Are you wondering what the best investments to make in 2023 are? You’re not alone. Every year, people scramble to figure out where they should put their money so that they can ensure the best return on investment. While there are no guarantees when it comes to investing, there are a few options that stand out as being particularly promising for 2023. So, if you’re looking to make the most of your money over the next year, read on for some tips, by William Schantz of Mid Atlantic Financial, LLC, on where to invest.
List of Best Investments For 2023
1. Index Funds
Index funds are a type of mutual fund that tracks a specific market index, such as the S&P 500 or Dow Jones Industrial Average. These funds offer investors exposure to a broad range of stocks without having to purchase each one individually.
Index funds tend to be very low-cost, making them an attractive option for long-term investors, says William Schantz. They also tend to be much more diversified than actively-managed funds, which can help to reduce risk.
2. Exchange-Traded Funds (ETFs)
Exchange-traded funds (ETFs) are not very different from index funds. This is so because they track a specific market index or group of assets. However, ETFs trade on stock exchanges, like individual stocks.
This means that ETFs can be bought and sold throughout the day, unlike mutual funds, which are only priced once per day. ETFs also tend to be very low-cost and offer investors broad diversification.
3. Real Estate Investment Trusts (REITs)
Real estate investment trusts (REITs) are a type of security that owns and operates income-producing real estate. REITs can own a variety of property types, such as office buildings, shopping centers, apartments, and warehouses.
REITs must pay out at least 90% of their taxable income to shareholders in the form of dividends. This makes them an attractive option for income-seeking investors.
REITs are also typically very diversified, according to William Schantz, which can help to reduce risk.
4. Corporate Bonds
Corporate bonds are debt securities issued by corporations. They typically have a term of five to 10 years and pay periodic interest payments, known as coupons.
At maturity, the bondholder receives the face value of the bond (the principal). Corporate bonds tend to be less risky than stocks but riskier than government bonds.
5. Municipal Bonds
Municipal bonds are debt securities issued by state and local governments. Like corporate bonds, they typically have a term of five to 10 years and pay periodic interest payments.
However, municipal bonds offer tax-exempt income, which means that the interest payments are not subject to federal income tax. Municipal bonds may also be exempt from state and local taxes, depending on the jurisdiction.
The Concluding Thoughts
The best investments to make in 2023 will be those that offer the highest potential returns with the lowest amount of risk. Some of these investment opportunities, according to William Schantz, include index funds, municipal bonds, corporate bonds, REITs, and ETFs. However, it is important to do your research before investing in any opportunity and to always consult with a financial advisor.