With inflation surging and uncertainty growing, it’s natural if you have questions and concerns about where to put your money. While there are many options available to you, some are better than others. Here are five ideas to consider in the days, weeks, and months to come.
Should you save all your money as cash? Of course not. While there are benefits of stocking away money in a high-yield savings account, you don’t want to marry yourself to this idea and this idea only. With that being said, cash is one of the safest ways to invest your money.
Individual stocks have the potential to appreciate over time. And when that happens, you’re positioned to take advantage. As inflation surges, you’re likely to find that many stocks are losing value or stagnating. This is a great time to buy in at a lower price, knowing that you may be able to benefit big time in the end.
3. Short-term bonds
A bond mutual fund is a prime example of a short-term bond. Here’s how it’s defined by Zacks:
A short-term government bond fund is a mutual fund that’s limited, by its investment objectives and fund bylaws, to investing primarily in short-term obligations of the federal government or its agencies. Depending on the fund’s definition, short-term can be up to five years. Short-term bond funds, like all mutual funds, are pooled investments. When you invest in a short-term bond fund you gain ownership of a portion of each investment held by the fund, and you participate in any of the fund’s gains or losses.
Even if you don’t have a thorough understanding of short-term bonds, consider what these can do for you as inflation surges. You don’t want to miss out on a good opportunity to protect yourself.
4. Real estate
There’s no shortage of ways to invest in real estate, ranging from REITs to rental properties to house flipping. Real estate generally performs well during periods of rising inflation, so look into the best way to get involved.
Precious metals, led by gold, are among the safest investments when inflation picks up steam. With the help of online services, it’s faster and more efficient than ever to invest in gold and other metals.
It’s time to answer these questions
What do you think of these options? Will you take advantage of these as inflation continues to surge? What other ideas would you add to the list?