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Yahoo
27-04-2025
- Business
- Yahoo
Don't Want To Invest In Stocks Right Now? Here Are 5 Good Alternatives
Have you checked your portfolio lately? On second thought, maybe hold off on taking a peek at the numbers. It's no surprise that with tariffs running wild on the economy, the stock market may be making some people nervous right now. While it might seem like stocks are the best and quickest way to earn some extra passive income, there are other methods for investing that you can check out until the roller-coaster ride of the global markets calms down. Read Next: Learn More: Here are some alternatives to invest in right now instead of stocks. According to Marcus Sturdivant Sr., advisor, managing member and chief compliance officer at The ABC Squared, the best-performing asset so far in 2025 is solid gold. 'In a turbulence-filled market, a flock to this haven has been undeniable. The asset is being added to central banks around the globe as they reduce their exposure to the U.S. dollar and debt system,' Sturdivant said. He said that all year, gold has been trading above its short-term moving average. However, he explained that if this trend breaks, it may show a downward trend in gold. If so, investors could consider taking profits from the record levels gold has hit recently. Find Out: Fixed annuities currently offer an attractive, guaranteed return between 4% and 6% for an extended period of time, according to PJ Doyle of Anchor Annuity, who said this type of investment isn't one you can find in the stock market. 'While indexed annuities do protect your principal, you're still left guessing with caps, participation rates and the multitude of indexes one has to pick from,' Doyle said. 'Fixed annuities can guarantee a growth over a fixed period. Indexed annuities can only guarantee you won't lose any of your principal.' In Sturdivant's view, in a market full of prospective buyers who have been waiting for guidance on the direction of rates, real estate is a smart choice at the moment. 'If consumers have not exhausted their savings, the housing market is in the spring season,' he said. James Francis of Paradigm Asset Management said that when it comes to real estate at the moment, it is all about the debt, not the equity. 'We aren't talking about flipping your property here. Real estate debt allows you access to real estate cash flow without the exposure to the fluctuating property values,' Francis said. 'These can be structured with downside protection, particularly in multifamily and senior housing where demand tends to remain stable.' Gary Zimmerman, CEO and founder of Max, shared that private credit 'is an emerging asset class, but one that's rapidly growing as private capital steps in to lend where banks can't or won't.' This type of investment could lead to higher yields, but be aware that there's more risk. 'Lending to YouTube content creators, subprime auto buyers or Mexican farmers can generate higher yields, albeit with higher risks and less liquidity than investment grade bonds,' Zimmerman said. When it comes to either money market or high-yield savings accounts, Sturdivant recommended investors seek out online accounts that do not require a deposit of physical cash, a process which he labeled as 'cumbersome.' 'The tradeoff for a lack of a physical building cost is usually higher returns and rates on high-yield accounts and CDs,' Sturdivant said. 'I would not suggest going all cash, but increasing cash and placing it in one of these accounts keeps it safe and earns some interest.' More From GOBankingRates 6 Used Luxury SUVs That Are a Good Investment for Retirees 7 Tax Loopholes the Rich Use To Pay Less and Build More Wealth 7 Overpriced Grocery Items Frugal People Should Quit Buying in 2025 How Much Money Is Needed To Be Considered Middle Class in Every State? Sources Marcus Sturdivant Sr., The ABC Squared PJ Doyle, Anchor Annuity James Francis, Paradigm Asset Management Gary Zimmerman, Max This article originally appeared on Don't Want To Invest In Stocks Right Now? Here Are 5 Good Alternatives Sign in to access your portfolio
Yahoo
01-03-2025
- Business
- Yahoo
5 Purchases That Will Help the Middle Class Build Wealth
If you're earning a middle class paycheck and actively trying to increase your wealth, you might find yourself stumped as to how to go about it. Learn More: Try This: While you may not grow your riches overnight, there are certain money moves you can make to help you reach your goals. Below are some of the top purchases that will help you build wealth if you're part of the middle class. According to James Francis, CEO of Paradigm Asset Management, one of the most valuable purchases middle-class families can make is financial education — whether through books, online courses or working with a financial coach. Understanding how to budget, invest and leverage tax advantages can create long-term financial security. 'Even a $200 investment in the right course can provide lifelong returns by teaching strategies to avoid debt, maximize retirement accounts and generate passive income,' Francis explained. Find Out: 'Owning real estate has always been a key path to wealth, but for many, the cost of homeownership is too high,' said Francis. 'Now, middle-class investors can buy into real estate through fractional ownership platforms like Fundrise or Roofstock, which allow them to invest in rental properties with as little as $100.' He said this offers access to property appreciation and passive income without the barriers of traditional real estate investing. Instead of just going with mutual funds that charge high fees, Francis said middle-class investors now have the option to buy direct indexing portfolios. This allows you to own a customized mix of stocks that follow an index, while also helping with tax savings and even aligning with your personal values. 