Investment Opportunities in 2011
With the economy slowly scrabbling back to its feet, investment opportunities might be the last thing on your mind. Yet, the saying - albeit cliché - goes, "buy low, sell high," and a depressed market can be an ideal time to invest. Before deciding which investment opportunities are best for you, assess these few items to determine if investing in 2011 is right for you at all.
• Talk with a professional about inflation, taxes, advisory fees and brokerage fees. Many people don't understand what it costs to invest money, and if inflation is too great or the mutual fund you're considering charges too high of an advisory fee, investing may be too expensive.
• Decide if you're ready to diversify. If you already own 20 stocks and are considering buying 20 more, that's not diversifying. You need to look into stocks, bonds, precious metals and other forms of investment options to truly ensure your assets are mixed.
• Consider multiple advisers. It's not always in your best interest to follow the advice of only one financial management company.
• Life changes. If you plan on encountering substantial life changes in the near future - marriage, having a child, buying a home - talk with your financial planner about the issues these could spawn in your portfolio. You may need to consider reallocating some of your investment funds.
There are, however, several smart investment opportunities in 2011.
It may sound simple, but it's crucial to invest in things that you know aren't going anywhere. The going green trend can hardly be called a trend anymore. It's a growing, thriving industry for investment - put your money into solar energy and energy-smart transportation.
When thinking about investment opportunities in 2011, think long term. If you can afford to buy a property and rent it, then do so while home prices and interests rates remain low. Eventually, the housing market will fully rebound, and you could stand to make substantial profits by re-selling the property at an improve market price.
The Internet is definitely not going anywhere, nor are our mobile electronic devices. This doesn't mean that you should throw your money behind every new dot com or trendy, touch-screen contraption. Sink your funds into reliable companies such as Google, Apple and large cellular service providers.
Healthcare is here to stay, and pharmaceutical companies will continue to research, developing new drugs at an astounding rate. If you want advice on what particular company to back, speak with a financial adviser about which organizations are growing and showing profits.
If you care to invest within the financial sector but are scared to back individual banks - we've witnessed a lot of them flip-flop and change hands within the recent past - go with Visa or Wells Fargo.
Invest in a secure retirement account. There are several ways to put back money for retirement, but be sure you're investing in an account with tax advantages - one that will save you from paying large tax sums now and down the line.
Then, there are always stocks.
Investing in the stock market, especially during a tumultuous economy, can be risky. If you're set on stock investments for 2011, speak with a financial management company.
About the Author
People earn their livings by managing the financial portfolios of others, so it's safe to assume that they will be able to assess the stock market; provide you with the guidance you need to invest soundly and smartly; and have the experience necessary to keep you informed about the conditions of your stock investments. For more info go to http://www.wickhamservices.com
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