When you’re dealing with building and managing your wealth, you want to make wise and informed decisions. Sometimes it can be hard to know how much risk is appropriate or whether or not certain money moves are right for you. However, investing your money in more than just simple savings accounts is an important part of building enough wealth to support your family long-term, protect against emergencies and retire well. Here are three smart investing moves to make with your portfolio.

  1. High-Yield Savings Accounts 

Finding a good high-yield savings account can be a great way to get just a little more out of the liquid savings you have set aside. This is a good idea especially for an emergency fund or long-term savings account of some kind or any savings you have set aside that are almost certainly going to be sitting for several years. While typical savings accounts return almost nothing (sometimes as little as 0.05% interest), high-yield savings accounts can return up to ten times that interest. Another similar investment option is called a “certificate of deposit” (or CD). CDs are similar, but they are structured so that you commit to investing your money in them for a certain period of time (five, ten or more years, for example) to receive a guaranteed rate of return. This is an especially great option for those who have a solid nest egg that they want to put to work while minimizing risk.

  1. ETFs and Mutual Funds 

Investing in exchange-traded funds (ETFs) or mutual funds is a great way to get exposure to specific market sectors of various kinds. Using ETFs and mutual funds can also help to bypass any potential minimum investment thresholds of other investments that are difficult for many individual investors to meet. For example, private equity firms such as Bernhard Capital Partners are professionally managed and have their own expert methods of choosing their investments, but for any individual to invest in such a firm (and thus reap the benefits of its investment decisions), it would take hundreds of thousands to millions of dollars. But investing in an ETF that tracks such private equity firms is as easy as taking a hundred bucks or more and dropping it into that ETF in your brokerage account of choice to let it grow. Of course, investing in ETFs and mutual funds still involve risk, but if you calculate well and do your research, it can be a great way to round out your portfolio.

  1. Online Real Estate Investment 

Another solid investing idea, especially for the long run, is to invest in real estate. But investing in real estate doesn’t have to mean buying a house or a property on your own. Online real estate investing is a viable way to give your portfolio exposure to the real estate market without overcommitting or going into massive debt in the process. Real estate has a long track record of growth over time.

Knowing your own risk tolerance (which is mostly determined by how close you are to retirement and how much volatility you can stomach) is an important factor in all investing, so you need to do the research required to make good investments. But these three ideas can help get you started toward a better financial future.

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