Opinions expressed by Forbes Contributors are their own. I where To Invest Money GenX’ers how to dominate finances and get more out of life. Nobody is telling you to pour every extra cent you have into stocks. By investing in yourself, you are improving the biggest asset you’ll ever have. It’s the dawning of a new year and you finally have some money to invest. Perhaps you just got a raise.
Or, maybe an end-of-year bonus is burning a hole in your pocket. Either way, you need to be smart about investing if you want those extra dollars to count. The problem is, you have no clue where to invest your cash. While you’re aware of the myriad investing options available, the sheer number of possibilities is overwhelming. You spend so much time analyzing your options that you wind up putting it off and never investing at all.
And eventually, the extra cash you set aside gets consumed by bills or unexpected expenses. 4 Investments You Should Absolutely Make in 2018 If you want to make sure your extra cash doesn’t disappear, you need to invest it right away. A certain amount of analysis is fine if it helps you find the right investment options for your goals, but you still need to act fast. With that in mind, I wanted to share what I believe are the four best ways to invest your excess funds in 2018.
Where To Invest Money Read on…
It is difficult to watch a small where To Invest Money grow slowly and, which are not actively managed but have a long history of solid returns. Your shares will also be raising in price so you will still profit. Do I purchase a stock then own it permanently, or do I have to pay monthly fees? These guys and gals are managing businesses worth millions or billions, your average purchase price will reflect the average share price over time. Avoid the temptation of high; choose several different stocks and invest a small amount of money into each of them.
Then there are people who think the stock market is so overvalued right now that they would be crazy to jump in. Dollar cost averaging requires us to trickle our money into investments over any length of time. Heck, it could be five years. This means that, over time, you will have a lower average share price using this method. Obviously, it’s easy to see why this would be beneficial.
Now that we’ve talked about the importance of investing in the stock market, let’s talk about exactly where to invest your money. What are the best tools and vehicles we can use? This is yet another situation where the options are overwhelming. Still, I typically suggest people get their feet wet with mutual funds or ETFs. If you have a financial advisor working on your behalf, they may be able to weed out the well-performing actively managed mutual funds from the ones that aren’t doing so great. Otherwise, you can invest in index funds, which are not actively managed but have a long history of solid returns.
If you have a brokerage account already, then you may want to stick with it. Otherwise, you’ll need to find a new place to help you invest your funds. One company I always suggest is Betterment. That means that you can invest your hard-earned money, then sit back and enjoy the returns and let them do the hard work.
If you want to have more control on your investments, online brokerage firms like Ally Financial, TD Ameritrade and E-Trade make it easy to stay in charge with low fees and easy-to-use platforms. 2: Peer-to-Peer Lending A second place to stash some of your excess cash this year is in peer-to-peer lending platforms like Lending Club and Prosper. As an investor in peer-to-peer lending, you’re investing in other people and their goals. It’s comforting knowing you aren’t lending people you don’t know large sums of money. While it may seem strange to hear a financial advisor suggest people invest in peer-to-peer lending, I’m not the only one who sees the value in these platforms. Kansas City Financial Advisor Clint Haynes told me he supports peer-to-peer lending as an alternative to the stock market for a few reasons.