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Best Investments of March 2024

Sarah Sharkey
By
Sarah Sharkey
Sarah Sharkey

Sarah Sharkey

Contributor

Sarah Sharkey is a personal finance writer who enjoys diving into the details to help readers make savvy financial decisions. She lives in Florida with her husband and dogs. When she’s not writing, she’s outside exploring the coast.

Read Sarah Sharkey's full bio
Robert Thorpe
Reviewed By
Robert Thorpe
Robert Thorpe

Robert Thorpe

Senior Editor

Robert is a senior editor at Newsweek, specializing in a range of personal finance topics, including credit cards, loans and banking. Prior to Newsweek, he worked at Bankrate as the lead editor for small business loans and as a credit cards writer and editor. He has also written and edited for CreditCards.com, The Points Guy and The Motley Fool Ascent.

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Our research is designed to provide you with a comprehensive understanding of personal finance services and products that best suit your needs. To help you in the decision-making process, our expert contributors compare common preferences and potential pain points, such as affordability, accessibility, and credibility.

Saving money is important. But choosing to invest your funds pushes your finances to the next level. When done correctly, investing offers an opportunity to grow your funds for the long term. As you look to build an investment portfolio in 2024, selecting the right investments for your situation can make all the difference.

To help you find the best ways to invest money, here’s a look at some of the top investments of 2024.

Vault’s Viewpoint on Investing in 2024

  • The best investment for you strikes a balance between potential gains and your risk tolerance.
  • Investors with a low risk tolerance might opt for a high-yield savings account or CDs.
  • Investors with a long-term outlook might pursue the potentially higher returns offered by stocks.

Best Investments in 2024

If you want to start investing, you’ll find a wide range of investment options. Keep in mind that it’s generally a good idea to include multiple types of investments in your portfolio to create a balanced mix of assets.

1. High-Yield Savings Account

A high-yield savings account is similar to a traditional savings account except that it pays higher yields. Those higher yields can help you grow your funds more quickly.

Advantages: A high-yield savings account comes with minimal risk. You won’t give up easy access to your funds. And most accounts are FDIC or NCUA insured, which means your funds are protected against loss up to the limits.

Disadvantages: If the interest rate attached to a high-yield savings account is too low, inflation could eat away at your real purchasing power. Also, the interest rate attached can change at any time, which means your expected returns could take a cut at any time.

Who it’s best for: A high-yield savings account is a good option for investors who want to retain easy access to their funds. If you are worried about giving up access or putting your funds at risk of loss, a high-yield savings account is a flexible choice with built-in protections.

How to get: Many of the best high-yield savings accounts are found with online banks, which typically have less overhead costs than traditional brick-and-mortar banks.

2. Certificate of Deposit

A certificate of deposit (CD) is a type of timed deposit account that offers a predetermined interest rate over a specific term length. Some CDs even offer higher annual percentage yields (APYs) than a high-yield savings account. The downside is that you must agree to give up access to the funds for a set period. If you need to withdraw funds before the CD matures, you’ll face an early withdrawal penalty.

Advantages: When you put your funds into a CD, you’ll know exactly how much interest you’ll earn over the term. The predictability of a CD is undeniably attractive to many investors looking for a low-risk option.

Disadvantages: Like a high-yield savings account, CDs come with the risk that your interest returns will be outpaced by inflation. Plus, there is some reinvestment risk, which means that when your CD matures, you might find lower interest rates available to reinvest the funds into. Or you could get locked into a CD with a relatively low rate, only to watch CD rates rise throughout your term.

Who it’s best for: CDs tend to be a good choice for investors looking for predictable returns. Since the funds are inaccessible, CDs are usually best for individuals who have an accessible stash of cash to cover any emergencies that might arise during the CD term.

How to get: CDs come in various term lengths, ranging from a few days to several years. The best CD rates are usually available through online financial institutions.

3. Money Market Account

A money market account is a deposit account offered through some banks and credit unions. Money market accounts tend to offer you higher interest rates and more flexible access than a traditional savings account. In terms of access to your funds, some money market accounts allow you to make withdrawals by check, debit card, or electronic transfer.

Advantages: A money market account offers a relatively safe and flexible place to store your cash without giving up the opportunity to earn an attractive APY on your funds. In addition to flexible access and worthwhile interest rates, many money market accounts are FDIC or NCUA insured, which means your funds are protected against loss up to the coverage limits.

