In this blog, we are going to talk about the best investments you can make in 2021, as you know to enjoy your life to the fullest and live a memorable life after your retirement investing is very important.
We have seen in 2020 how coronavirus has affected the economy and how a stable economy fluctuated so high, but the fact is that those people who invested their money were immortal to these kinds of problems.
Why do we have to invest our money?
Investing is very important because it will give your returns throughout your life and after your retirement also. It is also a very good source of income in simple language who don’t want to earn 300 t0 400 bucks extra per month by doing nothing just using your brain.
It is seen that investing is profitable from every side until and unless you are investing without any knowledge. Investing without any knowledge is very much dangerous, it’s like jumping right in the middle of an ocean.
Besides, investing grows your wealth it can pay for your unexpected expenses or it can fund your vacations and that’s also without doing any hard work, just using your brain and analyzing the stock market.
The five best investments you can make in 2021 is:
1) Rental properties:
The first investment in our list is rental properties, so this doesn’t need an introduction as you all know what it is all about. Renting properties is a great investment if you can manage your properties.
Over the past few years, we all have seen that the price of properties is shattering the roof and 2021 will be a great year if you want to rent out your properties.
If you want to rent out your properties it has to be in a good place and also in good condition and then simply find a good tenant and rent it out. However, the process is kinda long because there is a lot of paperwork and also a lot of legal work.
The second investment on our list is Cryptocurrency. A cryptocurrency is a form of digital currency that you can use to buy goods and services online. It uses an online ledger with strong cryptography to secure online transactions.
Nowadays, Cryptocurrency is in a massive trend. It was invented to act as a medium of buying and selling, now the prices are growing so high it will be a good investment also.
Bitcoin is the most popular form of Cryptocurrency because its price fluctuates a lot and therefore it attracts a lot of investors. The price of Bitcoin at the end of 2020 was above $20,000 and in January 2021 it was $40,000 and in February 2021 it was $50,000.
However, it is not for investors who are seeking low-risk investments.
3) Stock market dividends:
The third investment on our list is stock market dividends. So this one also doesn’t need any introduction because as you know what is the stock market is.
Apart from that let me explain to you what dividends are, dividends are portions of a company’s profit that they give to their shareholders, usually on a quarterly basis.
Dividend stock funds are common for a lot of investors.
4) S & P 500 Index Funds:
The fourth investment on our list is S & P 500 Index funds. It is a fund that is based on many large companies in the world in simple words, it comprises the most successful companies. For eg: Amazon and Apple are the most prominent members of it.
This includes companies from each and every industry in the world, it will help you to own a piece of all big companies in the world. It also offers immediate diversification and it is best for investors that are beginners.
5) Nasdaq-100 Index Funds:
The last investment on our list is Nasdaq-100 Index Funds. It is quite similar to S & P 500 Index Funds. It is a fund based on the 100 biggest tech companies in the world, that the most stable and successful ones.
It includes Apple, Facebook and Microsoft.