1. RIPPLE at $2 a coin & showing profits bigger then BITCOIN!
While “invest in the stock market” is some of the most basic advice you’ll ever read, please hear me out on this one. While everyone knows that investing in the stock market has historically paid off, there are far too many people who don’t trust the financial markets and choose to sit on the sidelines altogether.
Then there are people who think the stock market is so overvalued right now that they would be crazy to jump in. But, here’s the thing: Nobody is telling you to pour every extra cent you have into stocks. Instead, I’m suggesting you invest small sums of money over time using a method called “dollar cost averaging.”
Dollar cost averaging requires us to trickle our money into investments over any length of time. It could be 12 months. It would be 18 months. Heck, it could be five years.
Colorado financial advisor David Henderson of Jenkins Wealth goes further to explain how dollar cost averaging works: “When the market is high, you buy fewer shares and when the market is low you buy more shares,” he says. This means that, over time, you will have a lower average share price using this method. Obviously, it’s easy to see why this would be beneficial.
Now that we’ve talked about the importance of investing in the stock market, let’s talk about exactly where to invest your money. What are the best tools and vehicles we can use?
This is yet another situation where the options are overwhelming. Still, I typically suggest people get their feet wet with mutual funds or ETFs.
If you have a financial advisor working on your behalf, they may be able to weed out the well-performing actively managed mutual funds from the ones that aren’t doing so great. Otherwise, you can invest in index funds, which are not actively managed but have a long history of solid returns.
If you have a brokerage account already, then you may want to stick with it. Otherwise, you’ll need to find a new place to help you invest your funds. One company I always suggest is Betterment. With Betterment, your money can be invested in ETFs and they don’t charge a fee for managing these for you. Plus, they actually pick the ETFs you invest in based on your appetite for risk, investing goals, and other factors.
What does that mean? That means that you can invest your hard-earned money, then sit back and enjoy the returns and let them do the hard work.
If you want to have more control on your investments, online brokerage firms like Ally Financial, TD Ameritrade and E-Trade make it easy to stay in charge with low fees and easy-to-use platforms. Plus, there are a multitude of other "robo-advisors" to choose from.
As a final note, there’s one more simple way to invest in the stock market with even less effort – boosting how much you contribute to your work-sponsored retirement account. Arizona financial planner Charles C. Scott says this may be your best option yet – especially if you’re not contributing enough to get a match from your employer.
“Every dollar you contribute could get a dollar match,” says Scott. “That’s a 100% return on your investment.”
If you’re not making the most of your 401(k) or contributing enough to get a match, then you’re probably best starting there.
I’m certainly not. I tried investing in physical real estate seven years ago and almost lost my shirt. I learned a lot of lessons from my foray into becoming a landlord, the biggest of which was that I don’t need that kind of stress in my life.
Fortunately, there are plenty of ways to invest in real estate without dealing with a physical property. One option to consider is investing in real estate notes. I got started investing into real estate notes because a really good friend of mine was crushing it with real estate and offering his friends the chance to invest.
He would buy a pool of real estate properties, and then investors like myself would invest money into his project. From there, he would manage the properties and pay me a dividend or interest off that money. For me, this has been an attractive way to invest money without having to be a landlord or deal with tenants.
Obviously, there is a ton of risk in a situation like this. You have to have a lot of trust to invest in real estate notes offered by an individual.
The good news is, there are other ways to invest in real estate outside of real estate notes. One option I’m really excited about is a company called Fundrise. Fundrise offers an investing scenario similar to the one above. They buy commercial properties and allow investors to invest small sums of money. Obviously, this is yet another hands-off investment. You may own part of a commercial real estate project, but you don’t even see or deal with the property itself.