12 Assets That Are Better Than Cash Right Now

Do you hear that do you feel it in the air that's the sound of inflation robbing everyone holding cash for their wealth only a few of us can hear? Can you hear it too we know you do the government released the official numbers for inflation at 6.2 percent but behind closed doors, every financial institution with a respectable analysis department already put the current inflation in the double digits, Jack Dorsey, the CEO of Twitter and founder of square one of the largest payment processors on the web warns about the info. They're getting from the market and how hyperinflation is coming before you smirk ironically that this only happens in the u.s we have to burst your bubble every government out there is printing money like crazy diluting your wealth and modern society is on the brink of financial collapse welcome to  alux.com the place where future billionaires come to get inspired if you're not subscribed yet you're missing out so in this Sunday motivational video we'll be going through 15 assets that are currently a better investment than holding cash hopefully it helps you to prepare for what's coming right now and by the end of it you'll only keep cash for essentials and reinvest everything else let's do this.

number one real estate yup real estate prices are going through the roof right now why people realize what printing money out of thin air does to the economy so they look for investments considered strong stores of value real estate is by far the best store of value we've had until now here's something most people don't realize the value of your home doesn't actually go up it's not like overnight it grew a bathroom it's the purchasing power of the currency that's going down so you need more cash to buy the same thing zillow the largest real estate marketplace in the u.s saw the price of the average home in the country double in the last five years and the rhythm of price increase is only picking up the average price increased by 18 in the last 12 months and their data indicates a future increase of 13 moving forward and if you take into account the increase in raw material prices we expect the price for new apartments to be considerably higher than they are now at this rate saving up to buy a house is one of the most expensive things you can do.

1. Owning Your Primary Residence

Homeownership ranks among the most common ways people gain a substantial increase in net worth. Instead of choosing the traditional 30-year mortgage, opt for a 15- or 20-year term, so you can pay it off more quickly, which will result in a significant asset and savings on interest. And if you decide to sell after you pay your home off, capital gains are tax-free up to $500,000, as long as your status is married filing jointly.

Renting might make more financial sense than owning in some high-priced urban areas, depending on whether the cost of ownership is reasonable in relation to total living expenses.

2. Retirement Savings

Retirement might be decades in the future, but saving now can enhance your net worth.

Saving for retirement is something you can start doing now, and tax-deferred accounts, such as a 401(k) or a traditional IRA, can help your savings balance grow more quickly. Make it a goal to max out your retirement contributions by contributing a set amount to each paycheck, especially if there’s a company match. By treating your savings contributions as a budget item, you’ll consistently put money away, which will allow it to grow and increase your net worth.

3. U.S. Treasury Bonds

U.S. Treasury bonds are widely considered the safest investments on earth. Because the United States government has never defaulted on its debt, investors see U.S. Treasuries as highly secure investment vehicles.

“Treasuries have become less attractive recently because of their low yields,” says Matthews. “However, you can get some inflation protection when you choose TIPS, which are inflation-protected Treasury bonds.”

You can buy government bonds directly from the U.S. Treasury or on secondary markets, via an online brokerage platform. Matthews cautions against the secondary market since resellers often tack on added costs whereas you can buy U.S. Treasuries free of fees at treasurydirect.gov.

You can also invest in mutual funds and exchange-traded funds (ETFs) that exclusively hold U.S. Treasuries. This frees you from the complications of purchasing individual bonds and removes the hassle of reselling them on the secondary market if you need cash before the bond matures.

4. Corporate Bonds

If you want higher yields, consider corporate bonds. They generally offer more appealing interest rates but also carry more risk as few companies have the repayment record of Uncle Sam.

To ensure you’re making a safe investment, it’s important to review the rating on bonds. Matthews suggests looking at corporate bonds that are rated as investment grade, which usually means a rating of AAA, AA, A, and BBB. Anything else might have even higher yields but also much greater risk.

It’s possible to purchase bonds via an online broker, but Matthews warns that many bond transactions charge higher fees than stock transactions.

To avoid fees and reduce the risk any one company defaults, look to bond mutual funds and bond ETFs, which invest in hundreds or thousands of company bonds. Most index-based ETFs and mutual funds will be available without trading fees from most brokerages these days, but it’s important to double-check as well as to look out for load fees on mutual funds.

5. Rental Real Estate

When you use the bank’s money to acquire rental properties, you’re effectively building your net worth. Once you start renting out the properties, use the income to pay off the mortgages instead of dipping into your bank account. Your properties will gain equity; plus, their market value should increase over time.

If you’re not ready to acquire properties solely on your own, but you have real estate savvy, you can get a group of investors to come up with the down payment with the understanding that you’ll have a percentage of ownership in the property. And once you’ve successfully financed the rental property, you can negotiate a fee from the investors for its management.

