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The Best Investment Portfolio for 2016 and Beyond

The Best Investment Portfolio for 2016 and Beyond

Simply put, there is a lot to know and a lot to learn about investing. There are dozens of different kinds of investment vehicles and countless options among those for investing your money. Before you start putting your hard-earned money away, it’s best that you understand the basics of where it’s going and your best options for investing in 2016.

The Principles of Investing

Before looking at specific types of investments, let’s review some of the basics of investing. The very, very simple summary is that you give away some money, wait, and receive more money back after a certain time.

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It’s also helpful to understand what investing is not. For one, it’s not a way to make money overnight (in most cases). It’s not something to put all of your eggs in–all investments involve a degree of risk. And it’s not something worth putting money into if you have high-interest debt obligations to pay off because the chances are you’ll just end up accumulating more debt than returns on your investments.

That said, if you’re able, the sooner you invest, the better. It’s a snowball effect: The sooner that you put your money into something that will make you money, the sooner you make that money, which you can put back into investing. Rinse and repeat. The best time to invest was yesterday, and the second-best time to invest is now.

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Finally, you’ll want a diverse portfolio. That is, it’s best if your investments are split among different vehicles. If you’re all set to invest, make sure you have the following investments in your portfolio this year.

Mutual Funds

If you’re just starting out, mutual funds are the best way to grow your money. While it will take some time to see a return on this investment, they’re low-risk and almost a guaranteed profit. A mutual fund works by pooling together money from multiple investors who share a common goal and investing the money accordingly. Here are the best mutual funds you can invest in in 2016:

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  • Vanguard 500 Index Fund: Based on the S&P 500, this fund has had its slight ups and downs. But taking a longer-term look at the fund shows its almost doubled in value over the past five years, and it looks to continue to grow. It’s basically a guaranteed profit.
  • Vanguard Health Care: This fund is split among different health sectors such as biotech and healthcare technology. While Vanguard labels this fund as high risk and high reward, an aging Baby Boomer population is going to put these services in high demand.

Stocks

A stock is a portion of a company that you buy into, and as the company does well, demand for the stock rises, meaning your stock increases in value. The best stock investments you can make are in companies you expect to continue to do well. But, if you want to make a greater profit (with a higher degree of risk), you’d do better to choose companies that you expect to grow in the future. Here are your best stock investments for 2016:

  • Apple (AAPL): Of course, the best time to buy Apple was years ago. But don’t be fooled: this is still a good stock. The past year has seen the stock fall, meaning that it’s cheaper than it has been in two years. With a broadening ecosystem and a new headquarters, there’s no doubt that Apple’s stock will rise again.
  • Tesla (TSLA): The electric car company basically has the rapidly-growing industry cornered and is set to release its first consumer electric car next year. It’s a disruptor on the ground floor, just like Apple (AAPL) was, and it’s just announced its iPhone.

Commodities

Commodities are fairly easier to understand, as their value comes from physical objects. Better yet, they’re always in demand. Unlike a stock, you never have to worry about a commodity going out of business or making bad press. Here are three of the best commodity investments you can make:

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  • Alternative energies: If you’re interested in short-term investments, you might look instead at investing in crude oil. But taking a long-term view of energy shows that green and renewable energies like solar, nuclear, and natural gases are the way of the future. Their demand will increase this decade, and surely in the decades following.
  • Lithium: This precious metal isn’t as popular as gold, silver, or copper, but it’s due for a huge surge in demand, as it’s one of the main materials used in batteries. With a car industry that will see a greater reliance on batteries in the future, lithium will be coming out on top.

Real Estate

In simple terms, your investment comes in the form of buying a property, such as a house, an apartment, or a condo. While you’re responsible for paying the mortgage on this property, as well as for its upkeep and repairs, you can make money by renting out the property, or by “flipping” it by making renovations and selling it for more than you paid.

Your safest investment would be to buy a property that’s in an area of high-demand. With that in mind, consider these options for 2016:

  • College apartments and houses: There’s always an influx of students every year, and with tuition rising, across the board, more students will be looking for cheaper off-campus rentals than living in a dorm.
  • Real estate in trending cities: Homes in cities such as Detroit, which is on the verge of economic recovery, and Austin, which constantly ranks as an increasingly popular city for millennials, will no doubt be in higher demand in the coming future.

These are just a few of your investment options, but you would certainly do worse putting your money elsewhere. Look at these investments as opportunities to learn more about how investments work, and soon enough, you’ll be on to more complex (and hopefully higher earning) investments.

Featured photo credit: http://www.lifehack.org/ via lifehack.org

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Published on July 4, 2018

Top 10 Recommendations on Money Management Apps

Top 10 Recommendations on Money Management Apps

Don’t want to overspend your budget, swipe your credit card too many times, and feel like a financial mess? Instead of beating yourself up for the bad financial decisions you’ve ever made, create a new plan!

The solution is simple, save more and spend less. But, we all know it’s easier said than done.

One problem is finding quality apps that save you time and money, and aren’t just hype.

Luckily, there’re many great money management apps available at your fingertips. Here are 10 reliable money management apps that can help you save money, and crush debt.

1. Personal Capital

    When was the last time you’ve tracked your net worth? Probably months ago or maybe never. Personal Capital allows you to easily track your net worth and plan for retirement.

