Where Should You Invest Your Money?  The Best Places to Diversify Your Investments

Where should you invest your money? A question you have probably asked yourself as you start accumulating more money.

Investing In A Savings Account

According to CNN Money, “The average savings account has a measly 0.06% APY (annual percentage yield, or interest), and many of the nation’s biggest banks pay rates as low as 0.01%.”

The Best Places to Diversify Your Investments

The obvious and most common place to invest your money is the stock market. This can include a brokerage account, 401k’s, IRA’s, and individual stocks of companies.

1. Stock Market

A brokerage account is an arrangement between you ( the investor) and a licensed brokerage firm permitting the investor to deposit funds with the firm and place stock/bond orders through that brokerage.

Brokerage Account

These each have slightly different caveats, but all are for your future retirement. Certainly, one of the best things you can do is have a plan for retirement and invest a percentage of money into a retirement account.

401ks & IRA’s

I don’t think most people should invest in individual stocks and if you are hoping to get rich quick by doing this it will typically spell disaster for you. Now I’m not completely against picking a few, but only if you are willing to lose that money and will be okay financially if you do.

Individual Stocks

If you are starting your family and gearing up to have kids, another great option to invest some money is a 529 Plan. This is simply is a tax-advantaged savings plan created to encourage saving for future education costs.

529 Plan

The Best Places to Diversify Your Investments

Real estate investing, especially for rental properties can be a bit overwhelming for a newbie, but can also be an incredible wealth builder for your future.

2. Real Estate – Rental Properties

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