Each year it’s a good idea to assess your current investment portfolio. With a new year, comes new opportunities for investment that may bring a better return than your existing investments. If you’ve noticed that you need to diversify your investment portfolio in 2020, here are a few ways to do so effectively.
Certificates of Deposit
Known as CDs for short, this type of investment is considered one of the safest on the market. These certificates are issued by various banks for a set period of time and a set interest rate. After the investment period which is usually five or ten years, you can get your principal amount back with the earned interest rate specified at the start of the loan. These provide more return than a typical savings account.
Invest in Gold
Gold is one of the commodities that are always in demand. It’s held strong year after year and has proven to be a great investment. You can take a look at the gold price forecast if you would like to see what sort of return you can gain on your investment. When it comes to investing in gold, you can opt to do it in a couple of different ways. You can purchase shares in gold stock, you can physically buy gold and store it, or you can purchase gold and have it stored in a safe investment location.
Money Market Accounts
If you’re looking for a fairly easy to manage investment account, look no further than a money market account. This type of account is similar to a checking account, however, it has more requirements. You typically have to keep a minimum balance in the checking account for it to be active. You can deposit or withdraw money at any point in time you wish. You’ll earn a higher rate of return on the money that is in your account than you would with a typical savings account. These money market accounts are available at various banks both on and offline.
Also referred to as treasury bills and T-bills, these are a very safe form of investment for the average individual. Basically, the Federal Government offers you a bill or bond at a set price that is less than the face value. So, this maybe $980 for a T-bill that is worth $1,000. When the bond matures, usually in a year or less, the Federal Government will pay you the face value of the bond. In this case, that value would be $1,000. So, you would essentially make a $20 return on your investment.
As you can see, there are many ways that you can diversify your portfolio. It really comes down to deciding on the amount of risk that you want to take and how long you want to invest your money. There are various options depending on the preferences that you can choose from to keep diversity in your investment portfolio.