    Here are some of its main features:

    • Sync many investment accounts, and expenses (mortgage, credit cards, etc.) in one place
    • Discover hidden fees and how much they’re affecting your retirement plan
    • Wealth management for investors requiring a long-term strategy

    With Personal you’re free to track your expenses and net worth.

    Available for: iOS and Android

    2. Mint

      If your smartphone could only install a few apps, Mint would be one of them. Why? Because Mint tracks all your balances and bills in one place.

      Here are some of its main features:

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      • Effortlessly track all your bills and balances in one dashboard
      • Categorized expenses to understand where you spend your money
      • Uncover hidden fees, and determine your investment style with sophisticated retirement tools.

      Feel at ease with managing your money by a reputable company that isn’t going anywhere.

      Available for: iOS and Android

      3. YNAB

        Everyone needs a budget, there’s no way around it. YNAB (You Need A Budget) is an easy to use app that will change the way you think about money. Their motto is to “give every dollar a job”, and you’ll quickly discover why.

        Here are some of its main features:

        • Easily sync all bank accounts in one place
        • Visually see your debt paying progress with eye-catching charts and notifications
        • Customized categories setting saving goals

        The best part about YNAB is the community that comes along with it. You can hop on the YNAB forum to receive support, listen to the YNAB Podcast or stay tuned for their weekly videos.

        Available for: iOS and Android

        4. Wealthfront

          Albert Einstein once said “compound interest is the eight wonder in the world”, and for a very good reason. The problem is, most people are scared or unwilling to learn the basics of investing. This is why Wealthfront is the perfect solution for the hands-off investors.

          Here are some of its main features:

          • Variety of investment account options including IRA, Roth IRA, and more
          • Your portfolio composed of 7 different asset classes
          • Automatically rebalanced portfolio
          • Daily tax loss harvesting

          Wealthfront is perfect for people requiring investment guidance, or prefer a hands-off solution.

          Available for: iOS and Android

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          5. Clarity Money

            If you’re staying on top of your budget but want to take your finances to the next level, Clarity Money can help you. Clarity Money helps you stay under budget and build a personalized savings plan.

            Here are some of its main features:

            • Easily cancel subscriptions with one click
            • Synchronize bank accounts fast
            • Transfer money effortlessly between different accounts

            Clarity Money isn’t an app that does it all. But, it does make transferring money and canceling subscriptions fast and efficient.

            Available for: iOS and Android

            6. Acorns

              What if there was a way to quickly gain confidence in investing your money, without too much risk? There is, and Acorns is your solution. With Acorns’s technology, you’re able to make investments as small as $5.

              Here are some of its main features:

              • Automatic contribution option
              • Customized portfolio tailored to your needs
              • Low management fees ranging from $1-$2 per month

              Stop wasting dollars on expensive coffee. Instead, invest them towards a brighter financial future.

              Available for: iOS and Android

              7. Albert

                Do you budget by only subtracting your expenses from your income? If so, how would you discover any overpayments or extra money you could save? This is where Albert shines, and it does it all free.

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                Here are some of its main features:

                • Receive notifications for overpayments, hidden fees, and low balances
                • An Automatic budget that’s built around your spending and income
                • Easily track debt and set new financial goals

                While Albert does offer a paid option, most of its core features are FREE. So, what better option to save?

                Available for: iOS

                8. Prism

                  Have you recently forgot to pay a bill because life got in the way? Prism automatically tracks your bills and syncs your bank accounts in one place.

                  Here are some of its main features:

                  • View all your account balances in one glance
                  • Bill due dates are automatically pulled and tracked
                  • Receive early reminders for upcoming bills

                  If your budget is on “fleek” but can’t seem to stay on top of your bills, Prism is your go-to app.

                  Available for: iOS, Android, Windows, Amazon

                  9. Mvelopes

                    Remember hearing about people using envelopes to budget their money? Well, Mvelopes is the new envelope system for this generation. Easily create monthly budgets and track your saving goals.

                    Here are some of its main features:

                    • Connect unlimited bank accounts
                    • Real-time budgeting with auto transaction syncing
                    • Low monthly $4 fee or $40 annual

                    Mvelopes can help you crush debt, save more, and help you stop overspending. With its low monthly fee, it’s worth a try.

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                    Available for: iOS and Android

                    10. Wallaby

                      Most people don’t have time to track their credit card’s changing rewards and interest rates. Because of this, you need help reaping the most of your credit card’s rewards. Wallaby is the app that will help you do just that.

                      Here are some of its main features:

                      • Automatic recommendations for the best credit card to use for each transaction
                      • A friendly user interface, displaying credit cards with their corresponding images
                      • Free to use

                      If you’re using the same credit card to make your purchases, you may be leaving money on the table. Give Wallaby a try if you’re ready to maximize your credit card’s rewards.

                      Available for: iOS and Android

                      Take control of your finances and experience financial freedom

                      Picture yourself staying on budget and saving more money than you’d ever imagined.

                      It took hard work and dedication but you’d finally learned how to manage your money. You have to start taking control of your spending and saving habits.

                      You now have a list of reliable apps that can help you build better money habits, what are you waiting for?

                      Featured photo credit: Pexels via pexels.com

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