Disadvantages: The interest rate attached to a money market account can change without warning. If the interest rate falls too low, the purchasing power of your funds may fall due to the corrosive power of inflation.

Who it’s best for: Money market accounts tend to be a good option for investors who want to maintain flexible access to their cash. The built-in protections and attractive APYs can help you grow your funds without too much risk.

How to get: Compare rates across multiple banks and credit unions to find a money market account offering the most attractive rates and the type of access you prefer.

4. Individual Stocks

A stock represents an ownership share in a particular company. The two main types of stocks are common and preferred.

Common stocks grant voting rights to shareholders and are better suited for long-term investors due to higher growth potential over time. Preferred stocks don’t grant shareholders voting rights but do give them priority over common shareholders. That means preferred shareholders are prioritized first when a company pays dividends or distributes assets. They’re often less risky than common stocks and tend to offer more consistent dividends.

Advantages: Stocks tend to come with higher potential returns than other investments, like CDs or high-yield savings accounts.

Disadvantages: Individual stock investments come with a higher level of risk, which means there is a chance you’ll lose money. Stocks also tend to be more volatile, which could make for a bumpy ride for investors.

Who it’s best for: Investors willing to put the time and research in and who can weather the higher volatility may want to include individual stocks in a well-diversified investment portfolio.

How to get: You can buy individual stocks through an online brokerage platform. Start by opening a brokerage account on the platform of your choice, then order the individual stock you have in mind.

5. Mutual Funds

Mutual funds are companies that pool money from multiple investors to purchase a portfolio of assets, which often includes stocks and bonds. Most mutual funds are actively managed by a professional manager or team who decides which assets make up the portfolio. As an investor, you’ll purchase a share of the mutual fund.

Advantages: As a shareholder, you’ll tap into the benefits tied to a diverse selection of underlying assets without having to build out that diversification on your own. With more exposure across the fund’s chosen area, you can hedge against losses from any individual stock within the fund. If you need to sell your shares, the high liquidity of mutual funds is a perk.

Disadvantages: Mutual funds tend to come with relatively high expense ratios that can eat into your overall investment returns. Additionally, the outsourced nature of a mutual fund means that you can face uncontrollable tax events, which can lead to tax inefficiencies for your investment portfolio.

Who it’s best for: Investors who want to build a diverse investment portfolio with minimal effort.

How to get: Mutual funds are readily available through many brokerage platforms.

6. Index Funds

Index funds are a type of mutual fund or exchange-traded fund (ETF) that includes the stocks of a particular market index. Some common indexes include the S&P 500, Russell 2000 and the Dow Jones Industrial Average. It’s easy to find an index fund that focuses on one of these popular indexes.

With an index fund, the goal is to keep investment returns on pace with the chosen index. That’s in contrast to actively managed mutual funds, which usually intend to beat the market.

Advantages: Index funds tend to perform better than actively managed funds and come with lower management fees, which can help you propel your investment portfolio forward.

Disadvantages: Since an index fund is designed to keep pace with the market, your portfolio may experience significant volatility. If you aren’t ready to watch the rollercoaster ride of the stock market, then an index fund might not be a good fit.

Who it’s best for: An index fund is often a good choice for investors seeking a diversified portfolio and who plan to stay invested for at least three years.

How to get: You can purchase index funds through brokerage platforms.

7. Bonds

A bond is a type of debt security issued by governments and corporations to raise money. As the investor, you’ll lend money to the bond issuer when you purchase the bond. In exchange, the issuer promises to repay the funds plus interest over a set period. Bonds associated with a higher level of risk tend to come with higher interest rates attached. In contrast, bonds with a lower level of risk often come with lower interest rates.

Advantages: Government bonds tend to come with a low level of risk. The predictable investment growth offered by government bonds is enticing for investors who crave stability.

Disadvantages: Opting for a government bond lowers your risk but it also lowers your potential returns. Investors could choose a corporate bond with higher risks to chase higher returns, but you may lose money.

Who it’s best for: Government bonds are a good choice for investors seeking a low-risk option and are comfortable with relatively low returns. Corporate bonds might be a better fit if you are comfortable taking on more risk.

How to get: You can buy government bonds directly from the U.S. government or a brokerage platform. Similarly, corporate bonds can be purchased through a broker.