6. High-Yield Savings Accounts

High-yield savings accounts are just about the safest type of account for your money. These Federal Deposit Insurance Corporation (FDIC)-insured bank accounts are highly liquid and immune to market fluctuations. Just keep in mind, if inflation is higher than your annual percentage yield (APY), your money could lose purchasing power.

Interest rates are generally low across the board for deposit accounts—and they’ll stay that way for the foreseeable future. However, you can earn modest returns with the best savings accounts, even if they won’t always keep up with inflation.

7. Precious Metals

One doomsday scenario in which financial markets cease to function holds that gold, silver, and other metals such as platinum or copper will continue to retain their value, if not appreciated.

The likelihood of having to return to a barter system with physical goods is minimal, but it may make sense to hold a certain percentage of your assets in this form. For one, precious metals have historically provided a low or negative correlation to other asset classes like stocks and bonds—which is to say, when those investments go south, metals are unlikely to follow, at least very far, and may even increase in value.

8. Luxury Assets

This category of tangible assets encompasses fine art, cars, watches, diamonds, and other jewels, and just about anything that qualifies as a collectible. In their favor, they're objects that can be touched and seen, compared to a bank account statement that could take time to collect on if the financial institution that housed it ceases to exist.

That said, luxe investments are hardly a sure bet. While data on their historical returns are elusive, they are generally thought to have lagged stock market returns, while having periods of rapid appreciation due to either strong financial market performance or periods of popularity, which increases underlying demand and resulting prices.

9. Cash, Hidden Away

Although stuffing money under your mattress has become a cliché, it unquestionably keeps your funds close at hand, if not necessarily secure. You could, of course, also hide your assets in a safe deposit box or safe.

Again, this method probably qualifies only for a doomsday scenario, or for times of a short-term liquidity crunch. Even then, keep only a small stash, not least because inflation steadily erodes the value of currency over time. In deflation, the opposite is true, of course.

10. Mutual funds

A mutual fund pools cash from investors to buy stocks, bonds or other assets. Mutual funds offer investors an inexpensive way to diversify — spreading their money across multiple investments — to hedge against any single investment’s losses.

Best for: If you’re saving for retirement or another long-term goal, mutual funds are a convenient way to get exposure to the stock market’s superior investment returns without having to purchase and manage a portfolio of individual stocks. Some funds limit the scope of their investments to companies that fit certain criteria, such as technology companies in the biotech industry or corporations that pay high dividends. That allows you to focus on certain investing niches.

Where to buy mutual funds: Mutual funds are available directly from the companies that manage them, as well as through discount brokerage firms. Almost all of the mutual fund providers we review offer no-transaction-fee mutual funds (which means no commissions) as well as tools to help you pick funds. Be aware that mutual funds typically require a minimum initial investment of anywhere from $500 to thousands of dollars, although some providers will waive the minimum if you agree to set up automatic monthly investments.

11. Index funds

An index fund is a type of mutual fund that holds the stocks in a particular market index (e.g., the S&P 500 or the Dow Jones Industrial Average). The aim is to provide investment returns equal to the underlying index’s performance, as opposed to an actively managed mutual fund that pays a professional to curate a fund’s holdings.

Best for: Index mutual funds are some of the best investments available for long-term savings goals. In addition to being more cost-effective due to lower fund management fees, index mutual funds are less volatile than actively managed funds that try to beat the market.

Index funds can be especially well-suited for young investors with a long timeline, who can allocate more of their portfolio toward higher-returning stock funds than more conservative investments, such as bonds. According to Fernandez, young investors who can emotionally weather the market’s ups and downs could even do well to invest their entire portfolio in stock funds in the early stages.

“If they have a 30-year time horizon — and won't even think of taking the money out for 30 years — then they definitely should consider starting their retirement funds with 100% stocks,” Fernandez says.

12. Dividend stocks

Dividend stocks can provide the fixed income of bonds as well as the growth of individual stocks and stock funds. Dividends are regular cash payments companies pay to shareholders and are often associated with stable, profitable companies. While share prices of some dividend stocks may not rise as high or quickly as growth-stage companies, they can be attractive to investors because of the dividends and stability they provide.

Best for Any investor, from first-timer to retiree, though there are specific types of dividend stocks that may be better depending on where you are in your investing journey.

Young investors, for example, may do well to look into dividend growers, which are companies with a strong track record of consecutively increasing their dividends. These companies may not have high yields currently, but if their dividend growth keeps up, they could in the future. Over a long enough time frame, this (combined with a dividend reinvestment plan) can lead to returns that mirror those of growth stocks that don’t pay dividends.

Older investors looking for more stability or fixed income could consider stocks that pay consistent dividends. On a shorter timeline, reinvesting these dividends may not be the goal; rather, taking the dividends as cash could be a part of a fixed-income investing plan.

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