When it comes to building wealth, investing your savings wisely is essential. This is because investments tend to yield more growth than savings accounts, which helps protect against inflation.
Not to mention, having a nest egg built up is an important safety net. With good savings stashed away, you will not have to take out a loan and hurt your credit score.
If you have not started investing yet, now is the time to start. Here are our top good investment ideas for 2018 to help you get started.
A Retirement Account is Essential
If you are just getting started with investing, it is important to start with a retirement account, like a 401(k) 403(b) or a Roth IRA. Since you cannot take money out of these accounts until you are over 59, the money you have in there will have plenty of time to grow.
Sometimes, however, you may be able to take out a loan from your retirement account early. In most cases, you will have to pay a penalty, but under specific circumstances, you can do so penalty-free.
Consider a Money Market Account
Another good investment option for new investors is a money market account. Money market accounts are diversified options that include a variety of stocks, bonds, and securities, which makes them less volatile than an individual stock. That said, they are also a bit riskier than a savings account, which creates more opportunity for your money to grow.
While they can be more volatile than other investment options, investing in individuals stocks is one of the most fun parts of investing. Once you get the hang of it, you can try buying stocks when they are low and selling them once they are high again. Depending on how much you are willing to invest, this can be a great way to build up your savings.
If you are looking for which individual stocks you should start with, there are a few good standbys. Technology stocks like Facebook can be a good, secure option. Insurance is another strong investment opportunity, so you may want to consider investing in a particular insurance company.
Use an Advising Service
For folks who are unfamiliar with advising, getting started can be intimidating. For this reason, it is important to work with an advising service that can help you navigate your options and make the best investment.
For instance, a service like investormint.com can help you decide where to invest your money. It also provides dashboards that allow you to monitor your investment and see how your money growing.
With most advising services, you can also work with a live financial planner. A financial planner will help you identify your goals, understand your assets, and determine the best way to diversify your wealth and plan for the future.
Get More Good Investment Ideas
With these good investment ideas, you will soon be on your way to growing your wealth.
What ideas did we miss? Let us know your investing tips in the comments!