'It's a strategy that used to be only for the ultra-wealthy, but now platforms like Wealthfront and Vanguard Personalized Indexing are making it way more accessible,' he said. 'One of the smartest investments isn't just in stocks or real estate — it's in yourself,' said Francis. He noted middle-class professionals can seriously level up their earning power with high-value certifications like PMP, coding bootcamps or even AI and cybersecurity training. 'These kinds of skills can lead to pretty big salary jumps — $10,000, sometimes even $50,000 more a year. And when you add that up over time, it can make a huge difference in building real wealth.' 'Getting the right tools, software or even just some basic inventory to kick off a side hustle can be a game-changer for building wealth,' Francis explained. Whether it's setting up a small online shop with Shopify, putting some money into a solid business course or just getting the right gear for a high-demand service, these kinds of small but smart purchases can open up extra income. 'And having that extra stream of cash can make a big difference instead of just depending on a paycheck,' Francis said. 'These are just a few smart purchases that can help middle-class families start building wealth over time.' More From GOBankingRates Here's the Minimum Salary Required To Be Considered Upper-Middle Class in 2025 The Money You Need To Save Monthly To Retire Comfortably in Every State 7 Tax Loopholes the Rich Use To Pay Less and Build More WealthThis article originally appeared on 5 Purchases That Will Help the Middle Class Build Wealth
Yahoo
06-02-2025
- Business
- Yahoo
7 Money Moves Upper-Middle-Class Families Should Make To Stay Ahead
Reaching upper middle class status is no easy feat; holding onto it, however, is another story. 'Let's face it: Keeping your finances in order isn't as easy as it used to be. Inflation, taxes, and rising costs are eating away at your hard-earned income,' said James Francis, CEO of Paradigm Asset Management. Learn More: Try This: 5 Subtly Genius Moves All Wealthy People Make With Their Money If you're an upper-middle-class family, you may not have a hard time, but staying ahead requires more than just a good salary. 'Over the years, I've seen what separates families that thrive from those that struggle,' Francis noted. Here are key financial steps the upper middle class can take to protect their financial future. According to Francis, taxes are one of the biggest expenses for high earners, and many people pay a lot. 'Start by maximizing tax-advantaged accounts like 401(k) [plans], [individual retirement accounts] IRAs and [health savings accounts] HSAs. If you invest, consider tax-loss harvesting, which means selling assets that are taxed to offset taxable gains,' he explained. 'And don't wait until tax season to strategize: Smart families make tax-advantaged investments all year long.' Check Out: 'Your 401(k) alone won't be enough,' said Francis. 'Inflation can erode savings if you don't diversify.' He advised that a solid investment portfolio includes: Stocks (U.S. and international) Bonds, especially those protected by inflation Alternative assets (real estate, private equity) 'Markets have changed and what worked a few years ago may not work today,' Francis warned. He recommended regularly reviewing your investments and adjusting as needed. It's easy to justify upgrading homes, cars and vacations when your income increases, but according to Francis, uncontrolled spending can sabotage your long-term security. 'Enjoy your success, but don't let every increase turn into a bigger mortgage or a luxury purchase,' he said. 'Families who stay ahead know when to call.' Most advice recommends putting away three to six months of expenses, but for middle-class families with mortgages and higher education, Francis recommended aiming for 12 months of high-yield savings. 'A larger cash cushion means you can weather layoffs, medical issues or market downturns without dipping into investments,' he noted. 'Health care isn't getting any cheaper, and employer coverage won't last forever,' Francis observed. In other words, if you are eligible for a health savings account (HSA), use it: It offers a triple tax advantage. 'And don't overlook long-term care insurance,' Francis warned. 'Many families drain their savings for unanticipated assisted living costs.' 'Your home is perhaps your greatest asset, but it is also a major expense,' said Francis. Instead of constantly improving your home, he said to consider the following: Paying off your mortgage early (if it makes financial sense). Investing in rental properties that generate income. Moving to a less expensive area when the time is right. A bigger house is not always the smartest decision — be intentional. 'One of the best financial decisions you can make? Teach your children how money works. Schools don't do it, so it's up to you,' Francis emphasized. 'Open them a deposit brokerage account. Tell them the power of compound interest. Let them make small financial mistakes now, so they don't make big ones later.' Making a lot of money is great, said Francis, but long-term success is based on smart money management. 'Strategic investing, tax planning, spending control, and financial literacy all play a role,' he noted. 'You don't need to improve your finances overnight; you just need to start somewhere. Small, regular changes today can make all the difference in the long run.' More From GOBankingRates3 Things You Must Do When Your Savings Reach $50,000 Find Your State: The Best Banks of 2025 For Each State 9 Things You Must Do To Grow Your Wealth in 2025 This article originally appeared on 7 Money Moves Upper-Middle-Class Families Should Make To Stay Ahead Sign in to access your portfolio
