Investing for your future is a fantastic way to ensure you continue to grow your finances and reach your financial goals. There are multiple ways in 2023 that you can invest your money. Working alongside a financial advisor or utilising an expat financial planner will ensure you are only putting your hard-earned savings into worthwhile investments. Here are a few of the best long-term investments you can make in 2023.
Bonds
Bonds are a great option for those looking to invest long-term. If you aren’t sure what bonds are, don’t panic! Bonds are loans that you make to a company or government, and in return, the borrower pays you interest over time with preferences that you both agree to and sign to. As your bond matures, you will receive a repayment of the amount of the original bond.
Stocks
Stocks have the potential to grow over a period of time, therefore, making them a profitable and worthwhile investment. Investing in stock is the practice of buying a piece of ownership in a company that you believe will have continued success. As the company grows, the value of your stocks will increase.
Homeownership
A popular but sometimes tricky investment depending on your funds, is purchasing properties. These properties may gain value over time as well as contribute towards a steady income monthly if you decide to rent these out. It is important to consider that it can take a while to get your investment back if you want to ‘cash in’ as you will have to undergo the process of selling.
Mutual Funds
If you are looking to invest in multiple assets, including property, bonds and stocks, you may want to consider mutual funds. A benefit of this type of investment is that it will be managed by professional investors who can diversify your portfolio and eliminate risky assets.
Dividend Stocks
This can be a great way to gain income from investing, as this pays out portions of your profits in the form of dividends. A dividend is a form of net business profit that publicly listed businesses use to reward their shareholders.
Index Funds
This is usually a safe investment for those looking to reduce risk. An index fund is mutual and tracks a specific market resulting in you having a group of stocks rather than a singular one.
Cryptocurrencies
This is the newest form of investment, and its popularity is continuing to grow. Cryptocurrencies are an asset that has the ability to offer higher returns. One thing to consider is that because this is a newer way to invest, it comes with risks, and you should only use money that you can afford to lose just to be safe.
Foreign Stocks
This is an excellent way to add a new asset to your portfolio. It also lacks any risk. Foreign stocks also offer the opportunity for higher returns than U.S. stocks.
Value Stocks
Value stocks are exactly what you would think they are, the cheaper options within the market. These trade for less than their intrinsic value. (Intrinsic value – the measurement of what your assets are worth and is different to the current market price of an asset)
Exchange-Traded Funds
Also known as ETFs, these trade on stock exchanges and are similar to mutual funds. Due to the way these trade, they are more liquid than mutual funds and can be purchased and sold in smaller amounts.
These are just 10 of the best ways to invest in 2023. The route you take with your investments will be personal to your own circumstances. It’s important to seek advice and utilise the knowledge of an expert within this field. Working alongside a financial advisor or using a financial planner will only benefit you in the long run as they will be able to guide you to make the best investments, increasing your chances of success and best profits. If you are an expat, you may want to consider an expat financial advisor or planner with your investments. Investing for your future and the long term is important if you want to grow your finances and hit your goals. Ensure that you conduct thorough research and seek advice before you make your first investment.
