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Thinking About Investing? Here’s a Guide
to the Hottest Investments Today

One of the best ways to build wealth is to invest your money into something that has the potential to make more money for you. Investing in something can help you build for retirement or provide you with a secondary source of income right now. Unfortunately, investing also comes with some level of risk, with some investments being riskier than others, so it’s important that you do your research before investing in understanding precisely what you’re getting yourself into. As of 2021, here are three of the simplest and best investments to consider.

#1: Cryptocurrency

These days, it’s almost impossible to go onto any website (social media included) without seeing an ad or news on cryptocurrency. This is a type of currency that’s used to buy goods and services--- but it’s all digital. Not digital in the sense of paying with debit or credit cards, but digital in the sense that it’s electronic only and it’s not backed by the FDIC. Currently, the most popular and also the most volatile cryptocurrency is Bitcoin.

If you’re more into taking risks when it comes to investing your money, then investing in cryptocurrency is the way to go. One thing that makes it so risky is that the value of cryptocurrency is only determined by what people (traders) are willing to pay for it. The price of cryptocurrency (especially Bitcoin) fluctuates a lot, which is why many traders are interested in it. However, it is predicted that cryptocurrency is definitely going to be a part of our future, so it’s important to do thorough research before investing in it.

#2: Stocks and Bonds

Stocks and bonds are some of the most popular things that people tend to invest their money in, and they’ve also been around for decades. Investing in stock can be particularly risky, but it also depends on what kind of stock you choose to invest in. For example, dividend stock funds allow you to make immediate, tangible money while also receiving more on your investment because of long-term market appreciation. This type of stock is a good investment for just about anyone, but especially for first-time investors and those looking to earn an immediate income.

In the same way that there are different types of stocks, there are also different types of bonds. Some good bonds to invest in include government bond funds, short-term corporate bond funds, and municipal bond funds. Government bond funds are mutual funds, and like dividend stock funds, they’re great for first-time investors seeking immediate income. As always, do your research before investing because there are certain bond funds that are not FDIC insured.

#3: Rental Properties

Rental housing, specifically vacation rentals, is a great investment to consider right now. With online services like Airbnb and Vrbo being popular and traveling becoming safe again, you’ll have the potential to earn passive income through vacation rentals. With mortgage rates currently low, now is a good time to buy a small vacation home that you can rent out to guests. Again, it’s important to research so you can determine the best location to purchase a rental property--- preferably a location that sees a lot of tourists, so you’ll know your property has a high chance of being rented.

Getting started is easy--- just look into a vacation rental lender to help get you started. No matter your specialty, it’s wise to talk to someone who has experience in investing in rental properties, whether it’s a vacation rental, regular residential rental properties, and even those who’ve invested in commercial real estate may be of some help to you.

Keep in mind that all investments come with some level of risk, and success isn’t guaranteed for every investment. If it’s your first time investing, choose an investment that you believe (through research and financial analysis) will be the best for you and provide you with the greatest return on your investment.

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