Wednesday, November 30
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What Are the Different Types of Asset Classes?

The stock market is the most popular place for Americans to invest their money. It has produced countless millionaires, and many millions of happy, retired workers.

But more than half of Americans still don’t invest in the stock market. Many don’t have any money invested at all.

Do you know what that means? That means no safety net, no retirement, and having a job until the day you die. Let that sink in for a moment.

Do you feel the fire under you now? Then it’s time to understand the different types of asset classes that are currently available, so you can learn how easy it is to start investing today.

You can’t wait any longer. The sooner you start your portfolio, the sooner your money starts making more money on your behalf.

Keep reading below to understand the main asset classes available today.

Stocks

As mentioned earlier, stocks, or equities, are the most common form of investment options in the US. Stocks are shares of a company. When you buy one share, you own one piece of a particular company.

When you buy 100 shares, you own 100 pieces of that company. If a company continues to do well, growing and expanding and attracting additional investment, the value of those shares will go up.

This is what builds your wealth. On top of that, many companies will use their profits to pay their shareholders on a quarterly basis. This is your dividend, and it can be used to buy more shares of that company.

Bonds

Bonds are a little more boring than stocks. But they produce a stable, fixed income for bondholders. They are a safer investment, but the yields can be lower than stocks.

Still, bonds are one of the investment assets that need to be part of your portfolio to balance out more volatile stocks.

Real Estate

You can invest in real estate directly, by purchasing houses, apartments, or commercial buildings and renting them out. Or you can invest the easier way by purchasing REITs, real estate investment trusts.

Buying into REITs is very similar to stocks. When you buy in, you own a piece of a particular property or group of properties.

Precious Metal

Precious metals, such as gold, silver, or platinum, have been valuable for thousands of years. They are a limited resource, and they are used in many types of manufacturing. Over time, their value steadily rises, providing another safe asset in your portfolio.

You can invest in bars or coins. Need some gold? You can shop gold coins online here.

Cryptocurrency

Cryptocurrency is a brand new asset class, having only come onto the scene in 2009. But the price of certain cryptocurrencies has skyrocketed, leading to unimaginable returns for early investors.

While the crypto market is still hot and growing, it’s very volatile. Invest cautiously.

Stock Up on Different Types of Asset Classes Today

There are other types of asset classes as well, some of which are more advanced and specialized. But as a new investor, these are the places to focus your money.

Don’t store your wealth in a savings account or money market account, earning next to no return. Invest. It’s easier than ever before. Your future depends on it.

Looking for more financial tips like this? Visit our blog now to keep reading.