Use These Tips to Invest and Build Your Fortune
- Author: Jenny Wolff
- Posted: 2024-08-07
Anyone can jump into the world of personal investing. You can start small and reap the profit or income later.
You may think, "Why invest any time, money or resources during these inflationary periods?".
Experts would tell you that there are investment trends at the moment indicating an outstanding potential for growth in 2023 and beyond.
There are several options for you to begin with. These include stocks, bonds, securities, and real estate. Here are some that you may want to explore:
Invest in Bank Stocks
Here's an interesting example. The Federal Reserve raised interest rates to their highest level in 13 years to stabilize prices and curb inflation.
That means it becomes more expensive to purchase a home, borrow to expand a business or take on other debt. This is designed to have demand fall and prices cool off.
Buying bank stocks could be a good idea in personal investing. Financial institutions tend to excel when interest rates rise sharply as it costs a lot more to take out a loan, etc.
Invest in AI via ETFs
ETFs are exchange-traded funds and are considered one of the hot investment trends of the decade.
An ETF lets you purchase a collection of assets in just one fund, and they trade on an exchange like a stock.
In addition, buying ETFs is pretty cheap. For instance, you're paying for only the cost of a single share, usually just $10 or $20 depending on the fund. Also, there is no commission, so it's free at major online brokers.
AI or Artificial Intelligence stocks are a good way to get into the groundbreaking technology that simulates human intelligence processes by machines, namely by computer systems.
Three AI-based ETFs to consider include ARK Autonomous Technology & Robotics ETF (ARKQ), Global X Robotics & Artificial Intelligence ETF (BOTZ) and ROBO Global Robotics and Automation ETF (ROBO).
Invest in CDs vs Treasury Bonds?
Here are more options to think about if you have extra funds you won't need access to right away.
Bank certificates of deposit known as CDs are going up, but how high they soar will depend on what the Federal Reserve does. At this point, the average one-year CD rates are at 1.59% as of May 2023.
Treasury bonds appear to be a better bet because the yields on one- and five-year Treasury bonds are over 4.60% and 3.30% as of May 2023.
By the way, if you need emergency cash and make withdrawals prior to a CD's maturity, you will have to pay a sizeable penalty. With Treasury bonds, for example, if you cash out before five years, there's a penalty of three months of interest.
Invest in ESGs
Another investing trend you may be drawn to is ESGs or corporations that have a conscience so to speak.
Investing in stocks that focus on environmental, social and governance (ESG) causes is a financial sector that could deliver long-term value to your portfolio.
According to economists, companies that prioritize ESG aspects are less likely to declare bankruptcy and are a solid investment with higher, three-year returns.
Popular ESGs include Home Depot, American Express, Hasbro, and Accenture.
Invest in Parking Lots
While most wouldn't consider parking lots as standard real estate, they truly are. Investing in parking lots is a sizzling trend, but there are factors to weigh.
You could start out very small by purchasing a single spot and leasing it to a tenant. Or you could find a small parking lot for sale in your community and buy it and then lease it to a third party to manage and operate it.
Real estate professionals say that the return you make will depend mostly on the location of your parking lot and its size. Maintenance is minimal with owning a parking lot, and there are fewer regulations compared to both residential and commercial properties.
It's no secret that individuals love their vehicles, and the demand for parking spaces is huge across the United States.
The beauty of personal investing is that it isn't one-size-fits-all. You have decent ways to make a profit, earn income and start building your fortune. Take your time, do research and consider the amazing potential out there available to all.
