2018 is just around the corner and it's about time that you start planning your investments for the coming year. So, what can be your best bets for the year ahead? Lets' discuss few avenues where you can consider putting your hard-earned money in 2018. These are not some faddish investment options, but instead must be treated as a highly recommendable financial plan for next year. Also, some of these choices require meticulous planning, so you’ll want to take the first steps today.
- Diversify Your Investments: It's a good idea to diversify your portfolio with several low-volatility investments in 2018.That way you can spread your risk around. It can include anything like precious metals, collectibles etc. If done right, they can fetch you incredible returns with less risk.
- Forex: The currency market is the largest financial market and that’s not an overstatement as there are around USD 5.3 trillion transactions that take place on a daily basis there. Forex can be the best place to invest for next year as it works round-the-clock, offers maximum liquidity and you can invest in currencies, CFDs, metals etc. and see your earnings multiply within the shortest time.
- Stocks of Large Companies: Large companies with robust growth that fare well when the economy is growing should prosper in 2018.Invest your wealth in stocks of large companies with faster-than-average earnings growth. They’ve flourished in this setting in the past and are likely to do so in the future as well.
- Retirement: Many of us tend to defer retirement savings for later when in our 20s. However, starting to invest for retirement early on is a smart financial move and next year is definitely a good time to start if you still haven't. That is because your interest keeps earning interest, year after year and the earlier you start all the more better for you. To step off the corporate rat race in your 50s or early 60s and retain your current standard of living, you need a huge retirement fund. You need to save diligently, invest wisely and manage taxes and expenses without depleting your returns.
- Real Estate: Investing in property and real estate during 2018 is certainly worth considering. However, before you buy any property you need to work out all the expenses and maintenance costs you are likely to incur once you own the property. You can also consider investing in a rental property and rent it out to a tenant.
- Invest in Career Growth: Your job is what actually pays your bills. So alongside investing your savings in stocks, properties etc. try to grow in your career. Acquire additional skills, earn more educational degrees and build a good professional network to further your career & take charge of your financial well-being. Don't stagnate.
- Insurance Policies: Insurance policies can be compared to an umbrella that you need to protect yourself with in a storm. The problem is that you can’t buy the umbrella after the storm hits but be forearmed. For instance, if you buy an insurance term policy, all of your premiums go toward securing a death benefit for your beneficiaries e.g. your spouse or kids. You can consider term life insurance as an investment because you pay relatively less in premiums in lieu of a comparatively large death benefit. Thus you cannot discount its importance and underlying benefits in case of premature death or any other unforeseen event.
- To sum up avoid investing in something you don’t understand. The most important task for investors in 2018 is to be selective and position their portfolios accordingly. Do yourself a favour and get 2018-ready financially. It will likely be the best decision you have made in a long time.