You may have heard people say that it’s good to diversify your portfolio, and you should listen. We’ve created a list of smart investments to make on a middle-class income, but remember that when one market slumps, another usually rises. Don’t put all your eggs in one basket and keep your investments spread across multiple sectors.
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Tech Stocks
Technology is a relatively safe place to park your money for a few decades, as we’ve seen incredible advancements over the last 15 years. Where the iPhone was once an extravagant luxury, now almost half of all US citizens have one in their pocket. There’s consistent demand for technology, so these stocks are a great place to put your savings.
Investment Properties
Real estate is consistently among the top investment options for people of all income levels. There’s high demand for real estate and a consistently growing population in need of housing, so it’s a no-brainer. Saving up for a house to flip is a smart move, and investing in a rental to create a passive income stream can be even better.
Self-Directed IRA
A self-directed IRA is perfect for someone who wants to take charge of their retirement account. Some retirement plans involve outside management, but a self-directed IRA allows you to make decisions for yourself. If you want control over your retirement, there’s no better option than this.
Avoid Penny Stocks
Over the past year, we’ve seen some stocks rise rapidly, only to fall just as quickly. While penny stocks offer the chance of rapid growth, it’s more likely that they will see a gradual decline. The smartest way to invest your money is with safe options that are expected to grow consistently. Otherwise, you risk losing a massive percentage of your portfolio to a bad tip or two.
Now that you know these smart investments to make on middle-class income and what to avoid, enjoy growing your money with a diversified portfolio.
