Investing is absolutely essential for most of us to secure a comfortable financial future. As the Covid-19 pandemic rightfully demonstrated, even a stable economy can collapse and turn on its head in a matter of a couple of years. This has left many (who were not prepared for challenging times) scrambling for income.
In these times of a tanking economy and high inflation, the most important question is: what are the best investments to make in 2022? To answer this question, William Schantz will discuss the four best investments you can make in 2022.
4 Best Investments to Make in 2022 as Per Schantz
According to Schantz, the following are the four best investments to make in 2022:
1. Government Bond Funds
One of the most common and traditional ways to save money for a better future is investing in short-term government bond funds. These bonds are mutual funds or exchange-traded funds (EFTs) that invest in debt securities issued by the United States government and its agencies.
The primary advantage of investing in these bond funds is that you’re not exposed to significant risk when interest rates rise. According to Schantz, if you’re new to investing and are looking for cash flow, you should consider investing in these short-term government bond funds.
2. High-Yield Savings Accounts
Investing in high-yield accounts is another fantastic way to grow your savings, helping you enjoy a comfortable financial future. The working mechanism of a high-yield savings account is pretty straightforward: you deposit your money in the account, and it pays you interest on your cash balance.
These savings accounts provide you with secure ways to keep your money and access it whenever you need it. The best part about high-yield savings accounts is that you can earn significantly higher interest rates with few overhead costs. On top of that, you can access the deposited money by transferring it to your primary bank account in a few simple steps, or you can withdraw it from an ATM.
3. Corporate Bond Funds
These types of bonds are often offered by corporations to investors, allowing them to save a good amount of their income. The average maturity of these short-term bonds ranges between one to five years. This makes them less vulnerable to changes in interest rate than long-term bonds.
As per Schantz, these bonds can be an excellent form of investment for those looking for cash flow. These include retirees or those looking to reduce their portfolio risk but still earn a return.
4. Certificates of Deposit (CDs)
These certificates are issued by banks and generally come with a better interest rate than savings accounts. Short-term CDs are considered a better investment option, particularly when interest rates are expected to spike. Moreover, this type of investment allows you to reinvest at higher interest rates when your CD matures.
One thing to note here is that these CDs come with specific maturity dates, ranging from several months to several years. Also, these CDs are time deposits, which means you’re not allowed to withdraw cash for a certain period without penalty.
The Final Verdict by Schantz
It’s no secret that investing plays a pivotal role in helping you secure a comfortable financial future. However, some people still seem less interested in making investments at the right time, only to regret it later (when it’s too late). There are many investment options, from short-term CDs to short-term government bonds. If you’re looking to invest in 2022 but are unsure where to start, check out the list created by William Schantz.