Are you running out of options for income? Here are some investment options to consider to grow your money.
Options for Income | Where to Invest Your Money to Grow Your Wealth
Interest Rates Are Falling
I’ve got some bad news and some good news for you today. The bad news is interest rates in the U.S. are falling.
So, if you’ve been a careful saver, setting aside cash to use for retirement, you’re earning next to nothing on that cash.
I know, interest rates have been low for years. But, instead of slowly moving higher in this low-interest economy, we’re heading back into an environment where rates decrease.
So, don’t expect to earn a better rate when your next CD matures.
Options for Income You Should Know
Don’t worry. I’ve got some good news, too!
Because today, there are alternative opportunities to earn income from that cash you’ve set aside.
These options for income don’t just pay you more money. They also give you a chance to grow your wealth while still collecting regular checks to pay for your day-to-day expenses!
It’s no secret that banks are paying next to nothing on your savings. Just look at the pathetic returns I pulled from Bankrate this week!
With so much uncertainty due to the trade war escalation, we’re very likely to see the Fed cut its target interest rate later this year. That means savings rates for your hard-earned money will drop even further.
Thankfully, the stock market gives us some excellent opportunities to earn more in income. Thanks to recent pullbacks, you’re getting more value when you buy shares today, and you’ve also got higher potential to grow your wealth as stock prices eventually rebound.
So today, rather than sock your savings away in an account with an insultingly low rate, consider these areas for locking in reliable passive income payments.
Utilities Provide Stability, Income, and Growth!
One of my favorite options for income right now is the utility sector. This area of the market is home to some of the most reliable businesses in the country, which is a great addition to your portfolio.
It makes sense when you think about it. During tough times, individuals and businesses may fall behind on some of their bills.
But, utilities like electric and water bills are typically some of the last payments to be skipped. This means utility companies make consistent profits — and that’s true in strong economic periods as well as periods of weakness.
Since these companies generate steady, reliable cash flow, they typically have plenty of cash to pay investors. That’s why dividend stocks are known for paying lucrative dividends that give you way more than a savings account pays.
In fact, the Utilities Select Sector fund (XLU) — a fund made up of the largest utility stocks — pays an annual dividend yield of 3.1%. It would take you several years to make that return from a traditional bank savings account!
So, if you’re looking for better income from your savings, investing in an assortment of dividend stocks can pay you very well making them a great alternative income. But, it gets even better because today’s market is giving dividend investors a big opportunity to grow their wealth and investment on top of the income they receive.
The Allure of Income as Interest Rates Fall
As the Fed prepares to cut interest rates again, investors just like you and me are scrambling to find better opportunities to grow income. These investors will naturally be drawn to the safety and the fat dividend checks that come with owning utility stocks.
So, over the next few quarters, as the Fed follows through on cutting rates, we should see more people buying shares of these stocks. All of that buying will drive prices for these stocks higher.
We’re early to the game. This means if you invest in these stocks today, you stand to profit and get continuous cash flow as utility stocks trade higher.
Plus, this approach to the market gives you a lot more stability and risk control, which is especially important as our market becomes more volatile.
With these options for income I suggested, you, as an investor, will have great alternatives to choose from that can secure continued growth on your wealth. Just make sure to think and plan properly on how you should invest so you can secure high possibilities of good returns in generating income for retirement.
Here’s to living a rich retirement and safe financial securities!
What other options for income can you suggest? Share them in the comments section below!
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