Top 8 Long-Term Investments That You Can Consider for 2020

In times of unprecedented economic strain, as is commonplace during this global pandemic, those with an overabundance of wealth may find it the best time to invest and build their financial portfolio. Whether you are interested in high or low-risk investments, there is a brilliant return that can be made, whether modest or huge. Some may decide to do both, and by doing so are able to grow their portfolio and investment over time, and thus achieve financial independence. Investing can alternate between being very fast-paced and being very slow-paced. With a little ingenuity and forethought, you can achieve financial independence and become a multi-millionaire.

Real Estate Investment

Real estate has long been the first choice of many investors. It can be difficult to find a way into real estate as it is oft-oversaturated and highly expensive, but thankfully the professionals of have been able to offer expert tips toward potential first-time buyers. Once upon a time, you could only get into the real estate trade by buying a house outright, but new schemes have set forth so you can divide a house between strangers and each own a 25% share, which you can make a profit on over time or through renovations.

High-Yield Savings Accounts

Similar to an ordinary savings account, high-yield online savings accounts are great ways to grow a profit for your cash. There are many risks associated with these accounts, but thankfully they are FDIC-insured so you will not lose your deposit if anything goes wrong. You do, however, run a significant risk of earning less on your investment courtesy of inflation, every investor’s nightmare.

Deposit Certification

Deposit certificates, also known as DCs, are bank-issued and carry a higher interest rate than an ordinary savings account. These are also insured by the FDIC, so the risk of loss of deposit is non-existent. However, you cannot withdraw your money early without risking a penalty. Once your account reaches maturity you can earn up to 1.8 APY.

A Money Market Account

Money market accounts, also FDIC-insured, are interest deposit accounts, similar to the two aforementioned. Money market accounts earn a significantly higher amount of interest than the previously mentioned because they require a higher entry payment, and are relatively liquid, which earns a higher yield. A money market account can be a great way to store your emergency savings.

A money market account can be a great way for first-time investors to build a nest egg and set up their emergency savings fund. However, all is not perfect as it may seem, as inflation carries a huge threat. If inflation rates surpass the interest rate earned on your account, your purchasing could deplete significantly.

Treasury Bills

Treasury bills are a U.S. government-funded investment scheme for ordinary people to make huge interest on their initial investment. They are sold at a discount and have a year before they reach maturity. If you buy one for $2000, you will typically only pay $1960, thus earning $40 on your initial purchase. However, it may seem small, but much larger sums invested can give you a huge amount of return. But the sum invested would have to be significant for this. They are often issued for two-year terms, three, five, six, and ten.

Government Bond Funds

Government bond funds are another government scheme, as is in the name. The funds when invested invest in debt securities like the aforementioned. These funds are brilliant for first time low-risk investors. The risks carried with this are considered to be the least out of all investment schemes, but the scheme securities are supported by the U.S. government. The fund is still subject to inflation and fluctuation, thus lowering one’s purchasing power.

Corporate Bond Funds

Small-time investors can make a significant amount of interest and great exposure by buying shares of short-term corporate bonds. These typically have a maturity of five years, which makes them less likely to suffer from fluctuation and inflation.

S&P Index 500

S&P index 500 funds can accrue great amounts of interest and bring in higher returns than typical investment schemes. The index returned is around 11% every year. These funds can be bought very cheaply, and all year round, and often come without a maturity.

Whichever way you decide to invest you should always invest in FDIP-insured companies, as there are many sharks out there masquerading as a great way to invest but are simply no more than scams and con artists. Be sure to do your thorough research before parting with your money.

If you suspect any fraudulent activity from any investment firms holding your money it is important you contact the police or the federal government in order to have the matter addressed and your money returned.