To enjoy a comfortable and financially stable future, investing is an absolute must. Ever since the world faced an economic catastrophe in the wake of the pandemic, seemingly stable economies will soon take a hit.
With markets still recovering, it can be quite overwhelming to know which investments are ideal to try this year. Real estate investor and Venture Capitalist Ryan Dean Hoggan explains some of the best markets that investors should consider in 2021.
Investment 101 – What are the Basic Considerations for Investing?
The first two things that are important to understand when thinking about financial investments is risk and time horizon. If you are aiming for high returns, you will typically have to take more of a risk.
Depending on your needs and preferences, you can choose from an array of investments. These include safe but low-yielding certificates of deposit (CDs) or highly volatile but financially rewarding investments like stocks and EFTS. For this reason, it is important to first ask yourself if you can actually withstand a higher risk level to get a higher return.
Knowing your risk tolerance will allow you to remain calm and effectively plan for the future lest your investments fail. Remember to never sell your investment when it’s going down, assuming it still has the potential to increase.
Holding your investments for longer periods of time can actually lower your risk. This is because you give the markets enough time to go through ups and downs.
What are the Best Investment Markets for this year?
Real Estate
Ryan Dean Hoggan sees real estate as the ideal long-term investment. Though it requires a good sum of money to get started, it is still a pretty lucrative investment. You can borrow money from the bank to finance most of your investments and pay it back eventually.
There are several tax laws that also benefit property owners in particular. With the right property, you can enjoy greater cash flow stability and maintain your asset value.
Stock Funds
If you are unsure about investing in individual stocks, then a stock fund is a better alternative. Purchasing a diversified fund like NASDAQ 100 index fund can help you receive numerous high-growth stocks.
This option is for aggressive investors who do not want to stay in the investment for too long.
Growth stocks
Growth stocks promise high yields as well as high growth. They are often associated with tech companies and are usually risky. This is because they require the investor to pay a lot at first, but the returns can be astronomical.
Growth stocks have also remained one of the best performers over time.
Can you invest in NFTs?
Yes, but to do so, you will first need to buy a cryptocurrency like Bitcoin to enter the marketplace. NFTs are fairly new in the market but can make a good investment option if you know the market well.
Some NFTs are being sold for millions of dollars, but the option has not stood the test of time to promise high returns. If you want, you could start off with small investments in NFTs and slowly build your portfolio.
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