to harness more tax benefits. The profits from this can be further re-invested to get additional benefits.
- Growth stocks:
Growth stocks have always been the investment category which has always benefitted the investors. These usually comprise of stocks from tech companies which are great for growing profits and sales fast. Instead of any cash distributions, re-investment is employed to make businesses grow faster and yield better profits. This is the reason why these are the most popular among investors. You can get up to twenty percent of returns in a period of a few years. However, you need to analyze the funds before investing so you can choose the right ones. Purchasing individual stocks can be a great idea for advanced investors since these stocks can be volatile. You can buy or sell any of these on the stock market days.
Renting houses can be a great form of passive investment. If you already have the property to do the same and are willing to rent it out the profits it can manage to yield can be substantial. You should make sure that your property is appropriate for this venture. Buying the right property, financing it and dealing with tenants and the maintenance are some tasks you will need to take care of. Once you have your assets well managed you can accumulate a strong cash flow. This can be great for retired professionals or people looking for a passive source of income. Rental housing is the least liquid investment. Setting it up might take time but the profits can be substantial.
These are few areas where you can place your investment in 2019 for a successful experience. Invest wisely and research well before placing your money in the said areas. The power of well drafted investment can make a significant different to your monetary stance.