Where Should You Invest Your Money in 2016?

10-11-2015 | Anne Seymour |

Good news everyone!

Economists are predicting further economic growth in 2016. Institutions such as the International Monetary Fund, the World Bank, the Organization for Cooperation and Development (OECD) all agree that next year will outperform 2014 and ‘15. According to recent studies, global economic growth is set to rise by 3.5%, allowing a faster economy, supporting stock markets globally.

Investing suddenly seems like a valid option again, but many are still hesitant to keep their money anywhere other than under their bed. So where should you invest your hard earned money? Stocks? Bonds? A decent accountant? Maybe, but there are still minimal-risk investment options – they may not be flashy, but they will save you money in the long run.

Government Bonds

If you fancy visiting the stock exchange from time to time, but the lifestyle (and pinstripe suites) from the movie ‘Wall Street’ didn’t really suit you, then why not invest in a government bond? Often traded on the open market, government bonds guarantee your money back, along with a little something each year until the term ends, and with new technological advancements are easier to trade than ever before. Sure they may not provide the ‘fast money’ that Gordon Gekko promised, but his story didn’t end too well anyway. Government bonds are a staple for any properly maintained financial portfolio, so why not begin yours with one?

Take ‘Stock’ of Your Finances

Speaking of your investment portfolio, if you’re lucky enough to have one, the simplest way to make the most of what you have is to do a little spring cleaning – or in this case, ‘December cleaning’. Each December, take a little time to check how your investments did over the course of the year, and use that info to plan your strategy going forward. This time can save you thousands in the long run as taxable accounts that may not have been as successful as you hoped can be booked as tax losses, which can help you to offset any future tax liability.

Funeral Expenses

Remember when I said that these options “may not be flashy”? I really wasn’t kidding!

No-one likes to think about it, but unless there are some serious medical advances on the way, we simply can’t avoid that we’ll need to have a funeral. Funeral expenses continually increase above inflation every year; however, making plans now will help to spread that cost more easily. Ensure that your hard-earned money goes to those that need it most rather than an unnecessarily expensive funeral, unless you’re old school and quite fancy the whole ‘build me a pyramid with all of my gold’ thing. That might just be me though.

About Anne Seymour

Anne is a young webpreneur, interested in all things related to money: earning, investing, saving. She's paid off her student loans and now is looking forward to doing a lot of writing and traveling.

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Recent Comments

  • jANE

    November 12, 2015 at 7:41 am

    It’s a bit early for me to think about my own funeral 😀 but I do agree investing in a funeral plan is a smart move! I’d love to spare my loved ones at least the financial effort. I assume they’d be sad enough already.

  • Bluejay88

    November 13, 2015 at 9:23 am

    Economic growth is always good news! However, since I’ve practically learned that nothing is safe in the world of finances (well, I think we all learned this lesson when everything collapsed all of a sudden a few years ago), I’d probably keep investing in ETF’s. I like to minimize the risk as much as possible. Real estate is also something worth looking into in 2016, the only tricky part looking out for the best deals.

    • Ramona

      November 13, 2015 at 11:55 am

      Real estate for us is still tough, since we don’t have too much money yet, but I am really looking forward to getting into this business a bit. Also getting some gold to store would be another pretty good idea.

  • poprocks

    November 15, 2015 at 1:06 am

    My investments are still a tad below par from the China wobble, which is a bit depressing. Hopefully it will turn around next year.

    I cover funeral costs within my health insurance. including repatriation of remains as I am a immigrant. It may be a bit morbid, but better than leaving my family to work it out if the worst should happen.

  • Jasmine2015

    November 15, 2015 at 3:13 am

    I have never heard of government bonds before. Now I have some homework to do. I haven’t thought about saving for my own funeral because well, I usually don’t think about those types of things. I would like to own a few nice properties but I’m afraid of bad tenants.

  • Rebekah

    November 25, 2015 at 4:58 pm

    There is no safe return of my hard earned money– no guarantee of my money’s investment if I let the government in on my income. In my and my husband’s Golden Years, we talk about writing our Will and Testament and looking into buying a plot for our burial site, set aside superannuation into investing for our funeral expenses. So as to relieve our children of the burden.

  • Stephen Juarez

    January 12, 2016 at 9:14 am

    Funeral expenses isn’t that much of a big deal but it is a must. Because let’s be honest, you need this assurance that you won’t be a huge bother to them when you leave.

  • Jose Mari Gamboa

    May 19, 2016 at 1:39 am

    Real Estate is a good investment for the year 2016 since the rise of condominiums, buildings and commercial establishments. I myself invest in real estate. There is a huge return in investment. I do agree about Funeral Expense. The rise of cremation might be something to look at. Thank you for this informative article! Good Read!

  • Herman

    May 25, 2016 at 10:40 am

    I was looking for some helpful post for investment in this year. Glad that I came across this post.
    The concept of government bond is new to me. So I got to learn something new.
    Thank you for this helpful post buddy..!!1

  • MoreDividends

    May 26, 2016 at 3:18 am

    I personally am a huge fan of investing in dividend stocks with all of the dividends set to reinvest. This is a good strategy because the company is paying you just for being a shareholder.

    In a good market, where the prices of shares are going up, you will have capital gains on your shares. In a bad market, where the share price is low, it allows for you to acquire more shares at a better price.

    This strategy only works if you pick good companies, that are selling at a fair price and you invest for the long term. Its a great way to build wealth!

  • Mangrove Realty

    June 8, 2016 at 9:39 am

    There cannot be a fixed rule applicable for all because everyone has different needs, goals and wants. Every one has a different financial background and a different risk appetite. So where does one start in general?

    Begin with jotting down your goals and years you have in hand to achieve this goals. Once you do this exercise, you will have a fair idea of what the whole picture looks like.

  • Sue Anne Reyes

    June 13, 2016 at 6:27 am

    Hello! It was so nice that I found this site. I’m really looking for a possible investment this year. Kudos for sharing this one!

  • Chinkee Tan

    July 13, 2016 at 2:23 am

    Good reads! Thanks for suggesting these investment potentials. However, I think it’s always best to be extra careful in budgeting your finances and conduct further research where to really invest them. Stocks can be risky, as well as government bonds. But buying a funeral plan ? you can do that on the latter part of your life I believe, if you’re in your 20s – 30s focus on saving first. 🙂

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