70% of Americans regret not putting more money into investing in 2019.
With that in mind, it's likely that you're reading this because you may be in that category. Or maybe you are interested in getting started.
With so many different investment types available, it can be difficult to know where you should put your hard-earned money to see the best returns.
If you're in this situation, read on to learn about the different types and what might work best for you.
How to Invest
To get started in this investment process, speak to an expert who can provide vital advice to put you in the best position with your money. This will give you the most effective start as you will have an experienced professional to help with any questions.
But if that route doesn't sound like a fit for you, we can at least break down the different types of investments to help you get started.
The Primary Investment Types
These are 10 investment ideas that you could consider. Some are better for beginners than others:
1. Stocks
This is the most common investment in the U.S. You buy a small fraction (share) of a publicly-traded company in the hopes that its value increases.
It could go down, but that's the risk of investing.
2. Bonds
A bond sees you loan a sum of money to a company and as the bond matures you earn interest. This is less risky in terms of returning your initial investment with a little extra, but the company may collapse so it is not risk-free.
3. Mutual Funds
A mutual fund is money pooled from several investors. The fund is professionally managed, and it will be put into various investments, including stocks and real estate. You'll earn returns when the share distributes earned profits to the investors.
4. Exchange-Traded Funds
This is similar to mutual funds but ETFs are purchased and sold on the stock market.
The price fluctuates throughout the day but with the diverse investment, it is likely to increase in value.
5. Certificates of Deposit (CD)
The first very low-risk investment on this list. You give a bank a set amount of money for a designated period of time.
In the end, you get that initial money returned with the agreed interest. And, the money put in is insured so even if the banks close, your money is safe.
6. Retirement Plan
The best plans are the 401(k) or the Roth IRA.
These are incredibly tax-efficient, so take some time to research the types of retirements accounts that could be the best for you.
7. Options
These are more complex than other stocks. You basically buy the option to buy or sell an asset at a given price at a certain time.
They are risky though, with the chance that they may drop in value.
8. Annuities
Often purchased as a supplement to retirement. You can purchase an annuity for a one-off premium payment or for periodical insurance payments and then receive payments later on.
Low-risk but also not high growth.
9. Cryptocurrencies
These are some of the most recent investments and have gained a lot of attention in the news.
Prices tend to fluctuate massively so this is a very risky investment at present.
10. Commodities
This is typically investing in physical products such as precious metals and agricultural produce. These are more specialist investments and so a thorough understanding should be achieved before investing.
Get Ready to Invest!
Now that we have explored the variety and type of investments available, it's time to go and get involved.
There are plenty of investment types to choose from, so do your research and understand the investments you want to make before moving forward.
For more advice on money and investing, explore our blog!