Investing your money can help to secure your future. Some investments have the potential to grow over time. Others, however, can be downright harmful to your financial well being. That’s why it’s crucial to do adequate research before getting involved with any type of investments. The following are six investment vehicles that are poised to grow in the future.
Bonds
There are several types of bonds, such as government, municipal and high-yield. If you are looking for a stable and secure investment, you are better off with something like treasury bonds, which are backed by the government. Bonds pay a certain guaranteed rate of interest. One issue to be aware of with bonds is that, depending on whether interest rates rise or fall, they become more or less profitable. The lower interest rates are, the better an investment in bonds will be.
High Growth Stocks
Investing in high growth stocks can be one of the best investment decisions you can make. While no one can predict exactly what the stock market will do, you can study trends and see which companies appear to have a bright future. Finding solid, stable companies in high growth sectors, such as technology, are usually a safe investment. When investing in the stock market, it’s best to have a long term outlook. That way you are protected from short term price fluctuations.
Real Estate
Real estate has suffered quite a bit in recent years, which is why some experts are saying that it’s the ideal time to invest. When it comes to real estate, you have to determine what your goals and strategy will be. Rental properties are one way to secure an income from your property. Even a well maintained home that you live in can be considered an investment. It’s best to look for bargains in areas that are poised for economic growth or recovery.
ETFs in Growing Economies
If you want to diversify your investment portfolio, one area worth considering is investing in economies that show promise, such as the countries of Southeast Asia. One option is to invest in ETFs or Exchange Traded Funds in countries such as Thailand, Singapore and Malaysia. This type of investment is sensible if you are convinced, as many experts are, that this part of the world has a prosperous future.
Deferred Annuities
A deferred annuity is a long term investment that allows you to defer any taxes on profits until you make a withdrawal. There are many types of deferred annuities, so it’s important to know which is most suitable for you. With a fixed deferred annuity, for example, you receive a guaranteed amount of interest while taxes are deferred until you withdraw. This is a solid investment if you are fairly certain you won’t be needing to withdraw money from the annuity in the near future. To get a better look at the results you will be obtaining you can check it with a deferred annuity calculator and compare it with the other investment vehicles.
Mutual Funds
Mutual funds are one of the most popular investment choices, and for good reason. One benefit of mutual funds is that they usually invest in a wide diversity of securities. This ensures that your investment isn’t dependent on one sector of the economy performing well. Mutual funds are a good choice for investors who don’t want to do a lot of their own research on individual stocks, as the professionals at the fund will make these decisions on your behalf.
The above are some investment ideas that can help you to secure your financial future. Most financial advisors suggest investing your money in a diverse manner, to protect you from unpredictable events in any particular market. Understanding the annuity basics, mutual fund diversity and interest rates will help you make better personal finance decisions in the future.