There comes a time in everybody’s life that they have to start seriously thinking about investing in order to protect their long-term financial future. Coming up with a clever investment strategy, however, is tricky in a world where swings in markets can be extreme and not even the experts can accurately predict when the next financial crisis might happen. Identifying the best investments for the start of this new decade requires studying trends, listening to experienced heads who are in the know and making plans that probability says will bring you profit. Read on for a list of the six best investments you should make in 2020:
1. Invest in the Renewable Energy Sector
The specter of climate change looms large over society and may mean the end of the fossil fuel era. While the price of oil and gas may tumble in the next decade, one industry that is set to thrive is the renewable energy sector. It is likely to be a prudent financial move to research some of the more promising solar, wind and wave energy companies, as they could see their stock prices soar in the not so distant future.
2. Pay Off Any Outstanding Debts
If you have any degree of liquidity, there really is no excuse for not ridding yourself of any unpaid debts that may be tying you down. It makes no sense to continue pay over the odds to lenders on high interest rates. The money will save can then be stashed away in a savings account to reinforce your financial security.
3. Get a Retirement Plan
A great way of dodging the taxman is to take out an individual retirement plan or retirement plan sponsored by your employer. You cannot work forever, and with the average life expectancy continuing to rise, it makes financial sense to make sure you are not caught short in your twilight years.
4. Capitalize on Stock Market Drop-offs
With the unprecedented economic impacts of the coronavirus pandemic having hit the stock market hard, stocks and shares are currently at levels not seen for 30 years. Now could be the time to capitalize on low stock prices and move some of your money into companies that are likely to bounce back after the crisis blows over.
5. Buy a Second Home
Buying property has always been a safe bet. Since the price of physical assets typically rises steadily against wages, property ownership is a great way to insulate yourself from fluctuations in the economy.
6. Invest in Yourself
One of the wisest decisions you can make is to invest in self-improvement. Taking courses to learn something new will improve your career prospects and can result in a promotion as you climb the ladder at your company.
Choosing the best investments for your personal financial situation can be a minefield as you try to navigate what is set to be an increasingly uncertain future. Hopefully, the ideas listed above have given you some direction and will help you maximize the returns on your hard-earned cash.