Planning to make some investments in 2017? Then read on to discover five investments you should make this year…
1) Debt be gone
It might seem odd because you’re getting rid of something, rather than buying something; and that might seem counter-intuitive. But, and it’s a big but, being in debt costs you money. So, one of the most lucrative investments you could make this year is to get rid of your debt. Finding an investment that would earn you as much interest, as you lose on your credit card each month, would be a fine thing indeed. Though we think of credit cards as having interest rates in the late teens, they are often very much more now.
So first and foremost get rid of your debt if you can. With household debt in the UK reportedly rising, getting rid of your debt is probably one of the best investment decisions you could make. List all your debts and the interest rates you are charged, identify the one with the highest interest and pay it off first. Also, don’t dismiss your mortgage in this, make overpayments if you can to save yourself interest — just check you won’t face any penalties or charges for early repayment.
2) Take out an ISA
Ensure you use your ISA allowance in 2017/2018 — the allowance is set at £20,000, so don’t miss out, you could be earning interest on your savings or investments without being charged income tax.
3) Pool your resources
Pool your resources with others in an open-ended investment company (OEIC), which in turn will invest in a range of investments and companies, providing a broad portfolio of short, medium and long-term returns.
Consider investing in shares. Some people enjoy the thrill of the search, the choice, and the challenge when investing in shares directly. However, if you don’t feel confident selecting shares yourself, then, seek the assistance of an asset management company to help you.
If you want an investment for the long term, then consider investing in property. No, it’s not likely to be lucrative in the short term, but you would be investing in bricks and mortar — a physical asset; and it could provide you with a regular income.
Though there are no guarantees with any investment, property has been shown to hold its value and grow over time. In addition, the percentage of people renting in the UK is rising, and demand for those rental properties has to be met somehow.
Just ensure you do your research beforehand, look closely at the area, the property itself, the overheads and responsibilities you’ll have, plus the possible rental income. If researching and investing in a particular property is too great a burden, then consider investing in property bonds.
Your investments in 2017
So there you have an overview of investments you could make in 2017. If you’re not sure where to start when it comes to investing your funds, then seek independent financial advice.