It may be hard to believe, but the new year is right around the corner. There’s no better way to start off the new year than by planning, or at least thinking about, your financial strategies for 2018. Whether you are a first-hand investor or you feel pretty experienced in the matter, determining your strategy for the new year is sure to help you reach your investing goals. We’ve gathered a few of our favorite investments that you should add to your investing strategy in 2018. Max out your 401k or Roth IRA When it comes to investing for your retirement, starting sooner rather than later is always better. Whether or not your employer provides you with a 401k, it is still a good idea to have a retirement account in place. With a 401k, you can contribute up to $18,500 each year, which does not include employer matching. And if you are 50 or older, you can contribute an additional $6,000. If you don’t happen to have a 401k, you can still save for retirement by opening a Roth IRA account. Max contributions for a Roth IRA are $5,500 for a year, and $6,500 if you’re 50 or older. This year, make a goal to max out your 401k or Roth IRA. The more money you can contribute, the better off you’ll be when you near retirement. This may possibly be one of the best decisions you can make this year. Diversify your money The worst mistake you can make with investing is not diversifying your money—investing in a combination of different things: stocks, bonds, short-term investments, etc. Diversification is important as it lowers risk, it allows you to enjoy more benefits from your investments, and it can provide you with more opportunities to maximize your earnings. Invest in Real Estate Real estate is one investment that will continue to increase in value, which means it is one investment you can’t go wrong with making. Real estate can provide you with security, and it can be considered a great long-term investment if you hold onto it for a number of years. It can also be a great form of passive investing if you decide to rent out to individuals. Whether you decide to fix and flip properties or manage rentals, real estate investing can be a very lucrative form of investing. Invest in stocks Investing in stocks is one of the best ways to give your money a chance to grow over the long-term. Many younger people seem to avoid stocks, but you may want to reconsider the option if you are trying to save for a far-off goal such as retirement. In the past 80 years, stocks have returned almost 10% annually, which makes them a fantastic investment. Although the stock market does drop at times, if you ride it out you’ll be better positioned for growth once the market recovers. Pay off your debt You may be wondering why we added this one to the list as it doesn’t seem like a traditional investment. But, did you know that having any type of debt is basically the opposite of having an investment? Plus, holding onto debt can be more costly than investments are profitable. That’s why getting rid of debt is such a great idea, as it will allow you to avoid paying lots and lots of interest. Once you pay off your debt, the payments you would’ve been making on your credit card or loan can be invested instead. That’s a pretty smart investment decision if you ask us! Start 2018 off on the right foot by figuring out your investing strategy now. Let us know in the comments below how you plan to invest your money in the new year.
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