With the US in its second quarter of negative growth due to unflagging inflation, it’s more important than ever to keep your investments diversified. As the saying goes, don’t put all your eggs in one basket. The world is changing; hopefully, so is how you invest your hard-earned income. Here are five ways to keep your portfolio safe, diverse, and primed for growth.
1. Out of Country Real Estate
It’s not a great time to invest in a home in the US, whether it’s your first or your fifth. The market isn’t exactly hospitable with the federal reserve hiking interest rates yet again. However, purchasing real estate outside the country can make a fantastic addition to your financial portfolio.
Consider luxury real estate Casco Viejo, in Panama City, Panama, for instance. Panama offers a wide array of modern real estate investment opportunities, and it’s a virtual tax haven with an easy road to citizenship.
So many financial gurus recommend investing in bonds as they are their “most attractive point in years.” Bonds are a way of purchasing corporate debt, which a company is then obliged to pay you interest and return the sum at a fixed date.
With the current surge in bond yields, experts suggest we’re at the ideal buying point for longer-duration bonds. If you’re looking for a long-term investment for capital appreciation and portfolio protection, bonds are it.
3. Target Date Funds
Investing for retirement can feel like a long con depending on your age. However, it doesn’t have to feel tricky or unattainable. Target Date Funds are a great tool for investing for a specific end date of your choosing (in this example, retirement).
The farther you are from your end date, the riskier (and generally more rewarding) your investments. However, the closer you are to the end of your investment, the fund targets safer choices like bonds or cash.
4. Crypto Currency
While cryptocurrency might have dropped steeply in recent months, it remains an excellent market for expanding your assets. With prices reaching new lows, it’s a better time than ever to invest in the crypto economy.
Purchasing during the dip in cryptocurrency is a risk, but with careful monitoring, the long-term opportunities far out weight the current risk. Consider adding Bitcoin or Ethereum to your portfolio and enjoy a hearty discount.
While this may seem obvious, it’s remarkable how many people have not tapped into the power of an index fund. They’re a fantastic way to diversify at a low price point.
ETFs or mutual funds that track broad indexes (think the S&P 500) are an easy way to buy into a portfolio for next to nothing. Save yourself the migraine of monitoring each investment, and allow an index fund to do it for you.
There are many more imaginative approaches to diversifying your investments than buying up individual stocks. From international real estate to cryptocurrency, thinking beyond cash and country can help you prepare for a safe and well-invested future.