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.
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.
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.