8. Rental Properties

If you are willing to become a landlord, purchasing rental properties offers an investment opportunity. Essentially, you’ll obtain a property through either financing or a cash purchase. From there, you’ll rent out the property to tenants in exchange for a monthly rental payment.

Advantages: Rental properties can help you build a new stream of income. As an individual real estate investor, you can maintain control over the asset.

Disadvantages: As a landlord, you might face headaches from managing tenants and maintaining a property. Additionally, real estate isn’t a liquid asset that you can sell at the drop of a hat.

Who it’s best for: Long-term investors who want to generate a new income stream and don’t mind fielding calls from tenants or property managers will find rental properties a worthwhile investment.

How to get: Purchasing rental property often involves working with a real estate agent or networking with other real estate agents in your target area.

9. REITs

As an asset class, real estate is a worthwhile investment. But if you aren’t interested in purchasing individual properties, real estate investment trusts (REITs) are a good option. The REIT will purchase and manage different types of income-generating real estate assets, and investors get a share of the profits.

Advantages: Many REITs offer dividend payments, which could help you generate an income stream based on real estate without the time commitment of managing individual properties.

Disadvantages: You won’t be in control of the underlying assets. Plus, your earnings may be lower due to management fees charged by the REIT.

Who it’s best for: Investors with a robust portfolio and long-term outlook who are looking for more diversification might turn to REITs, which come with higher risks but offer an opportunity for greater returns.

How to get: Many REITs are publicly traded, which means you can purchase shares through a brokerage platform.

10. Alternative Investments

Alternative investments are assets that fall outside of traditional stocks, bonds and cash. Popular options include:

  • Cryptocurrency
  • Hedge funds
  • Private debt
  • Precious metals
  • Collectibles
  • Art

Advantages: Some alternative investments offer valuable potential returns. Not only can adding alternative assets to your portfolio help you diversify your investments, but it might also allow you to lean into a particular interest. For example, investors with an interest in art might pursue art investments while investors who enjoy history might prefer to invest in old coins.

Disadvantages: Many alternative investments come with high levels of risk. The high risks could lead to loss in value over time. Additionally, alternative investments may be more difficult to buy and sell than more mainstream investment choices.

Who it’s best for: Experienced investors who want to add more diversity to their investment portfolio should consider alternative assets.

How to get: Some online brokerage platforms allow you to purchase alternative assets, like cryptocurrencies. But depending on the alternative investment you have in mind, you might need to get creative in your purchasing strategy.

How To Choose the Best Investment

The best investments right now vary based on your unique situation. As you consider your investment options, keep the following in mind.

  • Other financial goals: Before you jump into investing, give some thought to your financial priorities, such as building an emergency fund and paying off high-interest debt
  • Risk tolerance: In the investment world, accepting bigger risks generally translates into the potential to earn higher returns. But if you aren’t willing to take on more risk, you’ll need to get comfortable with lower investment returns.
  • Timeline: Money that you want access to in the short term is best kept in investments with low risks. But if you have a long-term investment plan, opting for more volatile assets could help you tap higher returns.
  • Time commitment: If you are looking for a hands-off investment, assets with a big time commitment, like real estate, might not be the right fit. Consider how much time you have to commit to managing an asset.

Frequently Asked Questions

What Is the Best Thing To Invest in Right Now?

The best investment depends on your financial situation and goals. Some of the top options to consider include stocks, bonds, mutual funds, high-yield savings accounts, CDs, real estate, and cryptocurrencies.

How Much Money Do I Need To Invest To Make $3,000 per Month?

The amount of money you’ll need to invest to earn $3,000 per month varies based on your investment returns. But if you build a portfolio that generates 4% returns, then you’ll need to invest $900,000 to earn $3,000 per month.

Is 30 Too Late To Start Investing?

You are never too old to start investing. At age 30, you have decades ahead to build a robust investment portfolio. But don’t put off investing for too long. The earlier you start investing, the longer your funds have to grow.

Editorial Note: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, hotel, airline or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post. We may earn a commission from partner links on Newsweek, but commissions do not affect our editors’ opinions or evaluations.

Sarah Sharkey

Sarah Sharkey

Contributor

Sarah Sharkey is a personal finance writer who enjoys diving into the details to help readers make savvy financial decisions. She lives in Florida with her husband and dogs. When she’s not writing, she’s outside exploring the coast.

Read more articles by Sarah Sharkey