The Starter Pack for Investments in 2024 and Beyond
Consultants and financial advisers often repeat that keeping all eggs in one basket is bad. In other words, a diversity of investments is what makes the future less uncertain and more comfortable.
Rarer do they list all the ways in which ordinary working-class and middle-class people can invest their money.
This article explains what the future of investing holds exactly for such guys.
The New Cryptocurrency Frontier
Ever since its inception in 2010, Bitcoin has been a subject of controversy. As the first cryptocurrency, it has hacked the way for a completely different approach to money, payments, and investments.
As the number of cryptocurrencies has grown – Ethereum, Solana, Doge, Litecoin, etc. – people now have many payment methods at their disposal. Logically, various businesses have started accepting crypto in the last few years.
Now people can pay for items they buy online using this payment method. What’s more, many gaming platforms have followed suit, from Steam and Microsoft Store to iGaming websites on a top-rated crypto casino list. Still, if you’re planning to use crypto in any of those ways, make sure to do your homework to ensure you are paying and playing safely. It will help you understand where you need to register, where not, and how to use these currencies for your greatest benefit.
Cryptocurrencies are also a form of protection against inflation and measures brought by commercial and national banks. As such, they’re highly likely to attract new investors, both big and small, especially when we see the growth of Bitcoin in the last 14 years.
Real Estate Crowdfunding
You know those relaxing TV shows set in suburbia, where families have huge homes and backyards? Once an important part of the American Dream, such images are beginning to wane, both metaphorically and practically. Millennials and Gen Zers are struggling to buy homes both in the US and other parts of the world.
Even if you’ve been saving, you’re most likely to have collected enough funds barely for a down payment in the last decade.
However, there are alternatives on the horizon. One of them is real estate crowdfunding. Investors launch a real estate crowdfunding campaign in which they invite both businesspeople and ordinary house seekers to invest their assets.
Once the real estate in question has been built, the small and big investors alike possess a certain ownership share. Assuming that the property price will keep rising, those small investors will be well-off in the time ahead, as their investment will bring profits.
In the meantime, they can rent a property in a less expensive area, until their share reaches the price that would allow them to buy their own place to live.
Stock Market Indexes
This is old news for US citizens, but people in some emerging economies might now be aware they can invest in US-based stock market indexes. The reason why we’re underlining the ones based or registered in the US is that the majority of the biggest tech companies in the world still come from this country.
Let’s take, for instance, the S&P 500 stock market index. It’s the average value of the 500 most valuable American companies in real-time. Looking at the history of this stock market index since its launch in 1957, you’ll see that the average annual return has been around 10% throughout this period. In the following 30, 40, or 50 years, it’s likely to bring decent incremental profits to investors.
But what if you make your investment during the bear market and don’t reap the fruits of such a financial decision? There’s one pro tip: investing in stock market indexes over a longer interval typically justifies the decision. Hence, if you decide to put $200 per month in such a fund for 20+ years, you’re highly likely to enjoy the benefits of such a move. After all, Warren Buffet has been around for a while, with his ups and downs, and he often recommends the S&P 500 fund as a long-term option to ordinary investors.
Tech Company Shares
This is the age of technology, and it’s logical that tech companies are the fastest-growing ones out there.
So, it makes sense to invest in such enterprises to diversify your portfolio, right? Well, generally the answer is ‘yes’, but there are significant differences between various aspects of the tech market.
For instance, if you opt for software outsourcing companies or new startups, it’s hard to tell where things will go. Potentially, a startup could grow faster in the initial period but then you don’t know whether it will keep developing, become a unicorn, or simply die down.
On the other hand, investing in top-tier endeavors – especially the ones at the forefront of AI development – will be better for your financial yields over the years. While the current profits could be lower than those of a startup, it’s safer over a longer time.
Finally, some of the major US tech companies have surpassed the worth of $1,000 per share in 2024. This shows that even large businesses can bring a high return on investment if they jump on the bandwagon of technical innovations.
Conclusion
Based on the above and observed from this point in time, the future will bring numerous possibilities for diverse investments. With a certain level of financial knowledge, a diversified investment portfolio, and a pinch of luck, every investor can ensure a steady return in the time ahead.