Luis Pazos 
By the end of 2021, the S&P 500 surged 26.61%, and the Dow Jones grew by 18.65%. For both new and seasoned investors, it seemed like you couldn’t lose. Fast forward to 2024, and the landscape has shifted dramatically. With inflation at a 40-year high and market volatility rampant, investing feels riskier.
But don’t worry, there are still smart ways to invest for both the short-term and long-term. Many top investments of 2024 are designed to endure tough times and help grow your wealth regardless of market conditions. To help you choose where to put your money, we’ve analyzed the best investment strategies for 2024. Read on to see our top picks, who they’re best for, and how to get started.
Investment “Best for” Category and Timeline
- Crypto Savings Accounts: Best for Passive Income (Short-Term)
- High-Yield Savings Accounts: Best for Low Risk (Short-Term)
- Series I Savings Bonds: Short-Term Returns (Short-Term)
- Real Estate Investment Trusts (REITs): Best for Diversification (Long-Term)
- Stocks: Best for Building Wealth (Long-Term)
- Exchange-Traded Funds (ETFs): Best for Tax Benefits (Long-Term)
Whether you’re a new investor or experienced, these options can fit your needs depending on your goals and the time you plan to invest.
Crypto Savings Accounts: Best for Passive Income
Crypto savings accounts let you earn passive income from your crypto deposits, often with higher returns than traditional savings accounts. For example, Gemini Earn offers up to 8.05% APY, and Crypto.com offers up to 18.63% weekly returns, depending on the cryptocurrency.
High-Yield Savings Accounts: Best for Low Risk
If you want a safe short-term investment, high-yield savings accounts offer minimal risk. These accounts are FDIC-insured up to $250,000 per depositor, protecting your money even if the bank fails. Best of all, they often offer better returns than traditional savings accounts. For instance, as of January 2024, CIT Bank Savings Builder offers up to 4.95% APY with certain conditions, and UFB Direct offers 3.30% APY with no minimum investment.
Series I Savings Bonds: Best Short-Term Returns
With up to $10,000 to invest for at least a year, Series I Savings Bonds are a low-risk option. These bonds offer a mix of a fixed rate and an inflation-adjusted rate, providing a current return of 7.12%. They’re backed by the U.S. government and are tax-free at the state and local levels.
Real Estate Investment Trusts (REITs): Best for Diversification
REITs offer a way to invest in real estate without the hassle. They work like stocks, letting you invest money and earn returns from various real estate projects. REITs often focus on commercial properties and must return at least 90% of their income to investors as dividends. If you’re unsure where to start, platforms like Fundrise allow investments as low as $10.
Stocks: Best for Building Wealth
For long-term wealth building, stocks have historically provided strong returns, averaging around 7% annually. Starting is easy with online brokers and investment apps that often allow fractional share purchases. Basic strategies include investing in growth or dividend stocks. Growth stocks focus on long-term gains, while dividend stocks return substantial profits to shareholders.
Exchange-Traded Funds (ETFs): Best for Tax Benefits
ETFs offer a diversified investment portfolio by including a broad range of stocks and bonds, often tracking specific market indices. They are generally tax-efficient and have lower expense ratios than mutual funds. ETFs are easy to buy and sell, making them accessible whether you manage your portfolio yourself, use a robo-advisor, or work with a financial advisor.
Investing Guide
Investing means buying an asset at one price with the aim of selling it at a higher price. It could involve buying stocks to hold for years or flipping them in a shorter period. Another example is purchasing real estate to rent out, earning both property value appreciation and regular rental income. Short-term investments help protect against inflation and save for near-term goals like buying a home. Long-term investments are generally for retirement or generational wealth building, often involving more risk due to longer time horizons.
Choosing the Right Investments
Consider your financial goals, available resources, risk tolerance, and investment timeline. For short-term and safer investments, consider high-yield savings accounts and Series I Savings Bonds. For long-term wealth, look at stocks, ETFs, and real estate.
Risks of Investing
Investing involves risks like market volatility, economic conditions, liquidity risk, and opportunity cost. Understanding these can help you make educated decisions.
How We Found the Best Investments for 2024
We looked for investments that promise good returns or safety, are easy to access, and have a low barrier to entry. Our goal is to provide options that fit various needs and risk tolerances.
Summary of the Best Investments for 2024
- Crypto Savings Account: Best for Passive Income
- High-Yield Savings Account: Best for Low Risk
- Series I Savings Bond: Best for Short-Term Returns
- Real Estate Investment Trusts (REITs): Best for Diversification
- Stocks: Best for Building Long-Term Wealth
- Exchange-Traded Funds (ETFs): Best for Tax Benefits
Invest smartly to navigate and prosper in the uncertain financial climate of 2024. Each option has its benefits and risks, so diversify and tailor your investments to your needs and risk tolerance.
