You Can Make It!: The 5 Smartest Investments to Make in 2019

You Can Make It!: The 5 Smartest Investments to Make in 2019

You’ll never hear a person complain about making too smart of an investment. That’s because a smart investment is a choice that isn’t always clear at the onset.

According to Investopedia, the average investor underperformed the S&P 500 by 6% annually which is just slightly over the rate of inflation. But you can make it happen with wise financial decisions.

Learn from successful investors with this list of the five smartest investments to make in 2019.

1. Employer-Sponsored Retirement Plans

Tax-deferred retirement plans are getting a boost in 2019. Time to max out your 401(k) or 403(b) if you neglected it in past years.

The IRS raised the limit for retirement plan contributions from $18,500 to $19,000 to help you avoid big income tax hits. If you are over the age of 50, you can add an additional $6,000 per year in catch up contributions making your total investment per year $25,000.

This makes the 401(k) a good choice for investing in 2019 because you benefit from lower income taxes while increasing your retirement savings. Depending on your tax bracket, the tax savings alone make this investment worth it.

2. IRA

Contribute to an IRA to take advantage of another boost in plan contribution limits for retirement. The amount raised from $5,500 in 2018 to $6,000 in 2019.

With an average 7 percent return on the market each year, plan to maximize your earnings with a max contribution. The contribution limit for people over 50 is $7,000.

3. Value Stocks

The tech industry had its time to shine. Now it’s time to move more of your money away from growth stocks to value stocks. Value stocks have outperformed growth stocks by wide margins for more than 90 years.

Yes, the stock market had a tough year in 2018, but over the long haul, they outperform other investment types. We aren’t talking about a get rich quick scheme, but a smart money move that will lead to a win in the long term.

Stocks have a value that goes beyond their annual rate of return. Consider using your stocks as leverage to fund other types of investment deals.

4. Corporate Bonds

With corporate bonds, you get access to short term gains that outperform traditional government bonds. Invest in corporate bonds after researching top quality bond options. If the company runs into financial problems and defaults on the bonds, you will lose money.

The major benefit of investing in corporate bonds is their liquidity. This means they can be bought sold at any point adding flexibility to your investment.

5. High Performing Bank Accounts

There is no better investment to make than in your emergency fund. Earn interest on contributions with a high yield money market or savings account.

There is little risk to setting aside money in your own account to protect you from possible job loss or another recession. The more you contribute, the more you are guaranteed to earn no matter how the market performs.

You Can Make It Happen

Investing money doesn’t have to be complex in order to make you money. You can make it happen with self-control and a long term commitment to understanding how markets flow.

This list is intended to show what additional opportunities exist in 2019 not to convince you its time to throw in the towel on current investments. Some gains, as with the stock market, need decades to increase in value.

For more information on making your investments work for your financial goals, contact us today.

Stock Loan Solutions, LLC
6582 South Big Cottonwood Canyon Road, Ste 200
Salt Lake CityUT 84121 USA

The information contained herein is presented solely for the purposes of discussion and under no circumstances should this be considered an offer to buy or a solicitation of an offer to sell any security. Stock Loan Solutions is not a registered securities broker-dealer or an investment adviser with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. Stock Loan Solutions, its managers or affiliates have not been registered and do not plan to be registered under the Investment Advisers Act of 1940 or any similar state or foreign securities laws. Stock Loan Solutions is not registered under the Investment Company Act of 1940 or under any similar state or international securities laws. Stock Loan Solutions does not offer any form of investment (buy or sell) advice, tax counseling, estate planning, or any other securities or financial advice whatsoever. No statements on this website or any verbal or written statement by any representative shall be construed as such advice. We are neither licensed nor qualified to provide investment advice.

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