5 Great Investment Ideas to Prepare For Your Future

Posted by edwardjohnson on October 30th, 2019

Even though you may not know what expenses you will be responsible for paying in the future, you do know that it is important to be prepared well in advance. This is one of the primary reasons why the smart woman knows how to save today for anything that is coming up later on down the road. In fact, as this money is being put away in a savings account, she can also foresee the need for making investments to ensure that money is still growing.

Having said that, here are five great investment ideas that you may want to consider as you create an investment strategy to take care of your future needs.

1. Invest in Stocks that Pay the Highest Dividends

A great investment opportunity involves purchasing stocks. To do well in this area, you need to devise an effective strategy that will make you money. For instance, to make sure that you are getting the best benefits, you need to make sure that you have a dividend investing strategy that looks for low volatility but high-quality stocks, like company names that have been around a long time and still doing well. For instance, stocks in Coke can be an excellent way to always keeps some finances in the wing. These companies pay out dividends in at least one of two ways, and that is to give stockholders more stocks or pay out a cash distribution by check.

2. Start with Your Company’s 401k Match

For some newbies, the first introduction to the investment world normally begins with the company that they work for and their 401k plan. In fact, financial advisors highly recommend participating in this type of investment, especially when the company is actually matching the funds that their employees are putting in. This type of investing is often a good idea for many different reasons, such as the following:

• This is money that you really won't miss since these contributions are automatically deducted from your paycheck on a regular basis

• Some people may think of it as the same as deducting income taxes, but they are entitled to get it back at a later date

• The amount deducted from the pay is not subject to taxation at that point in time

• Employer matched contributions are extra money in your accounts

3. Invest in Mutual Funds

As you make a decision to invest in different types of opportunities, you may want to consider investing in mutual funds. Mutual funds are highly recommended by financial advisors, specifically for those investors who are just getting started as a newbie investor. Mutual funds can be described as securities that provide you with an opportunity to invest in both stocks and bonds as a single transaction. Before you make this decision, however, it is important that you do your homework first since it will require that you start with at least an investment of 0 or more.

4. Look for Treasury Securities

One of the best things about starting any type of investment strategy is that you can diversify. In short, you can basically put your money in virtually whatever you want. This is one of the reasons why some people like to spread their investment out in multiple investment opportunities, including buying stocks and bonds. Referred to as treasury securities, bonds can be an investment that people can benefit greatly from when they are looking for a long-term investment that extends anywhere from 30 days to 30 years. When you put your money in bonds, your investments will need to be made by denominations of at least 0.

5. Penny Stocks

In case you do not have any major money to invest yet, you do not have to stand back and wait until you have thousands in the bank to get you on the road to building up your portfolio. Instead, you can start with minimal funds and a savvy investment strategy that can help you to earn money on anything that you have available. For instance, today many of the newbie and seasoned investors alike are choosing penny stocks to make a quick profit and it is increasingly becoming a preferred way to earn money. It is also available online so the average person can choose their own unique strategy.