With bond yields now higher and cash earning decently, investors can diversify portfolios according to their risk tolerances, without having to be over-concentrated in the equity markets. While there’s always something new and shiny to attract investors’ attention, the age-old wisdom of a diversified portfolio stands true, year in and year out. However, anywhere you can earn some extra dollars and put your money to work is a trend worth opting into. This is not an actual "investment" per se-as your money is not invested in stocks or bonds, and deposits are insured up to a certain amount by FDIC. Leverage high-yield savings accounts for money that you might need in the short-term, but want to boost. Take Advantage Of High-Yield Savings Accounts Monique Johnson, Beneficial State Bank 15. ![]() ![]() Furthermore, sustainable funds yield traditional returns with less risk, combining prudence and ethics. Over 70% of the earth is covered by oceans, much of which is unexplored and key to future climate and food solutions. Green or blue economy investing fuels eco-friendly innovation for long-term growth. Make Green or Blue Economy InvestmentsĪmid escalating climate risks, consumers should consider green or blue economy investments this year. Geanette Rodriguez-Ojeda, GRO Accounting and Tax 14. Always consult with a financial advisor for personalized guidance. Investors who prioritize ESG investing (Environmental, Social and Governance) align their portfolios with their values and contribute to positive social and environmental outcomes while still aiming for financial returns. In the upcoming year, consumers should focus on ESG investing and continuous financial education. Focus On ESG Investments And Financial Literacy Cynthia Dalagelis, Amalgamated Bank 13. My best recommendation is to make informed predictions in areas that you feel the economy will grow, areas such as renewable energy and clean technologies: With a growing emphasis on sustainability and climate change, investments in renewable energy sources and clean technologies are expected to continue to grow. Real estate assets have the potential to offer a reliable source of income throughout one's retirement years regardless of the markets. Incorporate Real Estate Into PortfolioĬonsumers approaching retirement in 2024 may want to explore alternative investments, with a particular focus on incorporating real estate into their retirement portfolio. Thomas Hartmann, Hartmann Coaching GmbH 11. AI must first assert itself, especially when it comes to asset management for private individuals. It is better to wait and see and not jump on every new trend straight away. Wait To See Artificial Intelligence ImpactĪI will increasingly determine investments. Gianluca Sidoti, The Wealth Company International FZCO 10. While specific investment trends can vary based on economic conditions, geopolitical events and other factors, here are some general investment trends that consumers may consider in the coming year: sustainable and ESG investments, technology and innovation, remote work and digital transformation, healthcare and biotech, infrastructure investments and real estate. Navigate Digital And Infrastructural Flux We encourage a balanced, diversified portfolio and cash reserves to combat unexpected events. As we march into an election year where fiscal policy shifts are probable, we're focused on tax strategy. Managing variable rate debt is at the forefront of our focus. Navigating the aftermath of rate hikes, we're closely monitoring their latent effects on real estate. ![]() Interesting data from Bank of America shows that 75% of investors aged 21 to 42 don't think it is possible to get above-average returns by investing just in equities and bonds, with 80% of this age group opting for alternative investments. Understand the role that alternative assets play in a diversified portfolio and access to alternative asset investing. Consolidation platforms that allow you to shop around savings (whether notice accounts, instant access or fixed term deposits) are worth exploring as well as checking whether your banks have "existing customer" special offers. Interest is back! Savings accounts have been an afterthought in the days of near-zero interest rates, but now is a good time to make sure cash is working as hard as it can. ![]() Ronald Gelok, Ronald Gelok & Associatesįorbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Consumers who are closer to or in retirement should educate themselves on today's ways to reduce risk other than just increasing an allocation to bond funds since bonds tend to not do well in a rising interest rate environment. Consumers should be mindful that historically, eight to nine months after periods of rapid interest rate hikes, it is not uncommon to hit a recession.
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