Investments To Consider In 2019

Dated: 05/22/2019

Views: 28

Veronica Nunez

(951) 403-4445 RE0203119

veronicanunez@firstteam.com

www.veronicansellshomes.com

7 Best Investments To Make In 2019

With the new year finally upon us, you may be aching to make some significant changes in your life. Maybe you want to start exercising more often and taking better care of your health.

Or, perhaps you want to spend more quality time with your kids — time where you only focus on them and nothing else.

And maybe, just maybe, you’re starting to feel like 2019 is the year you should finally start investing your money for long-term growth.

Maybe you have built up a respectable sum of money in a high-interest savings account, but you know that saving cash isn’t enough.

Or, perhaps you want to spend more quality time with your kids — time where you only focus on them and nothing else.

And maybe, just maybe, you’re starting to feel like 2019 is the year you should finally start investing your money for long-term growth.

Maybe you have built up a respectable sum of money in a high-interest savings account, but you know that saving cash isn’t enough.

Investments to Consider in 2019

But, whereshould you invest your money? This question plagues both beginning investors and established pros. While no investment is guaranteed, I wanted to share my thoughts on thebest investment optionsfor 2019 and beyond.

#1: Stock Market

If you’ve been keeping up with stock market twists and turns lately, you have probably heard the rumors that a correction is on its way. The S&P 500 will have lost all its 2018 gains by the end of the year and then some, and many believe that’s just the beginning of a spiral that might last years.

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But, if you’re investing for the long haul and have a long time to ride the wave before you retire, you may not have to worry too much. Financial advisor and author ofThe 8 Biggest 401(k) Mistakes and How to Avoid ThemMitchell Bloom says that it’s important to develop an investment philosophy so you have guidelines to keep you on track when emotions get in the way of investing.

Emotions can hinder a good investment plan in different market environments, whether you’re experiencing a bull run where the markets are up, or a bear market where the markets are off 20% or more from their high.

That’s why many investors focus on dollar cost averaging — a term used to describe a strategy where you invest the same amount of money every month. Dollar cost averaging allows investors to take advantage of opportunities when the price of investments go down since you’re buying all along.

If you don’t feel comfortable buying individual stocks, consider investing in globally diversified, low-cost index funds. If you need some help and guidance along the way, you can also use the services of a robo-advisor like Betterment.

Bettermentwill help you outline your investing goals and figure out a long-term plan to achieve them instead of focusing only on returns. They can help you move into investments with lower fees than you’re paying now, and you can receive personalized advice for less than you’d pay a traditional financial advisor.

Finally, don’t forget that there’s an incredibly easy way to invest more money into the stock market that could also help you save money on taxes. Byadding more money to your 401(k), you can reduce your taxable income and grow your wealth in one fell swoop.

Also remember that you may be able to reduce your taxable income by investing in a traditional IRA, and that you can invest after-tax dollars in Roth IRA too provided you meet income requirements.

Fortunately, the government has upped the amounts you can contribute to these accounts for 2019: $19,000 in a 401(k) and $6,000 across traditional and Roth IRAs.

#2: Real Estate

Just like the stock market, many experts believe that real estate is in a bubble across many parts of the United States. Prices continue to go up and up with no end in sight. Unfortunately, this type of scenario never seems to end well.

Still, many real estate investors that buy rental property don’t seem to be worried. Even if the real estate market tanks, people need to live somewhere, right?

If you’re not someone who wants to invest in physical real estate, you can always buy Real Estate Investment Trusts, or REITs. REITs allow you to take advantage of the upsides of the real estate market without getting your hands dirty or dealing with the hassles of being a landlord.

Real estate crowdfunding sites like Fundrise.com, RealtyMogul, and Rich Uncles also allow you to invest into real estate notes or shares.Fundrise in particular has offered returns between 8.76% and 12.42%the last couple of years, so it continues to be popular with investors.

Buyer beware, however. Real estate investing platform RealtyShares closed its doors to investors in November 2018, which may not be a good sign. Also note that your investments won’t be liquid if the market goes south— as in, you can’t just cash in your Fundrise account and walk away.

If forced selling leads to a temporary plunge in real estate prices, everyone will wait to see where the bottom will be. In such circumstances, writes Miller, Fundrise will almost certainly suspend our redemption program and investors should not expect us to provide them with liquidity.

He also notes that, if you think you may need liquidity from your investments during the next financial crisis, then the company’s long-term illiquid real estate strategy is probably not a good fit for you.

On the flip side, if you have money to invest and are willing to ride things out, then one person’s financial crisis could be your golden opportunity. Fundrise keeps cash on hand so they can buy more high-quality real estate when prices are low, so you could be in an even better spot when the real estate market does rebound.

#3: Peer-to-Peer Lending

Another place to invest your excess funds this year is one that has been around for a while — peer-to-peer lending. Platforms likeLending Cluband Prosper allow you to loan money to individuals like a bank does, and you get to receive the interest they pay in. While returns can vary depending on how risky the loans you choose to fund are, they can be upward of 6% or more.

If you’re worried about loaning money to one person and having them ghost you, don’t be. Lending Club allows you to spread your investment over hundreds or even thousands of loans in increments as small as $25. That way, you’re not betting the farm on one person you don’t even know.

Both Lending Club and Prosper also make it easy to get started. The minimum investment amount for Prosper is now only $25, butyou’ll need at least $1,000 to get started investingwith Lending Club. Keep in mind, however, that each platform only offers investments on their primary markets in certain states. For example, investors in Alaska, New Mexico, North Carolina, Ohio, and Pennsylvania cannot invest on Lending Club’s primary investing platform. Investors in these states can only invest in a secondary trading market known as FolioFN.

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Veronica Nunez

Veronica Nunez is a First Team Realtor in the city of Corona. She has been a Corona resident since 1997. Veronica has worked in public services for 23 years, fifteen of them for the City of Corona. Sh....

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