Since the pandemic broke in early 2020, the global economy has been turned upside down.
While this has been devastating to many individuals and businesses, it also presents new possibilities for investing for the short and long-term.
If you’re new to investing and want an overview of options for reliable and realistic returns, read on. For more mature investors, you may like to consider some of these options to diversify a portfolio.
Blockfi account
Stablecoin presents an interesting option. Stablecoin is a cryptocurrency coin that trades 1:1 with the dollar.
When you deposit money in your Stablecoin wallet, it is possible to get 8.6% interest.
Although Stablecoin is a cryptocoin, you can access it and change it back to US dollars. However, you should be aware that there is significant level of risk involved, and crypto investing can be very volatile. You should be cautious about investing funds that you can’t afford to lose.
Online savings account
If cryptocoin just isn’t your thing, you might want to build your money in a more conventional way. One of the easiest ways to do this is by using a high interest online savings account.
A high interest online savings account is the best way to to invest your money in a risk-free environment. Of course, your rate of return will vary significantly based on the account you choose and the level of your deposited funds.
When operating online, you tend to get a better rate and no fees. It’s important to do your research before deciding on a savings account, to ensure you get the best ROI possible.
Money market account
Unlike standard savings accounts that are based on the length of time you invest your money, money market accounts base your rate of return on how much you have stored in the account.
This makes for quite an effective short-term investment option that is relatively risk-free. Money market accounts will also issue you with ATM cards, checks, and deposit slips, giving you full autonomy over your savings and investments.
Although money market accounts are not primarily designed for savings and investment, it is what they are primarily used for. They provide excellent access to your money along with a high rate of return for little risk.
Property investments
Property is considered by some as a safe way to invest your money. Even if the market crashes, like it has done in the recent past, your property investment could still potentially grow again as the market recovers.
When house prices are low, it may be a reasonable time to invest your money in some property. Invest in a house for sale and watch your investment grow, along with the recovering market.
Although property investment is more of a long term strategy, it does provide excellent returns and long-term security. The simple equation for this type of investment is buy low and sell high.
Certificates of deposit (CDs)
Certificate of investment deposits may be useful for those who have a lot of money to invest and are relatively risk-averse. With this type of investment, you are guaranteed a return.
The idea works on the basis of holding time. The longer you allow your money to sit, the better your return will be. Typical holding times range from between 3 months and 5 years.
The excellent thing about a certificate of investment is that you are guaranteed a return on your money regardless of what the interest rates do during your period of investment. There is also no penalty for withdrawing early.
A Roth IRA
A Roth IRA is an after-tax investment opportunity that allows individuals to accrue income their after-tax incomes. This income is invested in mutual funds, ETFs, and bonds.
With a Roth IRA investment, you can withdraw your money at any time. It is your earnings, after all. Of course, the longer you leave the funds in your account, the more they will grow.
A Roth IRA investment fund is excellent for both short and long-term investment opportunities. It is a fairly liquid type of investment that allows you quick access to your returns.
Online checking accounts
Online checking accounts are similar to online savings accounts with one major difference, they better serve your short-term investment objectives.
With an online checking account, you get many benefits. There is much more liquidity with a checking account, giving you instant access to your funds and unlimited withdrawals.
Unlike online savings accounts, online checking accounts also offer you cash bonuses for your investments, especially when interest rates are low.
Short-term bond funds and ETFs
This type of investment is ideal for those looking for a short-term return on funds that are relatively risk-free. Bonds are not as stable as money markets but offer potentially higher yields.
If you want to invest in bonds, you can, but usually these investments are carried out through a professional financial advisor. The bonds are tied to the market’s changing conditions and will pay out accordingly.
5-Year Treasury Inflation-Protected Securities
This type of investment, also known as TIPS, is a government bond that is tied to the changes in inflation. There is a fixed interest rate on TIPS. However, the underlying value of security rises according to inflation. This means you might get 0.5% in interest paid twice a year, but over five years, the value of the bond might increase by 2.5%.
Municipal bonds and corporate bonds
If you want a bond investment that is a little riskier than TIPs but offers a higher yield as a result, you might consider municipal bonds. This type of bond is particularly sensitive to interest rates. If the interest rates rise in the marketplace, you will see a decrease in the value of your bonds to compensate.