Tweet
Here at Wall Street Forum, we're all about diversification of your capital not only for growth but also for safety. As much as we like to believe financial institutions are bulletproof they are not impervious to bad times.
When deciding where and how much of your money to park in different investment vehicles you will want to account for your age and the yield of each investment vehicle that you're investing in.
How do I keep track of all of these accounts?
Stocks
It should come as no surprise that we advocate parking at least some of your money in stocks. The stock market is the last great frontier that still allows the average Joe or Joanne to grow a relatively small amount of capital into a healthy nest egg.
With careful research into the stock market, individual stocks, and a sound understanding of fundamental and technical analysis you should be able to grow your account size over time.
Obviously investing for the long term should be started as soon as possible. The younger you are the better. Even if you haven't started yet and aren't "young" you should still start right now!!!
If you are new to the world of stock please check out our Stock Market Forum for loads of free info on the stock market. This article is also a great place to start.
Don't forget we also offer a service to investors for $9.99/month who want to receive long-term stock recommendations to add to their portfolio. Click Here to sign up for the 10-Buck Broker!
High-interest savings accounts
High-interest savings accounts are a great place to park your money because they don't require hardly any effort on your part. After quickly setting up your account you can start funding it. This whole process usually takes under 15 minutes. Once your account is open you can set up automatic deposits into your account for any amount you choose.
Most commercial banks have absolutely terrible interest rates on their savings accounts. More than likely the bank you use for your everyday checking is one of these banks. The interest they offer on savings accounts usually ranges from 0.02-0.08% which is lower than the inflation percentage. If you were to invest your money in these savings accounts you would actually be losing money. A simple google search will give you much better options. Some high-interest savings accounts offer rates as good as 2.7%
Regardless of your age, high-interest savings accounts are a great place to park your money.
Real Estate
You almost can't go wrong with real estate investing as a diversification tool. As far as residential real estate goes, people will always need somewhere to live. Commercial real estate can be a bit riskier as it moves with the economy more drastically. If the economy is on the downturn commercial real estate can definitely be the first to waiver.
One of the biggest draws of real estate is that it is so versatile. You can be a landlord, flip houses, invest in REIT's, and so on. The options are numerous
REIT's
Real Estate Investment Trusts are companies that own and/or operate income-producing real estate. REITs typically own commercial real estate like office buildings, apartment buildings, warehouses, shopping centers, hospitals, and hotels. You can invest in REITs in a couple of different ways. There are REIT stocks and of course the actual REIT companies themselves. Fundrise is a great option for a commercial/residential REIT.
Real estate investing can have some financial restrictions so it's usually not the best vehicle for young investors.,
Metals
Gold and silver are some of the best investments and cash protectors you can buy. They provide an excellent hedge against stock market turmoil too. There have been plenty of times when the US stock market was in the tank and I traded gold stocks because they were doing the exact opposite of stocks...they were going UP! There are several sources online to buy physical gold. You have to do your due diligence when buying something like gold online. One of our favorite and most reputable sources is Regal Assets.
Metals are similar to real estate in that a young person might not have the financial means to invest heavily in them. Perhaps after some time spent investing in stocks some of the proceeds can be withdrawn to purchase physical metals.
When deciding where and how much of your money to park in different investment vehicles you will want to account for your age and the yield of each investment vehicle that you're investing in.
How do I keep track of all of these accounts?
Stocks
It should come as no surprise that we advocate parking at least some of your money in stocks. The stock market is the last great frontier that still allows the average Joe or Joanne to grow a relatively small amount of capital into a healthy nest egg.
With careful research into the stock market, individual stocks, and a sound understanding of fundamental and technical analysis you should be able to grow your account size over time.
Obviously investing for the long term should be started as soon as possible. The younger you are the better. Even if you haven't started yet and aren't "young" you should still start right now!!!
If you are new to the world of stock please check out our Stock Market Forum for loads of free info on the stock market. This article is also a great place to start.
Don't forget we also offer a service to investors for $9.99/month who want to receive long-term stock recommendations to add to their portfolio. Click Here to sign up for the 10-Buck Broker!
High-interest savings accounts
High-interest savings accounts are a great place to park your money because they don't require hardly any effort on your part. After quickly setting up your account you can start funding it. This whole process usually takes under 15 minutes. Once your account is open you can set up automatic deposits into your account for any amount you choose.
Most commercial banks have absolutely terrible interest rates on their savings accounts. More than likely the bank you use for your everyday checking is one of these banks. The interest they offer on savings accounts usually ranges from 0.02-0.08% which is lower than the inflation percentage. If you were to invest your money in these savings accounts you would actually be losing money. A simple google search will give you much better options. Some high-interest savings accounts offer rates as good as 2.7%
Regardless of your age, high-interest savings accounts are a great place to park your money.
Real Estate
You almost can't go wrong with real estate investing as a diversification tool. As far as residential real estate goes, people will always need somewhere to live. Commercial real estate can be a bit riskier as it moves with the economy more drastically. If the economy is on the downturn commercial real estate can definitely be the first to waiver.
One of the biggest draws of real estate is that it is so versatile. You can be a landlord, flip houses, invest in REIT's, and so on. The options are numerous
REIT's
Real Estate Investment Trusts are companies that own and/or operate income-producing real estate. REITs typically own commercial real estate like office buildings, apartment buildings, warehouses, shopping centers, hospitals, and hotels. You can invest in REITs in a couple of different ways. There are REIT stocks and of course the actual REIT companies themselves. Fundrise is a great option for a commercial/residential REIT.
Real estate investing can have some financial restrictions so it's usually not the best vehicle for young investors.,
Metals
Gold and silver are some of the best investments and cash protectors you can buy. They provide an excellent hedge against stock market turmoil too. There have been plenty of times when the US stock market was in the tank and I traded gold stocks because they were doing the exact opposite of stocks...they were going UP! There are several sources online to buy physical gold. You have to do your due diligence when buying something like gold online. One of our favorite and most reputable sources is Regal Assets.
Metals are similar to real estate in that a young person might not have the financial means to invest heavily in them. Perhaps after some time spent investing in stocks some of the proceeds can be withdrawn to purchase physical metals.
Comment