As we ring in the new year and welcome 2019, we can’t help but reflect on the financial highs and lows of the past year. 2018 brought with it a number of investment opportunities, some of which fared better than others. Here’s a look at the top investments of 2018 to help get you in the right mindset for exploring financial investment opportunities as the new year begins.
Certificates of Deposit (CDs)
If you’re getting ready to dip your toe into the financial investment pool for the first time, a short-term investment such as a CD, or certificate of deposit, is a great strategy to employ. A CD is offered by your credit union and allows depositors to invest their cash in an average time period of three to five years, though some CDs are even shorter, while others go up to 10 years. The average rate of returns for CDs as of November 2018 was between 0.5 and 3 percent, which is a pretty substantial gain for a low-risk, short-term investment. Just remember- the longer the investment, the higher the yield, so it may be wise to opt for a 5-year CD.
Treasury Inflation-Protected Securities (TIPS)
Another short-term investment option that carries relatively low risk, treasury inflation-protected securities, or TIPS, are ideal for people who wish to explore investment opportunities without the stakes being too high. TIPS are marketable securities that are indexed to inflation, meaning their underlying value is based on the Consumer Price Index (CPI). This means that once the TIPS matures, you are guaranteed either the original amount you invested or the adjusted amount- whichever is larger. Ultimately, by the end of the maturation period, your investment will be worth the original amount you paid plus the accrued interest. Since TIPS, like all treasury securities, are backed by government credit, you can be sure that there is relatively little risk in investing in them.
While people tend to think of investments like stocks and bonds, there are plenty of investment opportunities that are a little more outside the box. Local investment opportunities in small businesses, restaurants, and other privately-owned companies were everywhere in 2018. While investing in a local business is considerably more risky than the other investment opportunities on this list, it can also produce the highest return of all, provided the business thrives and makes money. Your credit union can help you invest in locally-owned businesses, including your own if you are looking for an investment opportunity that is more exciting and outside-the-box than standard financial investments.
No matter which route you choose to go with your 2019 investments, White River Credit Union is here to help! We work with Enumclaw investors at all levels to help build and strengthen their portfolios, protect their interests, and facilitate responsible investing for a bright financial future. Contact us today at (360)825-4833 to speak with one of our financial investment experts. Make it your New Year’s resolution to invest, so you can enjoy returns for years to come!