Top Investments for 2024
Written by
Martin Dasko
Edited by
Molly Sullivan
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Trying to decide where to invest your money can seem daunting with all the conflicting reports circulating about a possible recession and what’s next for the economy. As investors and analysts eagerly anticipate the monthly inflation reports, you may feel uncertain about your investment options in 2024. This is why we contacted the experts to gather the top investments for 2024.
What are the best investment options for 2024?
Consider Capping Out Your Retirement Accounts
An investment that always makes sense is securing your financial future so you don’t have to work well into your golden years.
“Look at your budget and see if you can make enough room to max out your retirement contributions fully,” said attorney and personal finance expert Erika Kullberg. “For 2024, the IRS allows you to make contributions of up to $23,000 in a 401(k) and $7,000 in either a Roth or traditional IRA (or a combination of both). If possible, try to max out your 401(k) and a Roth account.”
How do you decide which retirement account to cap out?
“If you have to choose between which one to max out, go for the 401(k) first if you get an employer match. It’s ideal to always contribute the most you need to in order to earn the highest possible employer match. If you don’t contribute enough to earn the max match, you’re essentially leaving some of your compensation on the table,” Kullberg said.
Take Advantage of High-Yield Savings Accounts
You need to have money in the bank if you want to make any investments. This is why you should get into the habit of paying yourself first in 2024.
“Paying yourself should be the most important investment you make each month,” said consumer and money-saving expert Andrea Woroch. “Earmark a portion of your take-home pay towards savings, specifically emergency savings and work your way up to at least three months of living expenses set aside in a separate account so it’s out of sight and out of mind. This fund will act as a cash cushion, giving you peace of mind while protecting your finances during tough economic times and when unexpected bills roll in.”
“Opening a high-yield online savings account is even better since your savings can earn some extra money each month to reach your goal faster,” Woroch said.
With interest rates up, you can land a respectable rate on a high-yield savings account where you let your funds earn interest as you decide on your next financial move.
Invest In the Stock Market
If you feel that you can handle the volatility of investing in the stock market, you can start building your portfolio in 2024.
“Stocks have historically provided strong returns over the long term,” said Taylor Kovar, CFP, who is the CEO of Kovar Wealth Management. “Investing in a diversified portfolio, possibly through index funds or ETFs, can help mitigate individual stock volatility. Focus on sectors expected to perform well based on economic forecasts, like technology, healthcare, or green energy.”
If you’re not interested in index funds, you also have other options, according to Kovar.
“Companies that pay regular dividends can provide a steady income stream and are often more stable. Focus on companies with a strong history of dividend payments.”
There are various ways that you can invest in the stock market. This is why you must take the time to conduct your due diligence.
Invest In a CD
It’s worth spending some time shopping around to see which account can offer you the highest interest rate on a CD.
“One of the main reasons that investing in a CD is so beneficial in 2024, at least right now, is that interest rates are on the higher side,” Kullberg said. “Right now, we’re seeing interest rates in the 4% to 6% range with many online banks.”
If you’re uncertain about investing in a CD, Kullberg has some additional insights.
“We can’t predict the future, but there is a lot of speculation that interest rates offered on CDs will drop this year. If you invest in a CD now, you can lock in those higher rates for as long as you feel comfortable. Doing so can make it possible to earn those high rates for years — sometimes five to seven years. Consider building a CD ladder if you want to take it to the next level.”
Real Estate
If you have the funds and feel that you’re ready for this investment, then you can make a move toward property in 2024.
“Real estate can be a good hedge against inflation and provides a tangible asset,” Kovar said. “The market may offer opportunities, especially in regions with strong growth potential. Real estate investment trusts (REITs) can be a more liquid way to invest in real estate.”
Invest In Yourself
This year could be the perfect opportunity to invest in yourself by returning to school or upgrading your skills to increase your future income.
“If one has low income and is struggling at the start of 2024, there will be little money to deploy into any investments, so instead, one should be focusing their money on personal growth and skill development,” said Sebastian Jania of Manitoba Property Buyers. “When one has the proper skills in place to make more money, then one can start to think about actually investing.”
Pay Down Debt
It might make the most financial sense for you to focus on paying down your debt in 2024 so that you later have the funds to invest in your future.
“Another great investment to make for 2024 is paying down debt,” Jania said. “With high-interest rates, debt is extremely expensive, and when one knows they can get over 20% return by paying down their credit card debt, it is guaranteed.”
Closing Thoughts
Providing a one-size-fits-all answer regarding the top investments is challenging because we all have different risk tolerance levels and capital. This is why you must also do your own research to find the best investment for your situation.
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