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The Best Investment Opportunities in 2022

Everyone wants to make money and keep it. To make money, you must invest. To keep your money, you must invest wisely. There are many options, from gold to stocks, Bitcoin and cryptocurrency. This article provides a road map to investment opportunities in 2022. 

The world is changing fast, and with the next year comes some great investment opportunities. Unlike many investment opportunities, some options on this list—such as real estate investing and ETFs—offer passive income and tax benefits. 

The thing about the stock market is its unpredictability. But that doesn’t mean you can’t prepare for unforeseen events. The best investors have anticipated the future for decades and prepared accordingly. 

According to experts like Warren Buffett, the best time to invest is when things are going bad — and we’re in that sweet spot right now. Following the COVID-19 disaster, the economy is slowly getting better. Even though nothing is quite back to normal yet, there are plenty of opportunities for investors to make money.

Why Should You Invest?

The main benefit of investing is that it increases your wealth, which will eventually enhance your purchasing power and help you reach your financial goals. Additionally, investments can help with your retirement, provide a solution during emergencies, and create an extra source of income. It’s always a wise decision to let your money work for you.

You can amass wealth through investing, but you must weigh the risks and rewards. And you’ll want to accomplish that financially, which means you’ll need to have reasonable debt levels, a sufficient emergency reserve, and the ability to ride out market ups and downs without using your money.

Recession Proof Your Future
- Invest in a passive income strategy!

Download the Real Estate Syndication Handbook to learn how to invest in real estate and secure your financial future!

Best Investment Practices

As we move into the following year, it’s crucial to think about what you want to accomplish. It’s also essential to consider what you want to accomplish in the future. What kind of investments do you want to make? Do you want to put money down for a rainy day? Do you want to pay down debt? Do you want to invest for retirement? 

Safe investments can help you accomplish all of these things, but you have to do your research and take specific steps to ensure you’re making the right decisions. Understanding your risk appetite, time horizon, and different types of account is crucial before investing. 

Create a Savings Account / Emergency Fund First

Unexpected medical costs or job loss are two examples of the unexpected twists life might bring. Most personal finance experts advise establishing a 6-month worth of expenses emergency fund before making any capital market investments.

It is wise to keep these savings separate from your regular investment portfolio. High-yield savings accounts are a wise choice for storing an emergency reserve. Should something unexpected happen, an emergency fund can prevent you from selling investments prematurely just because you need cash.

There is no better time to invest if you have some cash on hand and have taken care of your high-interest debt. But before investing, ensure you set up your emergency fund to prepare for emergencies. 

Decide Whether You Want To Invest Actively Or Passively 

There are lots of approaches you can take to investing. Many busy professionals don’t have the time for actively managing investments like stocks and rental properties – particularly when they lack the experience or knowledge to make their ventures successful.  

Fortunately, plenty of lucrative passive investment options are around today, allowing investors to earn strong returns without the hard work. So, consider how much time and experience you are willing to put into your investments and select a strategy accordingly.  

Read. Research. Study 

Some of history’s greatest investors were also keen readers. Consuming news, opinion, or instructional content can help you see things from a broader perspective and make you aware of new or existing but unknown trends.

Another excellent technique to develop good investment habits and stay current on the available options is to discuss with like-minded people. Even the most experienced investor cannot monitor all the activities taking place on the stock market. Numerous people keep an eye on different investment opportunities and can share important information with you irrespective of expertise or experience.

11 Best Investment Opportunities Right Now

Real Estate View

While you work on building your wealth and future, you need to know if you’re making the right investment decisions. The economy is constantly changing, and next year will be no exception. 

People often think of investing in stocks or bonds, but many other options could significantly improve your financial future. Here are the best investment opportunities you should capitalize on in 2022.

1. Real Estate Crowdfunding

Real estate crowdfunding platforms, like Holdfolio, allow investors to access portfolio diversification and residual income streams through commercial and multifamily property investment. All deals are managed from start to finish by experts, meaning investors can enjoy monthly or quarterly dividends and capital appreciation, without lifting a finger.  

Investors can also enjoy capital appreciation and additional hedging against inflation as they undertake ownership in income-producing real estate assets.

Most investors struggle to produce steady cash flow. We ensure our interests align with partners by investing our capital into projects alongside yours. Accredited and non-accredited investors can access and manage investments securely and easily via our online investor portal.

To access high-return, stable, and passive investment opportunities the easy way, contact Holdfolio right away. 

2. Stock Market

One popular active investment option is buying stocks. Buying your preferred stocks involves investing in a publicly-traded company’s shares, which is like investing in the future success of that company. As the stock price increases, you gain money and as it decreases, you lose money.

