Looking for the best investment options for women? If you're a proud, independent woman, you'll be thinking hard about how to prudently invest for the long term. But figuring out the most lucrative long-term investment options for women can be hard. Here, we'll discuss the top five best investment options for women.
Table of contents:
- government bonds
- cash savings
- valuable items
Property investment is always a smart move if it's one you can take. But property investment is not for the faint of heart. Managing tenancy yourself if you need to rent out the property can be very difficult, so you may want to budget for agency fees. Property is one of the more expensive ways to invest, and the 2008 financial crisis showed it wasn't as stable a market as many presumed. Nonetheless, property should be your first port of call for long-term investment growth and is one of the best investment options for women.
Shares are a riskier investment than property, but safer long-term equity options are available. Consider investing in a mutual fund, where experts manage your investment for you. A women investment fund that invests only in female entrepreneurs is even an option if you want to achieve something radical with your capital.
Rather than trying to make a bomb on highly volatile stocks, long-term investment requires having a diverse portfolio of slowly growing safe bets. Aim to get a dividend reinvestment plan (DRIP) to make the most of the compounded growth. If you're savvy, aim to get a mixture of very safe and risky stocks to maximize opportunities for growth while minimizing opportunities for loss. And use a free income tax calculator to make sure the government doesn't chase you over your stock earnings.
3 Government Bonds
One useful element of a diverse portfolio can be government bonds. This kind of fixed income asset will not carry as much risk as corporate equity and will provide you with a steady income in the long term. Essentially, you let the government borrow your money, and they pay it back with interest.
You can expect to get about a 6% return per year on this kind of investment. Having this kind of stable asset will help hedge you against potential losses in your more ambitious investments.
4 Cash Savings
Whilst hiding your cash under a mattress is not the best long-term strategy, even if inflation rates are low, there are ways that cash savings can be employed as a smart investment. With the right savings account, you can achieve a 5% return on your investment per year.
Cash savings give the lowest return of any kind of investment, but they are also the most liquid, which makes them useful for emergency situations when you don't want too much of your capital locked up in shares and so forth.
5 Valuable Items
What if the currency collapses, the banks go under, and both the property and the stock market crash? The most robust hedge against the winds of economic turmoil is an investment in valuable commodity assets.
Precious metals (gold, silver, platinum) are the most popular investments used to hedge against the possibility of a general economic downturn, as they tend to hold good value and don't require any special expertise to deal in. If you want to be a bit more ambitious, try acquiring some fine art, antiques or jewelry.
There are plenty of ways for women to make smart investments for the future. Make sure also to use a free income tax calculator to keep the government off your back with regard to their share of your earnings.
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