You probably hear the word “investments” a lot, but have you ever been profoundly interested in it? If you’re employed, chances are the only investments you’ve made are health insurance and retirement funds.
Those two are definitely essential and beneficial, but there are several more investments that can improve the quality of your life as well as your family’s. If you’re not yet adequately knowledgeable about investments, here’s a simple guide about the top investments you should make during the course of your lifetime:
1. Life Insurance
The best age to invest in life insurance is technically after your birth because as you get older, the policy becomes more expensive. However, that’s not an excuse to opt-out of life insurance if you’re already an adult. Regardless of your income level, marital status, and age, getting life insurance should be part of your financial goals.
Roughly 43% of Americans aren’t insured, and the rate continues to decline as marital rates decrease, notwithstanding the benefits of life insurance, which is to financially secure households whose main provider passes away. We can gather that uninsured Americans probably never see themselves to be married, hence they don’t see life insurance being necessary.
However, with or without your own family, somebody has to take care of your funeral expenses if you pass away, and that would be a burden to that person if you aren’t insured. Therefore, consider at least final expense insurance, which is mainly designed to cover for your funeral expenses. You can assign beneficiaries for it, too, who may use the money for any purpose other than your funeral expenses.
2. Education and Career Advancements
If you’re about to go to college, consider investing in a 529 Plan, a type of college savings plan designed to let you save money for higher education. Your funds can be allocated to various investment products to make it grow without tax deductions until they can be withdrawn to pay for your university education.
You may also consider the Coverdell Educational Savings Account. This requires a $2,000 contribution per year and may have benefits not offered in a 529 Plan. There’s also the U.S. Savings bond, which is suitable for less risk-averse investors. The interest you’ll from here is also tax-free, provided that you use it to pay for higher education.
As for career advancements, consider certifications that can upgrade your skills and improve your credentials. You may obtain them by taking college courses, online courses, as well as participating in seminars and workshops related to your industry.
3. Real Estate
Investing in a house is definitely more cost-efficient than renting one, specifically if you’re going to live in it for more than five years, which will likely be the case if you plan on having your own family. Houses and other types of real property are also smart investments in general, particularly if your goal is to earn a profit. Fund your properties with a real estate investment trust (REIT) to protect your personal funds from losses due to market uncertainties and risks, such as price volatility.
4. Side Business
A small side business doesn’t require huge capital, so can easily earn your investment back through your revenue. Moreover, having a business gives you an opportunity to do what you love, which is a good break from the stress of your full-time job. Once it prospers, you may even quit your 9-5 job and start turning your small business into an empire.
Break the notion that investing is only for the rich; every hard-working individual deserves to have an opportunity to earn a fortune, and these beneficial investments offer just that, in addition to the financial security of you and your loved ones.