Your goal as an investor is no doubt to grow as much wealth as possible. But if you stick to the same old routine, that may not happen. Here are a few things you can do to take your portfolio to the next level.
1. Load up on S&P 500 ETFs
The tricky thing about choosing individual stocks is having to sink a lot of time into researching each one. If you want an easy way to diversify within your portfolio, consider adding S&P 500 ETFs to your personal mix.
The beauty of ETFs is getting to own a bunch of different companies with a single investment. And given that the S&P 500 has a long history of solid returns, it's a good way to gain exposure to different corners of the market — all without running the risk of choosing the wrong companies within a given sector.
2. Dabble in crypto
Cryptocurrency is a risky, volatile investment. But it's also an asset that's rewarded many investors generously in recent years.
Now this isn't to say that you should sell off a huge chunk of stocks and put 50% of your portfolio into crypto. But you may want to consider putting a small portion of your assets into digital currencies.
There's a world of opportunity within the crypto space, so don't just settle on a currency whose name you see in the news a lot. Instead, do your research, as there are thousands of digital currencies circulating.
3. Branch out into real estate
What makes both S&P 500 ETFs and cryptocurrency appealing is that both offer the opportunity to diversify. The same holds true for real estate.
The value of real estate often doesn't rise and fall in conjunction with stock market gains and losses, and so if you add it to your personal mix, it'll serve as a form of protection while opening the door to growth opportunities. For example, you might buy an income property whose value rises steadily over 10 years, even if stock values jump and tumble during that same period.
That said, there are risks in owning physical real estate, and being a landlord (even a hands-off landlord) isn't for everyone, despite the income-generating opportunities it offers. But there's another way to invest in real estate without actually owning property. You add REITs, or real estate investment trusts, to your portfolio instead.
REITs are companies that derive revenue by owning and operating different properties. Within the realm of REITs, there are different sectors you can explore, the same way your stock holdings might encompass energy companies, tech companies, auto makers, and banks.
The great thing about REITs is that they tend to pay higher-than-average dividends. And because of the way they make money, they don't always move in the same direction as stocks when the broad market tanks.
If your goal is to enjoy the maximum amount of success as an investor, then it pays to consider adding S&P 500 ETFs, digital currencies, and real estate to your portfolio. It could set the stage for a world of near-term and long-term growth.
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