2022 is here, and it’s time to get down to the work of making some real money. The recession isn’t behind us quite yet, but the signs are all pointing in the right direction, and investors, small business owners and regular consumers are spending with a bit less anxiety than at this time last year. Now that the fiscal cliff has been (narrowly) averted, savvy business owners are looking at investment options. It’s always a great idea to have a diverse portfolio, and once you have a solid emergency fund in place and enough liquid assets to manage the company’s monthly operating expenses it’s time to look at ways of making that extra money work for you. The stock market is a scary place for the uninitiated, but those in the know understand that money can be made regardless of the state of the economy. So here are some of the best investment options for your business in 2022.
Although they were looked at with genuine fear a couple of years ago, investing in banks is now a solid, responsible option. Certificates of Deposit aren’t the most flashy investment tool, but they are backed by the FDIC so you know your money won’t go anywhere. The interest rates are low but consistent, and you’ll have peace of mind knowing it won’t ever be affected by future market fluctuations.
Another great option for your long term future is a hard asset. That’s precious metals such as gold and platinum, or other naturally occurring resources. The great thing about these hard assets is that their value isn’t based against paper money, but a fluctuating going rate of availability. It may adjust slightly, but it probably won’t go down much at all. And it will always have an inherent value, regardless of what happens to any country’s economy. Just remember that the true strength of this investment is if you can hold on to the hard assets for quite a long time.
The stock market may be the scariest investment tool for most people, but it is still a viable investment option. The problem with the stock market is when people bet on emotion and move too quickly. You cannot buy and sell based on the impact of news stories. That’s not how the big boys do it, and it adds to the shaky nature of the market. Any stock you buy you should expect to hold on to for at least five years, or better yet a full ten years or more. Maintain a diverse portfolio with stocks as only one aspect, and you should be fine.
Real estate took quite the PR hit over the past few years, as many homeowners saw the value of their property plummet and mortgage defaults became an epidemic. Although property values have yet to fully recover, and truthfully may never again reach the heights enjoyed in the past two decades, real estate remains a solid investment. This is especially true in the business world, because as your business builds at a location you add value to the property. Real estate obviously requires a lot of money, but you also receive an incredible amount of tax incentives when you have a mortgage. And it will always treat you better than something like penny stock picks, which will keep you up with heartburn all night.