So far, the current decade has proven to be a challenging one for long-term investors. If you’re trying to figure out the best places to park money for the long haul, consider a few of the new ideas that are gaining traction in the 2020s. Amid worldwide inflation, ingrained problems with international supply chains, and continuing political instability, it’s critical to focus on investment strategies that work.
What tops the list of wise approaches for earning a decent ROI on retirement and similar accounts? Cryptocurrency is finding its place as an inflation hedge and safe haven vehicle for millions of working adults. The same is true for rental property shares that let anyone take advantage of what the real estate market has to offer. Several old-school favorites are making a comeback, notably precious metals. Gold, silver, platinum, and palladium consistently attract followers in volatile markets and unstable economic times. Blue chip stocks are another long-time choice for investors who want to create wealth slowly. Here are more details about each category.
Cryptocurrency
A decade ago, few people would have considered things like bitcoin and other cryptos as a worthy addition to portfolios. Today, even institutions and governments are getting in on the potentially high returns. Given the ongoing price volatility in the segment, however, be careful to keep crypto holdings at less than five percent of your account total. Another strategy for cryptocurrency enthusiasts are to diversify within the niche by acquiring several of the top alt coins instead of just one.
Rental Property Shares
Investing in real estate is a time-honored approach for those who want to take advantage of owning real assets. Buying shares of properties is one way to avoid making large financial commitments. If you don’t want to purchase individual houses but still want the growth and appreciation potential of real estate, consider acquiring shares of rental properties. The beauty of rental shares is that you can still leverage the power of pro formas to make accurate estimates based on comparable properties, real estate industry statistics, and your own research about a particular investment. From there, it’s easier to decide which shares might be the best ones to add to your portfolio.
Precious Metals
Aside from other common investments to make, precious metals can also be worth your while. Historically, gold and the other three precious metals tend to perform well when the securities markets are tanking. That’s the main reason people gravitate to gold in times of international crises, inflation, and general economic volatility. Gold is easy to acquire as bullion or shares of exchange traded funds (ETFs). Many investors limit their holdings to no more than 10 percent of their total account value.
Blue Chip Dividend Stocks
Blue chips are the most beloved of all stocks on the market. They’re issued by large, well-known companies, many of which have been around for more than 100 years. Within the blue chip niche are dividend aristocrats shares that pay quarterly dividends regularly. Adding these high-value blue chip stocks to a retirement or other long-term investment account can be a good way to aim for a stable accumulation of wealth. Instead of taking dividend payouts, most blue chip enthusiasts prefer to reinvest the quarterly amounts and buy additional shares with the money.
