Making an investment is an important decision. Not every asset is created equally. A lot of people peruse the final list each day on Wall Street to find the best fund to go for, others look at the asset recommended in the main story in the New York Times, others still follow what wealthy investors such as Barron and Mctague do, and then there are those who will read any report from Rockwood and make their decision based on that. According to Dan Purjes, these are all excellent options. At the end of the day, what matters is that research is done before making any investment, particularly for the more conservative among us, who can’t squander money away.
Dan Purjes on Good 2018 Investments
The first investments that Dan recommends are US savings bonds. These are offered by the US Treasury and are fixed rate, inflation adjusted bonds. Because they are government-backed, they are offered at a market rate while at the same time providing a guarantee against a default. This means they are some of the safest investments out there.
The second option is the high yield savings account. This is an alternative form of saving that offers slightly higher yield than regular product albeit in a safer way. It is only suitable for those who are happy to tie their money up for a slightly longer period of time. The account comes with a fixed rate of interest and the market price is highly competitive.
Then there are commodities. Precious metals in particular are very smart, providing an alternative against fiat currencies. Precious metals are also protected against inflation and do not respond to economic uncertainties. Besides precious metals, agricultural products are also a good option to diversify a portfolio and therefore recommended this year.
Individual stocks may also be considered. These must be long-term investments, providing people with equity in an enterprise by being a shareholder. When buying stocks at a right Price, the individual can benefit from the growth in the company they have invested in. This means they get both share price returns and dividend. That said, there is no guarantee that the company will infect grow.
Dan also recommends fixed unit trusts. This is a type of mutual fund that comes with a fixed return calculated by the number of units someone holds. Investment trustees managed these funds, and investment gains are divided by them. This type of investment guarantees and annual returns.
Last but not least, there is the target date or lifecycle fund. Again, this is a type of mutual fund managed by trustees. It guarantees that the investor can access their phones wants a certain period of time has passed. This means fixed returns yields are enjoyed, often of between 5% and 7% which is quite significant.
Regardless of which investment strategy somebody chooses, it is important to recognize that are never any true guarantees. Nobody should ever invest money that they cannot afford to lose.