5 Investments You Can Do Today for a Secure Future

Investing is an essential part of wealth creation regardless of your income group or age. While accumulating money by working a 9 to 5 job may be the go-to-way for most people, this is not a feasible approach to achieving the much-desired ‘financial freedom’.

The primary reason for this is inflation which eats into your savings. Money loses its purchasing power over time, i.e. the 100 bucks you made 20 years ago won’t buy you the same things now as it did back then.

The investment enables you to increase your wealth while also outperforming inflation. You can also reap the benefits of compounding. Investing is a one-time effort that lets your money grow by itself, even when you sleep.

This helps you achieve your financial goals like purchasing your dream house, saving for retirement, and creating an emergency fund. Here is a list of investments you can make today for a secure future.

1. Direct Equity

Direct equity investments are those made directly in the stock market by investors to purchase a company’s shares. This is one of the best long-term investment options out there.

As an investor, you should be aware that the performance of a company has an impact on its share price, both negative and positive. You can make significant gains if you make the right choice.

Your ability to pick stocks and sell them at the right time is crucial to your success. You can also sell the shares later, depending on market conditions and your risk tolerance.

2. Index Funds

If you feel direct equity investments are too much pressure for you, you can always choose the easy option of low-cost, diversified index funds.

These funds have low expense ratios or fees, which makes them ideal for beginner investors. There are a variety of index funds to choose from, including those based on a specific industry, timeline, or market sector.

Index funds are a safer investment than picking individual stocks because they spread your money across hundreds of companies.

If you are unwilling to invest the time and effort in picking individual stocks, this method is ideal. Also, this strategy produces higher returns over time.

3. Real Estate

Real estates are one of the most lucrative investment opportunities out there. However, purchasing a home often necessitates upfront costs such as a down payment and closing fees and any renovations you choose to make.

If you choose to rent out the property, there will be ongoing costs such as maintenance, repairs, and dealing with tenants. If you don’t want to be a homeowner, you can still invest in real estate through real estate investment trusts (REITs).

REITs allow you to purchase shares in a real estate portfolio that includes properties across the country. They are traded publicly and have the potential for high dividends and long-term gains.

Check out HDRE Real Estate & Strata. It is a full-service agency, offering expertise in real estate and strata management.

4. Gold Bonds

There is no doubt that gold is a fundamentally sound asset class. However, it does not provide enormous long-term returns. In fact, gold has had an 8.87 percent return over the last ten years.

When markets are slow or uncertain, gold prices often rise sharply, but the inverse is also true: gold prices can remain flat for years. So, you have to choose when to enter and leave the market wisely.

We recommend investing in gold bonds rather than holding physical gold. These bonds offer better returns than physical gold and eliminate the cost of safely storing physical gold. The only significant disadvantage is their lack of liquidity.

5. Cryptocurrencies

If investing in a safe haven like gold does not match your risk appetite, consider putting your money on a high-risk asset like Bitcoin. Unfamiliar with this concept? Simply check Bitcoin News to learn more.

Many investors regard this as “digital gold,” but it could also be used as a digital form of currency. When it comes to the crypto market, you should never go in blind and unprepared. Do your homework, research, and read everything about the industry, coins, projects, and blockchain technology and only then buy Bitcoin with credit card or any other coin.

While the success of any crypto project cannot be guaranteed, early investors in the project can be richly rewarded in the long run. However, stick only to the blue-chip cryptocurrencies, such as Bitcoin and Ethereum. The rest of the market might be too volatile for your taste.

Over to you…

Remember that any investment comes with its own set of risks. Don’t do anything with your money that you’re not sure about. Take some time to research the asset/investment you plan to acquire/make. Also, figure out the kind of investor you are and invest according to your risk tolerance.

Also, if you ever feel like investing in yourself by building your own business, you can always reach out to a vc firm to acquire financial assistance. Just make sure that you know the risks that come with putting up a business from the ground up.