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What Are The Best Investment Ideas For 2022?
Did you know that almost 1 in 2 Americans are not investing their money? According to GoBankingRates polls presented by Yahoo! Finance, over 47% of respondents are not taking advantage of major investment opportunities such as 401(k), real estate, cryptocurrency, mutual funds, stocks, and bonds.
Don’t Americans think that investments are safe? More often than not, the lack of understanding and knowledge is at fault. Many households feel unsure about investing their money because they believe it would be safer to “store it under the mattress”.
This strategy is partially linked to the long-lasting economic repercussions of the pandemic. Households worry about debt recovery; therefore, they are less keen on investing. Yet, experts believe that Americans would be more likely to reconsider investment options if they understood the long-term impacts on their wealth. Are you wondering whether it is time to build an investment portfolio to recover from the pandemic low? Here are the best investment ideas for 2022.
Gold is one of the most unique assets you can invest in in the sense that its value remains relatively unchanged. While currency and stock values can fluctuate, gold value doesn’t respond dramatically to recession and inflation crises. Due to its nature as a rare metal, its value tends to grow steadily.
Yet, you may find it tricky to organize real gold nuggets or bars as a way of building an investment portfolio. Instead, you might consider using gold with a Roth IRA. Indeed, the Roth IRA distributions are tax-free. Consequently, your distributions will not affect your tax bracket, nor will they affect you if tax rates rise after your retirement. Additionally, a gold-backed IRA has no Required Minimum Distribution (RMD) age, which means you choose to pass the payout to your heirs instead.
Forget crypto investments and go to NFTs
Big brands are currently focusing their investment strategies on a specific crypto-inspired portfolio NFTs (nonfungible tokens). Companies such as Taco Bell, Visa, and Pizza Hut are securing digital assets as NFTs. Why are NFTs so popular?
According to experts, NFTs are trendy because they bring cutting-edge technology that has the power to redefine how brands engage with their customers. The more companies and individuals adopt NFTs as an investment strategy, the more value and utility the tokens gain.
More than an engagement tool, NFTs can become a stand-alone revenue stream, both for creators and investors. So, if you are eager to jump on the NFTs bandwagon, take a look at our article, where we identify the best platforms for your needs.
Real estate investments are a favorite for newcomers because they are fully tangible assets. Property value and rental income increase steadily and build profit for investors. Investopedia recommends some well-established and recently arisen opportunities to make money with a real estate portfolio. Increasing property value is a popular approach for sales profit, preferred by house-flipping specialists.
However, it is a fast-paced investment strategy that requires immediate capital availability. Residential and commercial rental income are long-term strategies, enabling investors to recoup their costs through rental payments.
Real estate trusts and mortgage investment corporations can also provide a form of income for real estate investors who do not want to own a property.
Investment Ideas for 2022: Pharmaceutical Stocks are the new Big Players
The pandemic has taught investors one important lesson: Pharmaceutical companies are growing, and they are going to become one of the most valuable assets in an investment portfolio. Indeed, patented areas of treatment present profitable opportunities. The COVID-19 vaccine has been shown to benefit the investors who had the foresight to pick the companies behind Pfizer or Moderna vaccines.
But pharmaceutical research is a never-ending sector. The US FDA regulation reviews all medicines for commercial approval, so it can be a long-term process before a new pharmaceutical drug goes to market. Yet, investors can get ahead of the FDA process by following trends, such as gene editing, oncology, and alternatives to the COVID-19 vaccines.
Another trend worthy of investors’ attention is renewable energy investment. Green energy investment strategies focus on companies working on renewable energy resources and the technology improvements behind these sources. Renewable energy investments are part of a socially responsible investment portfolio, and they are expected to grow significantly to reflect governmental actions and decisions.
While dictated by a philanthropic interest, renewable energy investors are looking at substantial financial returns in the upcoming years.
Are you ready to start your investment portfolio? With more than one option to choose from, we strongly recommend working on the best strategy for your money with a specialist wealth management advisor. Make sure to mention the best 2022 investments as part of your conversations!