Since 2008, investing is something that a lot of people don’t feel comfortable doing. There is a great deal of uncertainty in the markets, although they do appear to be doing better lately. When it comes to choosing investment strategies to work with for your portfolio, you may have to get a little bit creative and explore your alternatives. Here are some of the best 2013 investment pointers to keep in mind for the coming year.
Explore Precious Metals
One of the best things that you can do in today’s investment world is explore precious metals. Precious metals like gold, silver, and palladium have increased in value substantially in the last decade. Many believe that they are poised to continue to increase in value over the long-term. While the short-term price of precious metals may decrease, the long-term looks good. As governments and central banks continue to engage in quantitative easing, the price of gold and silver will continue to rise.
Look at Emerging Markets
In 2013, you may want to take a strong look at emerging markets. While investing in strong companies in proven economies does provide a little bit more safety, it also tends to limit the amount of returns that you can really achieve. By putting money into emerging markets, you have a much better chance to bring in substantial gains. For instance, putting money into emerging market bonds, you have an opportunity to earn 5-7 percent interest. When you compare that to the 1 percent or less that you can get from Treasury bonds or corporate bonds in the United States, you really have a golden opportunity in front of you.
Use a Roth IRA
If you haven’t started using one already, it makes sense to start investing in a Roth IRA. Fisher Investments Forbes articles point to the Roth IRA being one of the best investment tools available. With so much uncertainty in the political realm, it’s really impossible to predict what will happen with tax rates by the time you retire. It makes sense to go ahead and handle the tax rates while they are probably as low as they’re going to get. Then when the country decides to take care of its debts, the tax rate will inevitably be increased. If you have a Roth IRA, you won’t have to worry about that during your retirement.
Regardless of what you do during 2013, don’t just sit on the sidelines. If you’re going to beat inflation, you have to get into the ballgame.
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