However, stocks tend to become quite confusing very quickly. Other than selling a stock for more money than you paid for it, there are other ways to generate money. Many stock investment opportunities exist, including dividends, growth, and value investing.

Additionally, investing in individual stocks or a combination of both is one investment opportunity that stocks provide. The fluctuation of indexes like the S&P 500 and the Dow Jones Industrial Index can gauge the stock market’s overall performance.

One of the most varied investment opportunities at the moment is investing in growth stocks. There is good variety among businesses and industries to create a well-diversified portfolio and increase your wealth.

3. Treasury Bonds, Bills, and Notes 

Government bonds are your best first option if you want to earn a little more interest than a savings account without taking on a lot more risk. As of September 2022, they offer yields ranging from 2.46% for one month to 3.58% for 30 years.

The American government fully guarantees the U.S. Treasury’s debt obligations. As a result, if you require access to your money before the debt matures, you can purchase and sell government debt with greater confidence on alternative marketplaces.

However, because of this stability, treasury bonds’ yields may be lower than what you may receive from corporate bonds, with a lower likelihood of debt repayment.

4. Savings Accounts With High Return

Certain online savings accounts produce high yields and interest when you deposit money. These high-yield savings accounts are some of the most accessible vehicles for your money, just like a savings account at your local bank.

Anyone who anticipates needing access to money soon should open a savings account. A high-yield savings account is ideal for risk-cautious investors who wish to reduce their chances of losing money. Since the FDIC insures banks that provide these high-yield accounts, all your deposits will be safe.  

While high-yield savings accounts are considered secure investments, much like certificates of deposit (CDs), you may lose purchasing power due to inflation if rates are too low.

Online banks often provide substantially higher interest rates than traditional banks since they have less overhead. Additionally, the funds are often accessible by swiftly moving them to your primary bank or perhaps even using an ATM.

You can find the most nuanced high-yield savings accounts on Bankrate. The only other option is a savings account, which banks and credit unions offer, but you might not obtain the best return.

5. Corporate Bonds

House in hand

High-grade corporate debt may be wise if you don’t mind taking on a little bit more risk in exchange for a higher return. These bonds, issued by reputable, thriving businesses, often provide greater returns than those of Treasury securities or money market accounts.

The St. Louis Federal Reserve has stats that show that the 10-year high-quality bond average interest rate is 4.57% as of August 2022. In some situations, investing in high-grade corporate bonds may result in losses even though they are generally safe. Below are some of those situations. 

Rising Interest Rates 

Higher rates won’t help your money since bond interest rates are frequently set for a predetermined period. You might also need to sell your bonds for less money than you paid for them if interest rates increase. If you let your bonds mature, you will receive the face value of the bonds plus interest.

Issuer becomes Bankrupt

Bonds are less secure than money kept in bank accounts, despite being often considered relatively safe assets. Focusing on debt issued by respectable companies that are most likely to pay you back is essential. Organizations with lower ratings may offer higher interest rates, but you are also at greater risk of losing money.

6. Exchange-traded Funds (ETFs)

Exchange-traded Funds provide the best investment opportunities for people who wish to invest in stocks but lack confidence in selecting certain companies. Without choosing individual stocks, ETFs are a fantastic investment.

When you purchase an ETF, you invest in a group of businesses, frequently with a theme. As an illustration, a 12-company airline ETF might contain shares of each of them. The firms with the most robust growth prospects may be spread over an ETF that invests in growth stocks.

There are ETFs available now for practically every sector and topic. Buying an ETF entails using the fund vehicle to acquire the financial assets of various companies instead of individual stocks. You can choose the market, approach, or industry you wish to invest in, but not the specific stocks.

ETFs are very efficient both financially and tax-wise. Most ETFs charge very little, while some are free. ETFs can be a terrific tool to manage risks and are excellent investment prospects for those with moderate risk tolerance, despite providing more risky inverse and multi-asset choices.

7. Rental Property

Renting out space can be a terrific investment opportunity if you’re capable of managing your properties. To pursue this action, you must choose the right property, finance it or purchase it outright, maintain it, and deal with tenants. Making wise purchases can help you grow wealth and produce passive income.

Rental property is a wise option for long-term investors looking to maintain their homes and produce consistent cash flow. However, it isn’t as straightforward as making a few clicks and buying a cryptocurrency, ETF, or shares on the stock market. 

Since you will have to deal with tenants, you must prepare for calls, inquiries, and complaints virtually any day. Additionally, the real estate market is unpredictable nowadays, and mortgage rates are rising. But it is still a lovely time to finance the acquisition of a new rental property. 

