Top 7 Types Of Investments For 2022: Explained – Forbes


Key Takeaways

2022 is set up to be an interesting year. Inflation is running rampant, interest rate…….


Key Takeaways

  • 2022 is set up to be an interesting year. Inflation is running rampant, interest rates are set to rise and the stock market is still topsy-turvy. 
  • One of the best ways to navigate this financial maelstrom is through a risk-adjusted strategy of saving and investing. 
  • Some of the best types of investments for 2022 include high-yield savings accounts, government I-bonds and well-diversified ETFs. 
  • Investors who can afford more risk may also look into alternative investments like commodities and cryptocurrencies to boost their returns. 

Investing in the stock market is one of the best ways to grow your wealth. Typically, experts recommend a well-diversified investment portfolio that bundles safe and risky securities together. In the long run, such a portfolio can generate growth and better hedge against market and economic volatility. 

But already, 2022 has proven that it’s not a typical year. Inflation is on the rise. Bond yields are going up while CD rates remain abysmally low. And the Federal Reserve is debating up to three interest rate hikes this year to curb the runaway economy. All that to say: Knowing where to park your money right now isn’t easy. 

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That’s why we’ve rounded up the best type of investments for 2022 to help you protect your financial future. 

1. High-yield savings accounts

High-yield savings accounts keep your money liquid while generating a little return. Although they rarely keep pace with inflation, this is one of the best places to park cash you need to access quickly, such as your emergency fund. Plus, they’re as close to no-risk as you can get, as reputable accounts are FDIC-insured up to $250,000.  

Unfortunately, no high-yield savings account pays anywhere near the seven percent inflation we’ve seen in the past year. Most boast around 0.6% returns, compared to the national average of 0.06%. That said, with the Fed looking at hiking interest rates, many savings accounts may see their returns go up, too. There’s one caveat when it comes to variable-rate accounts, however. These offer a rate at opening that is subject to change.

2. Certificates of Deposit (CDs) 

If you don’t need to access your savings in a hurry and want to capture a little more growth, a CD may do the trick. These accounts are issued by banks at …….


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