Best Safe Investments in 2019
This year has been a rollercoaster ride for the financial markets. With economic uncertainty as the buzz phrase, investors scamper to find the best safe investments this year.
These investments are assets that have low amount of risks. Most of the time, they are those that don’t really move in line with prevailing sentiment.
And we’re not only talking about the bullion, silver, or other safe-haven assets. We’re talking about real safe investments that are sure to be the best ways to invest money this year.
Let’s take a look at these low-risk investments.
Money Market Funds
Topping our list are money market funds, which are pools of certificates of deposits (CDs) and other low-risk investments.
Money market funds are among the best safe investments because of their liquidity, too. That’s because most of these funds give you an option to write checks.
The downside, however, is that inflation still can dampen your investment. If inflation rises faster than the interest you earn from the account, you’re basically losing your buying power.
With these funds, you achieve diversification minus the relative risks. You can avail this low-risk investment from many brokerages and mutual funds.
Treasuries come from the US government, and it’s quite unimaginable that it would ever enter an event of default.
Being one of the safest and best investments, you can use them to prevent the loss of your principal.
T-bills usually mature in one year or less. They don’t technically bear any interest, but you can buy them at a discount. When they mature, the government pays you the full amount.
That’s the buy-low-sell-high style in a nutshell.
As for the downside, you just have to check the interest rate sentiment. When rates are rising, Treasuries lose appeal because you can earn more with new bonds. At the same time, inflation can be a foe.
Although stocks are generally riskier than other assets, they can also be among the best safe investments. Just make sure they’re dividend-paying bonds.
Dividends are payments from the company’s profit. You typically receive them on a quarterly basis.
You receive payments from dividends and you also gain profits as the stock’s value appreciates. That’s covering your short- and long-term earnings.
One possible downside, though, is when a company issues dividends with highest current yield. That by itself isn’t a problem. But if the company’s dividend doesn’t show any increases, you should think twice. It may mean the company is in trouble.
Now, with personal finance, you don’t only invest in assets such as these. You also invest in other stuff like your skills, abilities, and many more. Let’s take a look at some things you should prioritize before 2019 ends.
Invest in Your Career
As the economy is facing risks of recession, there’s a smart way to secure your own outlook. You have total control of you and your career.
Have a top-down or bottom-up evaluation of your career and see whether you can pull off small improvements.
If you’re an employee, see how you can make yourself more valuable to your boss and colleagues. Unlike your past relationship, they wouldn’t let you go that easy because they need you.
One good example of investing in your career is through materials that are specific to your career.
This way, your best investment will be yourself. And that’s something you could be proud off come next year.
Your Second Career
And who said you could only have one career? Where’s the real fun in that? Having another income-producing hustle is a great idea to protect yourself against market downturn.
A second career can help you achieve more of your financial goals since you’ll be earning more. And you don’t even have to make full-time. There are lots of side hustles nowadays that only require your spare time.
If you have a way with words and you can write decently, why not try freelance writing? Or you can join the “knowledge industry” and be a speaker for something you’re good at.
In you haven’t noticed, 2019 is a year when skills, expertise, and hobbies are all monetized. Just ask your next-door vlogger/YouTuber/influencer.
One caveat, though: don’t spread yourself too thin. One or two side hustles will be fine, as long as you do them well.
Lastly, pay off your debts. It’s difficult to invest anything if you know you have a lot of liabilities. If and when the recession the markets are fearing come true, your debts will drag you down.
Create a plan to settle all your balances, whether they’re bank loans or credit card balances. If you have loans from people, pay them off.
Although it may sound difficult, having zero liabilities is still one of the best safe investments. Also, if you have zero debt, it will be easier to apply for loans for when you really need them.
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