Before you start investing for your retirement, it’s essential to be mindful of your tax plan and what it entails for the investments you are allowed to make and the growth potential. If your current plan does not allow some of the best retirement investments in 2022, consider switching to a self-directed investment account.
Also, using retirement funds for investments should not be confused with regular brokerage accounts, as the latter doesn’t offer tax-deferred or tax-free advantages. Of course, it’s always an option to open up a traditional brokerage, depending on your age, goals, and investment strategy.
Regardless of which route you want to take, here are some of the best retirement investments in 2022:
Dividend-Paying Stocks
Look for stocks that pay dividends, as they can offer a fair amount of stability during tumultuous times for equities. Of course, there is still risk involved, but there is an option to earn some money regardless of whether the stock price rises. Just be careful with the high dividend offerings. The companies could just be doing that to attract new investors and might not have enough money to deliver.
Cosmetics/Beauty Care
Whether it’s individual stocks or mutual funds, cosmetics, beauty products, personal care, etc., these are among the best retirement investments in 2022 – at least for the short term. COVID forced the whole world into quarantine for two years. Many events such as parties, reunions, and weddings were postponed during that time. Everybody is finally getting back out again, and everyone wants to look their best.
REITs
Real estate investment trusts offer a great way to invest in real estate without having to buy an entire property outright. Instead, they give investors a chance to own some shares in various real estate-focused funds. Each REIT focuses on a particular real estate sector, whether it is farmland, grocery stores, beach resorts, apartments in urban areas, etc. Just make sure your retirement account type allows for REITs.
US Treasury or Municipal Bonds
Depending on where you live, you might or might not be comfortable with municipal bonds, which are debt securities issued by your local and state governments. On the other hand, some people don’t trust the federal government. Still, Bonds are generally considered a low-risk investment and can be added directly to a 401(k) or other IRA account or purchased through a brokerage account.
Cryptocurrency
There is never any 100% certainty when it comes to the future of any currency, whether it’s paper money or entirely digital. If you’re going with some traditional investments, you might also look into cryptocurrency. Many financial experts recommend having at least some exposure to digital assets. For the time being, some gurus recommend that anywhere from 1% – 10% of a portfolio should be exposed to digital currencies in some capacity.
Learn more about your options regarding the best retirement investments in 2022 through Rocket Dollar. You’ll find self-directed account assistance and plenty of valuable tools and resources for getting started there.