You may be searching for the best investment options for 2020 and have heard about MIC investments. Foremost, you should be prudent with your choice of investment options. It would be in your best interest to take precautions with the word ‘best.’ You should rest assured that a one-size-fits-all investment strategy may not be suitable for all. What has been deemed useful for one may not be suitable for another.
If any investment is best for you and provides a lifetime of smooth financial sailing, it may not be suitable for the other person. It would be pertinent to mention here that the best investment strategy should be a well-researched one. You should not invest actual money without proper research.
Investing would entail committing money to make money along with achieving your financial goals. Politically, it has never been a more divided world. When it comes to investing, all would love to make money from investing, but do not like losing it. You would have the best options made available and the strategies introduced here to help you lose a considerable part of the investment. Before, you look for the best investment in Canada options; ask yourself two essential questions:
1. What should be your investing goal?
Your mode of investment would depend on what you look forward to investing in. You may invest money for a down payment on the house you look forward to purchasing in the future. You may be willing to invest money in helping your child with their upcoming university tuition. You may look forward to investing money for your retirement. The time horizons would be the big difference between the aforementioned three investment goals. Your investment decisions would be relatively different, based on when you require money.
2. What should be your investment risk tolerance?
Despite when you look forward to accessing your investment, you might have a different risk tolerance compared to other investors. The risk tolerance would determine the investment you could afford to lose. In the event your investment did not turn out the way you thought it to come, you would have higher risk tolerance. On the other hand, your risk tolerance would be relatively lower when you do not have money to invest and may have to file for personal bankruptcy.
A proper assessment of your answers to the questions above would determine how you should invest. People having a shorted investment horizon along with low-risk tolerance would probably invest prudently or rather tart to save money. They should invest conservatively and have relatively lower investment returns. On the other hand, people investing money for a significant length of time could afford to make risky investments. It would be pertinent to mention here that risky investments would ensure higher returns.
It would be in your best interest to speak with your financial professional or go through risk surveys offered by several investment providers before investing your hard-earned money. Find below a few essential investment options for the people in Canada.
A Look at the Best Investment Options
You could purchase small pieces of a public company in your region. You should rest assured that stocks have a volatile nature. It implies that you have an opportunity to make loads of money and simultaneously lose a lot as well. Almost all people around you would know someone having adequate knowledge about where to invest. They may have made a significant amount with their investment options. Therefore, when you look forward to investing in stocks, you cannot underestimate the importance of diversification. It implies that you should be prudent while investing in a large group of stocks representing several multiple economic sectors and the economies of various countries that would cushion your investment downside.
The most common mode to invest in real estate would be to purchase a house or apartment. Based on where you reside, you may have a relatively higher risk barrier due to expensive property. It would not be wrong to suggest that for generations, home ownerships have been forced into a savings plan for undisciplined investors. Without a monthly mortgage payment, several people may not have saved anything at all. It would be relatively hard to put a price tag on the home where you intend to raise a family. However, real estate investment has increasingly become a more speculative field for most investors. You should rest assured that businesses with huge risks would ruin imprudent investors. Real estate investments are not significantly volatile when compared to stock investments. Moreover, the benefits of investing in real estate would not match the equities.
If you were avoiding investment in real estate to deal with noisy tenants or fixing leaky toilets, your best bet would be to invest in real estate investment trusts, companies selling shares in different real estate investments or REITs. With stock holdings being important as diversification, REIT investors could spread their risk among other investors of REITs through REIT ETFs. You would be spoilt for the choice of options.
REITs would offer some significant tax benefits that neither home ownership, nor investments in bonds or stocks would offer.
You should rest assured that nothing could beat cash. However, you may come across a few things equal to it. The cash equivalents would be best defined as a kind of investment to be made by anyone who cannot afford to lose a penny of the investment made by them. It would be a great place to hold money. For instance, the money you look forward to using for the upcoming vacation or for a down payment on a house that you wish to purchase in the coming future would prove as a great source of investment. Cash equivalents would be inclusive of money markets, saving accounts, and certificates of deposit or CDs.
A plethora of cash equivalents would be 100% liquid money. It implies that you may go to a bank with a bag and collect your money as and when you desire. A majority of CDs would need you to keep your deposit in place for a fixed time for receiving a higher interest rate compared to what you might receive from a savings account. Interested in MICs? Choose Nest Capital as your Toronto investment advisor and start investing in mortgages.