Studies have found that overall women invest less than men, however, women also tend to make smart investments when they do. In fact, one study analyzed 8 million client accounts to find that women investors outperformed men by 0.4%.
Looking to diversify your portfolio while still making smart and sound investments? We have put together our top 8 picks for ideal investment options to look into.
Read on to learn more about where to place your money!
The Top Picks for Smart Investments
1. International Stocks
When it comes to stocks, the U.S market takes up 35% of the global market, which is why international stocks may be the diversifying option you’ve been searching for.
Global stocks allow investors to experience a variety of economic experiences while still owning funds with lower portfolio volatility and higher adjustment returns.
2. Real Estate
Real estate is always a recommended addition to stock portfolios, and thanks to real estate investment trusts, even those who are looking for smaller sized investments can get in on the action. Real Estate Investment Trusts, also known as REIT, are designed to give investors regular streams of income.
Another benefit of real estate investment trusts is that they bring vast diversification to one’s stock portfolio along with the potential for increased capital over time.
3. Robo-Advisor Investment Manager
If you’re looking to find the right investment accounts for your own risk comfort and financial goals, a robo-advisor account may be the right choice for you. Robo-advisor accounts are designed to manage your investments in a way that you’re most comfortable with.
Many major named shops include robo-advisor accounts, like SigFig and Betterment, Personal Capital, and Wealthfront. With the help of robo-companies, you can find diverse investment opportunities that are perfect for your portfolio.
You can always make revisions and settings if you find your robo-advisor isn’t hitting it dead on the first time. But the more feedback you provide, the better the results will be.
4. Municipal Bond Funds
If you find yourself within a higher tax bracket, a municipal bond fund is a smart choice for your portfolio.
These bonds are usually held tax-free interest payments. It’s also important to remember that if the municipal bond funds are issued by your state, there will be no state taxes placed on them.
If you’re not sure if this is the right investment for you, then we suggest speaking with your financial advisor and looking into the fund’s tax equivalent yield. The risk level isn’t for everyone, but it could lead to some great returns down the line.
5. 529 College Savings Plan
If you have a child (or children) it’s likely that the price of college has kept you awake more than once. And it should, as college tuition has never been more expensive than it is today.
Fortunately, there’s room for your child’s education in your stock portfolio.
529 College Save Plans are designed to help you save for your child or family members tuition without worrying about the tax. Since the program is state-sponsored, the savings are tax-advantaged. There are also a wide variety of stock and bond options to choose from for the account.
This is an ideal way to expand your portfolio and restore peace of mind that your child’s education will be taken care of.
6. Global Bond Funds
Having foreign investments in your portfolio is another unique way to diversify it, and investing in foreign date is a great place to start. It’s important to remember, however, that global bond funds do come with their share of risk.
Factors like currency risk and decreased volatility are important to consider when choosing Global Bond Funds. That said, if you’re comfortable with the risk, it may be the investment you’re looking for.
7. Target-Date Funds
You may have heard of Target-Date Funds before under the name “lifecycle funds”. That’s because these funds are intended for investors searching for a low-maintenance investment that serves as a retirement fund option.
The way to invest in the fund is simple: you just choose the year you plan to retire as your date to withdraw.
When looking for target-date funds, be aware of the fees that come with them. You’ll want an option that has a feel below 1 percent.
8. Individual Retirement Accounts
Investing in your future past employment is always a smart choice, and there’s no better way to do so than investing in Individual Retirement Accounts (IRA). Your Individual Retirement Account is intended to assist you in saving for retirement while reducing taxes. Since the money in your Individual Retirement Account comes from your taxable income, this is less money to pay come tax season.
While your Individual Retirement Account won’t provide you with a tax benefit right away, you are allowed to make withdrawals once you reach the age of 59.5.
This can help ensure that your retirement savings isn’t used on an “emergency situation” and remains right where you left it, plus interest.
Bonus: Commodities
If you’re looking to diversify your portfolio, investing in commodities is a unique way to do so. Investors are now turning to investments in commodities like orange juice, gas, oil, coffee, copper, silver, and, of course, gold.
While they do have the potential to bring diversity it’s not a recommended investment for beginners. If you do choose to invest in commodities you can start with two of the largest commodity funds: PowerShares DB Commodity Index Tracking Fund (DBC) and iShares S&P Commodity Index Tracking Fund (DBC)
Getting Smart on Every Area
Making smart investments isn’t just about money, but where you invest your time as well. Whether you’re taking the right steps to reduce your stress or starting your journey to get in shape, a well-balanced life is just as important as a balanced portfolio.
That’s why we’re here. Spend some time diving into our articles to learn how to get the most out of life, love, health, and business. Because at Estilo Tendances you can have it all!