When it’s time to retire, you’ll probably have a strong cash flow if you keep onto your investment properties, steadily pay off debt, and increase your rental income.

Furthermore, you’ll need to partner with a real estate broker to find rental housing. Alternatively, you can try to develop a network of people who might be able to find you the best deals once they become available.

8. Money Market Mutual Funds 

Money Market Mutual funds are open-ended funds that make investments in short-term securities. Even the most excellent money market funds often have low rates. As of mid-September 2022, the best were above 2%, which outperformed the average savings account annual percentage yield (APY).

These funds give investors absolute liquidity, unlike Treasury instruments and corporate bonds: You may withdraw your money at any time, and there is essentially no volatility in the funds.

Several banks also provide money market mutual funds. These funds may still be available for investment through your bank if you don’t have a brokerage account or don’t want to open one.

9. Natural Commodities/Precious Metals 

Many stores, businesses, and organizations pay for gold and other precious metals because they are valuable. The supply of gold, silver, platinum and other precious metals is limited, just like it is for real estate. And since they are not based on national currency, their value remains intact.

Although you can purchase gold and other natural commodities in the form of bullion, investing in a commodity-backed index is considerably more practical.

While gold and other precious metals are considered commodities and are linked to the stock market, they are pretty autonomous. If traditional equities lose value, the price of commodities such as gold will increase. Therefore these commodities provide some of the best investment opportunities to hedge against a stock market slump. 

10. Cryptocurrency 

Cryptocurrency is an electronic-based currency that serves as a medium of exchange. Particularly in the last several years, it has grown in popularity as many investors poured money into the asset, driving up prices and luring more traders to the market.

Bitcoin is the most popular cryptocurrency. It attracts many traders. Bitcoin shot up to almost $30k per coin in 2021 from about $10K at the beginning of 2020. After that, it rocketed significantly above the $60,000 benchmark before declining in 2022.

Cryptocurrency is an ideal opportunity for investors ready to take on a little risk in return for the potential for much higher profits. Investors who avoid taking risks or require any safe investment should avoid it. Cryptocurrency is not supported by the FDIC or by the authority of a firm or a government. The only factor influencing its value is what buyers are willing to pay.

11. NASDAQ-100 Index Funds

Investment

NASDAQ-100 index funds provide excellent investment opportunities for investors who want exposure to some of the biggest and greatest tech giants without picking or evaluating specific companies.

These funds are based on the top 100 Nasdaq companies, making them some of the most prosperous and reliable businesses. These businesses include Apple, Meta, and Microsoft platforms, each of which accounts for a sizable fraction of the entire index.

This option is excellent for stock investors seeking growth. Investors must prepare to put up with high volatility and make a long-term commitment of at least three to five years.

These stocks have the potential to decline as with any publicly traded company. While some of the most influential tech businesses are represented on the Nasdaq-100, they are also frequently some of the most expensively priced.

Because of their high valuation, they are probably susceptible to a swift decline in an economic downturn, yet they might have a swift ascent in an upturn. You also get rapid diversification with a Nasdaq-100 index fund, protecting your portfolio from the demise of any one company.

Recession Proof Your Future
- Invest in a passive income strategy!

Download the Real Estate Syndication Handbook to learn how to invest in real estate and secure your financial future!

Final Words

Investing is exciting, but it is a tricky business. If you make the right moves, you can watch your investments grow in value. If things go wrong, you can lose a lot of money, but that’s a risk you have to be willing to take. 

There’s no pressure or rush, but you must get things right. It would help to consider certain vital things before choosing an investment option. It would help if you thought about your risk tolerance, timing, investing knowledge, creditworthiness, and the amount of money you have available as you choose investment options.

Once you’ve made a few successful investments, it’ll become easier to invest more and more since you have more money to put towards your portfolio. If you are looking for exceptional yet accessible investment opportunities to increase your cash flow, diversify your portfolio, and earn truly passive income, contact Holdfolio today.

Ready to invest in real estate?

We make real estate investing simpler, more transparent, and accessible to individual investors.

TJ Lokboj

TJ Lokboj is an entrepreneur with a passion for adding value to the real estate investing industry through adopting digital transformation. Some of TJs companies have been featured in Yahoo Finance, Morningstar, Benzinga, and many other publications.

TJ is the managing partner of Holdfolio, a real estate investment firm that leverages a premier crowdfunding platform.

He is also a member of the Forbes real estate council and co-founded SyndicationPro, which is the #1 syndication management SaaS solution in the market today.

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Ready to invest in real estate?

We make real estate investing simpler, more transparent, and accessible to individual investors.