Investing is on the rise as people are looking for more ways to make their money go further.
But how do you make smart investments?
If you are not a professional investor and you are looking to get started, this is the perfect investment guide for you.
Smart Investments in 2021
For a brand new investor, it is important to get a couple of things straight before you go throwing thousands of dollars at a stock you think is cool and exciting.
You need to make wise investments that will make money work for you in the long run. That is not to say that if you have extra cash and savings set aside, you can’t put some money into a brand you love, but it is best to start small and get a feel for things.
Below, you can see the investments we highly recommend you jump on now in order to see the best returns, so let’s get started!
1. Roth IRA
A Roth IRA is potentially the best place to put your money now to enjoy later.
The benefit here is that you pay tax on money placed into this account and it is then left to grow and grow. You can then withdraw your money at retirement and enjoy the gains without paying any extra taxes on your increase.
2. S&P 500 index funds
You may have heard of the S&P 500 or another index fund before. Essentially, it is an automatically managed fund that invests all of its money across the top 500 stocks.
While individual stocks are likely to rise and fall, the overall growth is as close to guaranteed as it possibly can be, which makes this an excellent way to invest your money.
3. Cryptocurrency
Crypto is a hot topic at present and while this presents the largest risk on this list, investing across a range of different currencies will help you to protect your finances in a similar way to the index funds mentioned above.
Use a simple and effective crypto exchange where you will be able to adjust your portfolio and track the growth across your investments.
4. Tesla
Again, this stock may present a risk, but we are listing it as a recommendation for long-term investment.
While the stock price may rise and fall with a single tweet from their CEO Elon Musk, it is still a company that is actively bringing the future closer. Within the next two years, they intend to add more affordable vehicles to their range and they constantly push the capabilities of their products as they work in close association with companies like SpaceX and Solar City.
5. Walmart
You might think it’s odd to see this brand appear on this list, but if you want to dip your toes into investing in a long-term stock that has a high chance of a return, Walmart is a solid choice.
They pay dividends which will help you to become familiar with receiving a small portion of a companies profits as a stockholder and they are not going anywhere anytime soon. Add to this the fact that they are currently expanding into new areas such as healthcare and subscription-based services like Walmart+ and you can see this is a forward-thinking company.
Take the First Steps
Now that you have a few smart investments that you can start working on, start researching other stocks and areas where you could invest.
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