Investment may be the furthest thing from your mind after the incredibly challenging year that 2020 has been. However, the future’s looking bright in 2021. Investment opportunities are rising from the ashes, and there are so many ways to make your money go further. Where will you invest your funds? Here are some of the most popular investment options as we enthusiastically wave goodbye to 2020.
While 2020 wasn’t kind to all commercial property owners, it will be a worthy investment in the years to come. Out of all possible investment opportunities, real estate offers some of the most consistent returns. In the words of film actor Will Rogers, “real estate is the best investment in the world because it is the only thing they’re not making any more.”
There are also many ways to go about investing in real estate. You can hire a management company to manage your tenants, or you can use an online investment platform to invest in property without having to be a landlord.
Peer to Peer Lending
Peer-to-peer lending, also called P2P lending, is a relatively new phenomenon. Still, it’s catching on fast. As more Americans find themselves turned down for traditional financing, they are looking for alternatives. You can be that alternative.
With P2P lending, your money is pooled with that of other investors to lend to an individual through a safe platform. You then receive a payment each month with interest. What’s unique about this investment type is that you can set your desired risk level by establishing the kind of borrower you’d lend to. The riskier the borrower appears to be, the more interest you’ll usually receive.
Though there’s a huge number of business owners in the United States, it’s not everyone’s ideal money maker. Rather than investing money into your own business, why not put some of it into an existing venture you think is going places?
Equity crowdfunding is the process of purchasing shares of a startup company that needs funding to launch. The business owner usually has an exceptional idea but can’t finance it alone.
Of course, there is always a chance that new business won’t make it, but what if they do? Oculus VR, Exploding Kittens, and even the Veronica Mars movie were all successful crowdfunding ventures. You can invest a little or a lot, but there is always a chance of a significant payoff for your faith and trust.
Since the beginning of time, gold has been a tangible asset that holds a lot of value. It retains its worth and holds its own against stocks. When times are tough, gold prices remain strong. Therefore, it makes complete sense for it to be a worthwhile investment option in 2021.
You can purchase gold coins and bars or even invest in gold mining stocks or gold accounts. This liquid asset is perfect for those who are just dipping their toes in the investment market.
Some industries have not been performing well on the stock market in recent months. Still, there is potential for them to be lucrative options in the coming years. For example, the entertainment and parks industry took a hammering in 2020, which means stock prices may be affordable now, and worth more in just a short while. The same goes for restaurants, retailers, energy, and healthcare.
2021 could be your year. Rather than sit on your money while earning very little interest, see what you can make of it. There are plenty of investment options that may be worth checking out.
Danis Woods in Businessman, investment banker and stock exchange traders. On the same time he loves writing financial blogs to shed lights on different aspects that new and existing businessman are not aware of.