Invest Wisely: Best Bets To Sell Now

There are many options for good investments to sell right now, depending on your risk tolerance, time horizon, and financial situation. Here are some ideas to get you started:

- High-yield savings accounts: These accounts offer higher interest rates than traditional bank savings accounts, making them a good option for those seeking short-term savings or easy access to their money.

- Certificates of Deposit (CDs): CDs are a low-risk investment option that offers a fixed interest rate for a defined period. They are ideal for those who want to invest money they know they will need at a fixed date in the future.

- Stocks: Investing in stocks is a great way to build wealth over time. U.S. stocks have consistently outperformed other investment types over the past four decades, offering average annual returns of 9% to 10%.

- Exchange-Traded Funds (ETFs): ETFs are similar to mutual funds but trade on major stock exchanges, offering more flexibility. They are a good option for those looking to invest in a diverse range of stocks without having to select individual companies.

- Mutual Funds: Mutual funds pool investors' money to purchase a portfolio of stocks or other investments. They are ideal for those seeking long-term wealth growth without the time or knowledge to select individual stocks.

- Bonds: Bonds can provide a relatively safe and stable form of fixed income. Lower-risk options include government or municipal bonds, while corporate bonds offer higher yields but come with greater risk.

- Real Estate: Investing in real estate can be a wonderful way to build wealth, and it is often viewed as a safer, more stable investment than stocks. Options include purchasing rental properties or investing in real estate investment trusts (REITs).

- Cryptocurrencies: Cryptocurrencies like Bitcoin and Ethereum are a relatively new form of investment. They can be a good addition to a diversified portfolio for those with knowledge of the market.

High-yield savings accounts

• UFB Direct: 5.25% APY. UFB Direct is an online bank and a division of Axos Bank. It offers high-yield savings accounts, money market accounts, and mortgages. There is no minimum deposit requirement and zero monthly fees. It also stands out for its massive ATM network of over 91,000 locations and its highly-rated mobile app.
• Credit Karma Money Save: 5.10% APY. Credit Karma is a financial technology company that offers personal finance tools, calculators, credit monitoring services, and banking products such as checking and savings accounts. There is no minimum deposit requirement or monthly maintenance fee for this account.
• Varo: 5.00% APY. Varo is an online-only bank offering products such as bank accounts and a credit card. To earn the highest APY, you'll need to receive qualifying direct deposits of $1,000 or more in your account or have a positive balance on both your Varo bank and savings account.
• My Banking Direct: 5.55% APY. My Banking Direct is an online-only bank and a division of Flagstar, one of the largest regional banks in the Midwest and California. There is no monthly fee, and you only need $1 to start earning the APY. Mobile banking, automatic deposits, and unlimited transactions make this account appealing for short- or long-term savings goals.
• Cloudbank 24/7: 5.22% APY. Cloudbank 24/7 is a digital bank that is backed by Third Coast Bank SSB, a community bank in Texas. The account is offered through Raisin, a digital marketplace that allows customers to compare accounts easily before applying.

Certificates of deposit (CDs)

CDs generally pay higher interest rates than regular savings accounts and money market accounts, but there are some important trade-offs to consider. Firstly, CDs usually require a higher minimum deposit than savings accounts. Secondly, CDs have less flexibility when it comes to accessing your money. Withdrawing funds before the maturity date (the end of the term) will result in a penalty fee. Therefore, CDs are best suited for money that you know you won't need until a specific date in the future.

CDs can be purchased directly from banks, credit unions, and brokerage firms. When shopping for a CD, it's important to compare different offers by looking at the term, the interest rate, and the penalty for early withdrawal. You can find the best CD rates at online banks and credit unions.

CDs are a good option if you want to earn a higher interest rate on your savings without taking on the risks associated with investing in the stock market. They are also a good choice if you are saving for a specific financial goal, such as a down payment on a house or a car, or if you want to build an emergency fund.

While CDs offer a safe and predictable return on your investment, there are some potential downsides to consider. The fixed interest rate could cost you if interest rates rise during the term of your CD. Additionally, inflation can eat away at the value of your money over time, reducing your real returns. Therefore, it's important to consider your financial goals and risk tolerance before investing in CDs.

Dividend stock funds

When choosing a dividend fund, it is important to assess your investment goals, risk tolerance, and financial situation. You should consider whether you are seeking regular income, capital growth, or a combination of both. It is also crucial to look for funds with broad diversification and low fees, as these traits are among the most important characteristics of top-performing dividend funds.

Overall, dividend stock funds can be a great investment option, especially for those seeking regular income and a more stable and consistent source of cash flow.

Value stock funds

Research has shown that value stocks historically offer greater upside potential over the long term with less volatility than growth stocks. Vanguard, the largest mutual fund company in the world, offers a wide selection of value funds, including the Vanguard Value Index Fund Admiral Shares (VVIAX), the Vanguard Selected Value Fund (VASVX), and the Vanguard Small-Cap Value Index Fund Admiral Shares (VSIAX). These funds provide exposure to companies across different market capitalizations, from small-cap to large-cap stocks.

It's important to note that value stock funds are not insured by the government, and they carry the same risks as investing in individual stocks. Stocks that fund managers deem undervalued might remain unrecognized by the broader market, leading to stagnant or declining fund performance. Additionally, value stocks can be sensitive to economic cycles and interest rate changes.

Rental housing

Selecting the Right Property

The location of your rental property is crucial. Look for areas with low property taxes, good school districts, walkable amenities such as restaurants and parks, low crime rates, easy access to public transportation, and a growing job market. These factors signal a larger pool of potential renters. Additionally, consider the neighbourhood's class, vacancy rates, and any ongoing or planned redevelopment projects.

Financing Your Rental Property

Obtaining a loan for a rental property is similar to getting a primary residence mortgage, but there are key differences. Lenders typically charge higher interest rates for rental properties due to a higher default rate. They also have stricter underwriting standards, often requiring a higher credit score, a larger down payment, and a lower debt-to-income ratio. It's important to compare interest rates and shop around for the best options.

Managing Your Rental Property

You can choose to manage the property yourself or hire a property manager. Managing it yourself requires time and effort to handle maintenance, repairs, tenant screening, and rent collection. On the other hand, hiring a property manager can provide a wide range of services but will typically cost between 8% and 12% of the collected rents.

Knowing the Laws and Regulations

It is essential to familiarise yourself with the landlord-tenant laws in your state and locale. Both tenants and landlords have rights and obligations regarding security deposits, lease requirements, eviction rules, and fair housing laws. Understanding these laws will help you navigate any legal issues that may arise.

Insuring Your Rental Property

Consider purchasing landlord insurance, which covers property damage, lost rental income, and liability protection in case of injuries on the property. This can provide additional protection beyond your standard homeowners insurance.

Calculating Your Return on Investment (ROI)

To determine the profitability of your rental property, calculate your ROI using the formula: ROI = (Annual Rental Income - Annual Operating Costs) ÷ Mortgage Value. Factor in all expenses, including maintenance, repairs, insurance, property taxes, and homeowners association fees.

In summary, investing in rental housing can be a lucrative opportunity, but it requires careful consideration of the financial, legal, and management aspects involved. By selecting the right property, securing appropriate financing, understanding the laws, insuring your investment, and managing it effectively, you can set yourself up for success in the rental housing market.

Frequently asked questions