Each year is a good year to begin your investment portfolio. And since 2019 just begun, it is always wise to get start working on one right away. If you’ve been holding back all this while and want to take steps to ensure that all your hard-earned money eventually transforms into a bedrock of safety and security, here are a few avenues that can be explored to build yourself a solid foundation:
- Stock Market:
By the end of 2018, the S&P 500 will have lost all its 2018 gains. Many also believe that this is the beginning of a spiral that might last years.
You can however focus on dollar cost averaging—where the same amount of energy is invested every month. This also allows investors to take advantage of opportunities when the price of investments is about to go down.
If you still feel some discomfort buying individual stocks, its best to invest in globally diversified, low-cost index funds.
- Real Estate:
Real Estate, at the moment is a bubble. Prices continue to go up and down with no end in sight. If buyers are not invested in physical real estate, they can always buy REITs (Real Estate Investment Trusts), which allow you to take advantage of the upsides of the real estate market without getting your hands dirty.
Crowdfunding also allows you to invest in real estate notes and shares.
- Peer-to-peer lending:
Peer-to-peer lending allows another place to invest your excess funds this year. P2P platforms like lending club and prosper allow you to loan money to individuals like a bank, and you get to receive the interest they pay in. Returns can vary on how risky the loans are—which can go up to 6% or more.
- Your career:
While the economy is set to remain unstable over the next few years, you always have control of one thing: yourself. 2019 is just about the right time to invest in your career and future—in a way that will help you warn more income over your lifetime.
- Your health:
We all have one life, and it’s for the best that you start taking care of your own. Invest in your physical and mental well-being, and better food options. Invest in whatever’s required to make sure that you are in your best state possible to find new ways to enjoy life.
- Paying off debt:
Your wealth is determined by your assets and liabilities, and there might be debts that are dragging you down. If you’ve accumulated high credit and debit card debt, it’s crucial to make sure they disappear, so that you don’t end up in the vicious debt cycle from which there may be no escape.
Paying off debt also reduces your utilisation and improves your credit score. A better credit score can help you secure loans with the best rates and terms. In the long run, these can save you money the next time you take out a loan for a home or a car.
–Lucas Cooper (GBO Correspondent)