Forbes recently published a list of the best investments for 2024. Writer Jeff Rose named eight “promising avenues” for investment, including dividend-paying stocks, real estate, and Bitcoin.
Rose acknowledged that 2023 was a shaky year for crypto, but noted Bitcoin’s all-time high in March of this year. Bitcoin has stayed above $60,000 since mid-September. Finance sites includingBloomberg, Yahoo Finance and Binance provide a Bitcoin price chart along with live prices for all the major crypto players.
So what were the reasons behind Forbes’ picks?
Bitcoin
Bitcoin’s valuation has improved dramatically since its introduction in 2009. It currently stands at over $72,000 and not far off its all-time high. Forbes recently reported, “Investors such as hedge fund billionaire Paul Tudor Jones have called on bitcoin as a hedge against inflation”. Some observers also believe US monetary policy may not be equipped to correct inflation. Institutions have invested billions of dollars into bitcoin after US regulators approved spot bitcoin exchange-traded funds in January.
Bitcoin recently had a halving event. Halving events are written into the source code by Bitcoin creator Satoshi Nakamoto, which mandates a gradual reduction in supply. Bitcoin’s eventual supply is capped at 21 million coins, and stands at 19.77m at the time of writing.
Halving events often influence Bitcoin’s price drops. But new EFTs and increased interest from institutions also make an impact. Bitcoin is more accepted by the mainstream than ever, and amid volatile markets, many observers view Bitcoin as a robust investment.
Health
Forbes made a slightly less traditional recommendation of investing in your health. Rose had a client whose friend sadly passed away shortly after retiring. This reminded him that “all the money in the world doesn’t matter if you’re neglecting your health.”
Physical and mental health both need caring for. Healthline lists several benefits of regular exercise: increased happiness, weight management, muscle and bone strength, better energy, reduced risk of chronic diseases, improved memory and sleep, reduced pain, and more.
A 2017 review entitled “The Effects of Acute Exercise on Mood, Cognition, Neurophysiology, and Neurochemical Pathways” looked at the changes in the minutes and hours following exercise. The authors showed that “the three most consistent cognitive/behavioral effects of a single bout of exercise in humans are improved executive functions, enhanced mood states, and decreased stress levels”.
Paying off debt
The average household debt in the US was recently reported to be over $104,000, with credit card debt standing at over $1 trillion.
Rose wrote that, “realizing that paying off debt is a guaranteed return on investment was a game-changer. It didn’t mean that I had to have all of my debt paid off before I started investing. I just made sure I had a solid debt payoff plan to chip away at it, paving the way for more higher returning investments.”
Dividend stocks
Forbes recommended dividend stocks to “mitigate the risk of market volatility.” It’s recommended that you don’t focus on how much you can invest, but how often. There are tools allowing you to automatically invest daily, weekly, or monthly in small amounts.
Banks
Banks offer measly savings rates, but Forbes quoted a CEO of an investment company who advised that money market accounts or CDs may offer “significantly higher interest rates.” Rose advised against keeping your money in “underperforming accounts.”
Real estate
Roughly two-thirds of wealthy Americans own a second home (often a vacation home or rental property). Rose highlighted the “tangible value” of real estate investments.
Real estate investment includes direct investing (owning physical properties), real estate investment trusts (REITs), which is where you invest in companies that own or finance properties, and house flipping (buying, renovating, then selling a property).
Real estate values can increase over time, and renting can generate income in the meantime. But real estate investments come with risks, including market fluctuations and maintenance costs. It can also be a demanding area of investment with the time required for property management and maintenance.
Personal growth
Another slightly abstract investment recommendation was personal growth. Forbes gave examples of gaining new degrees and certifications, and pursuing new knowledge and skills. These pursuits can open doors to new opportunities.
The Indeed guide on personal growth advised being receptive to new ideas and allowing “yourself to develop new ways of thinking”. Being receptive involves not making assumptions and assuming that something is too hard.
The guide also advised looking at challenges as opportunities to improve. New situations offer chances to try new things and network with other people.
The Berkeley Well-Being Institute advised identifying your objective (“what you want to change and how to change”). This somewhat contrasted with Indeed’s article that said, “Remember it’s okay not to have a specific goal”. The Institute also recommended meditating (to learn self-awareness), journaling, reading (for insight into human nature, knowledge, and inspiration), positive affirmations, and being curious.
Side hustles
Rose wrote that “fun activities” such as making YouTube videos can turn into side hustles. He advises people to explore these alternative activities over working overtime at their main jobs.
Many of the biggest YouTubers started their channels as a side gig before it became their main job. The popular music critic Anthony Fantano started The Needle Drop part-time in 2009, won an “On The Rise” contest in 2011, and now has over 2.93 million subscribers. His secondary channel, fantano, has 1.86 million subscribers.
Yahoo Finance reported on a Facebook post by the entrepreneur Robert Kiyosaki about side hustles.
Kiyosaki recommended offering online tutoring services (on subjects like business, languages, and computer sciences), transcription, selling goods online (Kiyosaki gave the example of a business making $15,000 selling masks during the pandemic), and becoming a virtual assistant.
