Do you have a bit of extra cash on your hands? That’s a good problem to have. Perhaps your monthly take-home earnings have gone up a bit. Again, another good problem to have. If you do have a bit more money right now—you should be investing it. Current account rates are almost as low as they’ve ever been. That means you need to take a bit more care in choosing the right place to invest your money.
If you want to know a bit more about where to invest your money for a better financial future, then you’re in the right place. In this article, we’re going to look at a few different options with much better returns than simply leaving your money in the bank. Remember, investments should always be taken with care. Some of these have higher risk than others.
Generally, those investments with higher returns tend to have higher risk. That means your money is not completely guaranteed to be safe. However, if you make the right choices, you should be fine. You could consider investment insurance, or spreading your investments over a number of different types to make sure you’re properly protected.
That being said, one or more of these investment methods could be for you. Some of them might be a bit more obvious than others, but if you want to know where to put your money in 2019—let’s have a look:
- Private wealth management
Those with high net-worth often use their own wealth managers to manage the range of different investment funds and opportunities to put their money in. But did you know that you don’t have to be super-rich to make the most of one of these private wealth managers these days?
There are tons of options available for all sorts of investors. The best thing about a quality private wealth manager or management team is that they look after all the research and knowledge for you. Diversifying is important, but when you have to make all the decisions about the different places to put your money yourself, it can be difficult. Why not leave those sorts of decisions up to a professional who’s got loads of experience? Someone who knows what they’re doing and has been involved in the investment industry for years. If you want to get private wealth management, you could have made the best choice.
- Tracker funds
A tracker fund is a bit different to having your own private wealth manager. However, it’s another great way to diversify your savings without having to research each individual stock or investment opportunity yourself. Tracker funds are made up with a range of different stocks, and you can normally view each fund’s past performance for a reasonable indication of how good they are. Remember, past performance isn’t an indication of how well they’ll do in future, but it can be used as a guide if you’re careful.
There’s a reason why property has been a popular investment option for a number of years. it’s a great way to both grow your principal investment as well as earn a good yield in the process. Property has been a steady investment in most locations and if you invested a couple of decades ago, you should be in a good place right now. But that doesn’t mean you’ve missed your opportunity if you’re just coming to property.
With property investments, you should be able to find a yield or return that’s better than most savings accounts or bank rates. On top of that, the asset itself (the property) should continue to rise at a good rate each year. This isn’t guaranteed, but it tends to be that way in most cases.
Property is quite a stable investment because you will actually own some bricks and mortar rather than a virtual slice of something you’ve never seen. That’s why people feel quite confident putting their money in property.
If you can’t afford an entire property, you could invest in property investment clubs. Another option is buy-to-lets, where you pay a deposit and then rent out the property. The amount you receive in rent should cover the mortgage payments and give you a small profit, and eventually you’ll own the entire home.
At the other end of the risk spectrum is crypto investment. You’ve probably seen the massive media attention that cryptocurrencies like BitCoin have had in the last couple of years. But BitCoin isn’t the only crypto. While you might have missed the chance to make your millions with BitCOin, there are still tons of other cryptocurrencies that are still yet to have their big boom. Investing in cryptos is volatile and therefore extremely risky, so you shouldn’t put any more in than you’re completely prepared to lose. That being said, there could still be a big upside there and it could be the right option for people who can handle a bit of risk.
Another reasonably new innovation in the investment industry is that of peer-to-peer lending. These lending clubs or funding circles are a great way for small businesses and individuals to source funding from independent investors like yourself. The good news is the rates you can get from these investments are much better than those from the bank or similar options. There are also measures in place to protect your funds.
Stocks aren’t particularly new or innovative, but they’re still popular for a reason. If you don’t want a tracker fund or wealth manager to decide which stocks your money go in and would rather pick them yourself, then that’s still an option. Make sure you’ve done all the necessary research and know whether you’re looking for growth or returns (or a mix of both).
Isas are a specific type of saving account where you can invest a certain amount each year with tax benefits, up to a certain limit. They could be a good part of your investment portfolio.
- Savings account
If you would rather keep things simply, you could stick to savings accounts. These don’t give the best returns, but they are convenient and easy to find. They’re also extremely low-risk. Another good thing about savings accounts is that you’ll have quick access to your money, so they could be the right option for you.