The economy has been steadily recovering over the past eight years since the housing bubble burst in 2008, and people are starting to regain confidence in real estate, the stock market, and other investment vehicles and assets. That said, though, with so much going on in the US and around the world right now, it’s hard for most people to know what’s going to happen next or where they should invest their capital for short-term or long-term investments.
Fortunately, there are a few investment vehicles that are incredibly good bets for 2017 and could bring up significant positive ROIs (returns on investment), whether you want to see returns after a few months, a year, or several years.
High-Yield Saving Options
You probably already know that a traditional savings account’s interest rate simply cannot keep up with inflation. This means that stashing your savings here for several years will actually decrease its worth. However, there are some high-yield options. Online banks, for example, often have higher interest rates than traditional savings accounts. And, if you do not need liquid funds for several years, you may want to consider a CD (certificate of deposit), which comes with slightly more risk but will usually have a much higher return, as well.
Gold and silver have long been great investments to hedge against inflation. Over a long enough timeline, they will always appreciate, and they will almost always outpace inflation. Precious metals are a good, stable investment and, thus, a good way to diversify your investment portfolio. At the same time, you certainly don’t want to make them your only investment, especially if you want to significantly increase your net worth.
Real Estate Investment Trusts (REITs)
REITs are corporations or trusts whose sole focus is on investing in large and lucrative real estate developments. When you invest, you will not directly buy any real estate. Instead, you will purchase shares in the trust, and then you will get quarterly returns on your investment based on the profitability of the property and the percentage of its equity that you own through your shares.
REITs offer investors a means to invest in real estate without ever taking ownership of a property. Unlike a lot of other real estate investing opportunities, they offer truly passive income, which makes them very interesting to investors looking to grow their net worth without adding a lot of working hours to their days.
Recently, we’ve seen a significant rise in the popularity of peer-to-peer lending sites. This model of investing allows you to help someone else by lending them a specified amount of money. They will then pay that money back over an agreed-upon period of time with a set interest rate.
This kind of setup benefits investors because interest rates are higher than they would get with most savings accounts and some other investments. At the same time, it benefits borrowers, as they will be able to qualify for loans that they could not necessarily get through a bank. Interest rates are often lower than borrowers could get elsewhere, as well, making peer-to-peer lending a win-win situation in most cases.
These are four of the best places and vehicles to invest your capital in 2017, for both long- and short-term investments. Whether you choose one or all of these avenues, though, be sure to do your homework before investing. Every investment comes with some risk, but that risk should be calculated, and you should be properly prepared for it.