As the year winds down to an end, it may spur your thoughts. What have you done this year? It is not too late to make a strong turn around. We have some top investment opportunities for late 2021 that can end your year with a bang. 2020 was a volatile year for the economy and whilst you may have played it safe so far with your investments, it never hurts to look to diversify your investment portfolio and plan for a financially strong future.
There is never any guarantee with the stock market but it’s a known fact that investing in stocks is about playing with averages and taking a risk. By owning stocks in different companies, you can build on your savings whilst protecting your money from inflation and taxes, capitalising income from your investment. If you are aware of the risks, you can set your own rate and know where to draw the line.
With stock prices rising and falling over time, investors should look to consider a more long-term arrangement for their investment portfolio here. If you can ride out fluctuations in the market you will reap the benefits of selling high as the prices smooth out. Payment in the form of dividends can provide you with additional regular income and enhance your return.
Unsure of where to look for investing?
- Wynnstay PLC
- JD Sports
We have outlined some key advantages of investing in property for you to consider expanding your investment portfolio before the end of 2021.
- Capital Growth: By purchasing property, particularly in a developing location you can see a strong return on investment. Areas with high traffic are likely to return more profit.
- Tangible Asset: Investing in property gives you a tangible asset. This is something you can physically see and touch, giving you the ability to see where your money is and that your investment is solid and stable.
- Additional Income: If you purchase property to rent out you are creating an earning from your investment. Ensure you can profit from this before taking the plunge by subtracting your overheads from your rental charge.
- House Price Growth: Housing prices are thriving in the UK now with buyers finding themselves in bidding wars. Properties are selling for way over the asking price making this a fantastic time to sell. By investing in property, you are securing a solid asset that you can see make a high return on investment if sold in times like these. Housing prices between July 2017 and July 2018 grew 2.7%. Between June 2020 and June 2021 housing prices have grown 13.2%. This is a huge growth, fantastic for property investors looking to sell.
Investing is great way to increase financial security, particularly through your retirement. Depending on how you invest, you can reduce the amount of taxes you owe on the income for each year you invest in, looking at potentially avoiding taxes owed on earnings through investments. Investing produces earnings upon earnings, something unachievable by homing your money in a regular savings account.