It’s fair to say that 2020 was a difficult year for everybody as life as we know it was turned upside down by the Covid-19 pandemic. We’re all hoping 2021 will represent a fresh start and a more enjoyable 12 months, although many countries are still grappling with the challenges of controlling the virus.
As uncertainty still abounds in these early weeks of a new year, it might be that you are looking for ways to carve out a more secure financial future for yourself. And investing your money wisely can help you to achieve that.
Whether you’re looking for steady returns or just want to keep your money safe to be able to provide for your loved ones further down the line, there are plenty of investment options you may wish to think about. Here are just three of them.
You may want to consider bond trading, where a borrower finances a project by issuing bonds that are purchased by investors. The issuer receives the money it requires through the sale of those bonds, and the investors receive a return by way of interest payments. That is until the bond matures, at which point the investors are repaid their money in full.
A common example of these is government bonds, such as the UK government’s plans to issue gilts to finance green investment later in 2021. These types of bonds attract investors because they offer steady returns at low risk, but the flip side is that the rates of return tend to be relatively low.
If trading in bonds doesn’t sound like an avenue you’d like to explore, you may decide to go down a more traditional route and put your money into savings. There are many different savings accounts to choose from, with several providers, so it’s important that you do your research and choose the one that’s right for you.
It might be that your current account provider can offer access to a high-interest account that will allow you to make a little extra every year. You may also want to think about opening one that can be accessed in the event of an emergency. Alternatively, you may decide on an account that prohibits withdrawals, to ensure your savings stay intact.
Another alternative is the housing market. Many people assume that investing in property requires plenty of capital in order to buy a home before either selling it for a profit or renting it out. But in fact, you can invest your money in funds that trade specifically in the property market.
Additionally, the current stamp duty holiday in England and Northern Ireland means that there is no land tax on the first £500,000 of a property’s sale price. This offers buyers the chance to make a significant saving on their initial outlay before deciding whether to rent or sell the property in the future.