What to invest your money in this year

Want to make the most of your financial resources this year? Then here are a few things to consider:

Get rid of your debt

Before you do anything else, direct your resources at reducing or removing your debt altogether. However good an investment performs, it’s unlikely to bring you a return that is more than your debts cost you. So, it makes sense to shed your debt before you do anything else.

Haven’t taken out an ISA?

Then jump to it and use up your 20,000 Individual Saving Account allowance (ISA) for the 2017/2018 tax year. Your ISA could be cash, shares or unit trust based up to a value of 20,000; and you won’t be charged tax on your interest.

Property potential

Whether you’re looking to invest in your first home or hope to become a commercial landlord, property has proven a sterling investment over the years. In fact, property has long been considered one of the best long term investments you could make.

Though all investments can go down as well as up in value, property has tended to grow in value over time. Moreover, invest in property, and it’s a tangible physical asset that you own, and it has the potential to provide you with a regular income too.

Remember that the proportion of people living in rented accommodation in the UK is set to rise, so more housing in the private sector will be needed. Plus, commercial properties provide another possibility for a revenue stream.

The promise of shares

Also, consider learning how to buy mtn shares – or shares for whatever company you’ve been looking into. Though they are somewhat volatile and subject to markets conditions, shares remain a favored investment. You could invest in a general fund or research individual shares. If you’re going to do the latter, then heed Warren Buffet’s advice to only invest in those companies you understand and consider their competition to. Also, never invest in a company whose shares you’d want to own for less than ten years – think long term here too. There are also unlisted shares that are traded in an over-the-counter (OTC) market. If you find a site to buy unlisted shares, there is lots of potential for you to make good investments.

Open ended investment companies

Alternatively, invest in an Open Ended Investment Company (OEIC). You’ll buy shares in a company that in turn invests in a variety of different investments, including companies and bonds. Here you’ll be pooling your resources with others to build up the assets of the OEIC, and if the value of their assets rises; then so too will your share, if it falls, then so will your share.

Precious metals perform

Precious metals have long been seen as a robust investment, a hedge against the uncertainties of the stock market. Gold especially is an investment that has shown its ‘metal’ in difficult times, holding its value when other investments are fast losing theirs. Plus precious metals are also a tangible physical asset with many uses and applications throughout industry today. Essential as they are to medicine, dentistry, energy, the automotive, information technology and communications sectors, amongst others. Our daily lives depend on precious metals in many ways, so you may want to dedicate at least a part of your investment portfolio to them. There is a wider range of precious metals to invest in than you might at first think and this year Palladium has been performing particularly well.

Invest in you

However, don’t forget to invest in you too, develop your skills and abilities, so you can increase your earning potential, improve your business or move to a job that will give you a better quality of life.

Financial advice for you

If you want to invest this year, seek independent financial advice. All investments contain an element of risk, so it’s best to seek professional assistance. Never invest in a product or company that you don’t understand. Contact chartered accountants such as Frank Hirth for help with your forward financial planning.