In the past, investing might have only been for rich people and Wall Street whizz kids. But there are now lots of ways to start making your money work for you, no matter how little of it you have. While investing your money in the stock market can seem intimidating and confusing, there are lots of alternative options that suit those new making investments. Keep reading to learn some of the best investments for beginners.
1. Real Estate
With appreciation pretty much guaranteed, real estate is always a smart investment. The beauty of investing your money in real estate is that you can make passive income while you still own it by renting it out. And, if you already own property, you have the advantage of knowing a little about how the market works.
Buying property isn’t cheap so you’ll likely need to save money before you invest. Or, one way to start sooner is to invest in cheaper real estates options, such as a parking spot, a lot, or raw land.
If making investments is something you know you should be doing but don’t have much interest in, why not consider a robo-advisor? These services manage your investments using algorithms, allowing you to reap the rewards with an almost hands-off approach. Low overheads mean low fees compared to human investment managers, and many options allow you to start with no minimum.
Even people who love a tipple might not know that you can invest in whisky. And as it turns out, it’s a great way to get started in the investment game.
Like real estate, whisky casks are tangible assets that appreciate over time. While your returns will depend on the brand and how long you hold the whisky, a typical return per year ranges from 12 to 15 percent. What’s more, whisky has the clear advantage of being a far more affordable investment than real estate.
Participating in a 401(k) or similar is one of the simplest ways to get started in investing. Most employers offer to match some of what you agree to save out of your paycheck. This means that you’re turning down free money if you choose not to participate.
Retirement plans like these might not be sexy but they’re automatic once you’ve made your initial selections. This makes them great savings tools and a foolproof method for beginners to invest in their future.
As many as one in six consumers invested in gold in 2020. This is likely because it doesn’t move with the market and often increases in value during times of geopolitical instability.
While it doesn’t generate income and needs storing, gold outperforms stocks and bonds across short-term comparisons. This, combined with its age-old appeal as a tangible, well-established asset, makes gold an attractive option for those new to investing their money, especially if they’re looking for a quick turnaround.
Best Investments for Beginners
As this list of some of the best investments for beginners shows, you don’t have to have a lot of money or financial knowledge to get started.
From stocking up on affordable tangible assets such as whisky to letting robo-advisors do the work for you, there are lots of different ways to make the most of whatever money you have.
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