Is it time to give your finances a makeover? Whether you have accumulated a large sum of money or you have recently pulled yourself out of debt and you wish to manage your money better, it might be time to do a little inventory and establish some new goals for your wallet.
When you are trying to figure out the best path to improving your financial health, the world is truly your oyster. The financial industry – from the corporate titans to the small fintech outfits – has come up with a treasure trove of products and services to take care of your money.
To make your journey to financial wellness a little easier, we have compiled a list of the top financial products everyone should look into this year:
1. Wealth Management Apps
Do you have time to sit down with a cup of coffee and comb through your financials for a couple of hours? If not, you can automate this process by utilizing any one of the many wealth management Apps available today.
Online wealth management Apps are great because they monitor your spending, update you on your goals, offer personal finance tips, and even encourage you to better take care of your dollars and cents.
Plus, some Apps can even invest for you, with some even using your spare change!
So, what wealth management apps should you consider? Here are a few of the most popular ones:
- Acorns: This app takes your virtual change out of your account and invests the money.
- Mint.com: A budgeting website and app that gives you a detailed presentation of your budget, transactions, and analysis.
- Finch: This innovative hybrid checking and investing App, lets you instantly access your invested funds.
- Personal Capital: This app tracks your budget while also giving you insight about your investment accounts.
- Empower: This service integrates budgeting with accrued saving, setting weekly and monthly spending limits.
The attractive aspect of these Apps is that they are free to use!
2. All-in-One Checking and Investing Account
If you have a lot of funds sitting in your checking account, it is dead money. Many consumers will rely on their checking account as an emergency fund source or as a financial cushion. But aside from covering the necessary day-to-day and month-to-month bills, the money in your checking account serves no other purpose. And, since the dollars in this account are not earning interest, these funds are in fact losing value when you factor inflation.
So, what is the alternative? Perhaps an all-in-one checking and investing account is something to think about for your finances.
This account essentially blends your banking and investing needs into one convenient account, from buying that daily latte to paying your rent to investing in an index fund. And, perhaps the most appealing benefit of them all, is that it provides daily returns. Instant liquidity and regular growth: a savvy financial product for any beginner investor!
Are robo-advisors the go-to tool for investing in the future?
Robo-advisors are digital platforms that give users automated and algorithm-driven financial planning services with little to no human supervision. Everything robo-advisors do is based on the information from clients.
Robust financial planning, enhanced security features, and detailed portfolio management – these are some of the features of robo-advisors.
Could they replace conventional financial advisors? Consider this from Investopedia:
“With more than $250 billion currently under management in the U.S., various industry studies predict that the amount managed by robo-advisors will continue to grow at a torrid pace. At one point, many even predicted that robo services would drastically reduce or eliminate the need for traditional advisors.”
Some financial institutions are choosing to blend the human with the robot, providing the efficiency and convenience of a robo-advisor, with access to personalized service where needed.
4. Value Dividend Stocks
Interest rates are at all-time lows across the globe, encouraging consumers to dip their toes in the financial markets to receive more than a few cents on their savings. But what should investors even buy if they’re looking to reduce risk but maximize returns?
Although everything comes with risk, your best option might be value stocks that pay a dividend.
A dividend is a portion of the company’s profit that is paid to shareholders every month, quarter, or year. This strategy is beneficial for two reasons: you receive a capital gain from a higher share price, and you earn a regular income.
Here are some value dividend stocks that have not missed a dividend payment and have been steady in their yields:
- International Business Machines (IBM): 5.58% yield
- World Wrestling Entertainment (WWE): 0.99% yield
- Exxon Mobil Corporation (XOM): 2.20% yield
- Brookfield Infrastructure Partners (BIP): 3.81% yield
- Walmart (WMT): 1.45% yield
- Suncor Energy (SU): 3.44% yield
- Nutrien (NTR): 3.16% yield
After watching the multiple real estate shows on television, you have probably gotten the itch to participate in real estate investing, whether it is flipping properties or earning rental income.
While appealing on screen, in reality real estate is a hefty commitment, demanding time, energy, and considerable financial resources. Not to mention stress. If investing in real estate doesn’t fit into your current situation, there is an alternative: REITs.
A real estate investment trust, or REIT, is a company that owns and operates income-producing commercial, industrial, or residential real estate. REIT investors earn a monthly or quarterly dividend, without the headache of owning a physical property!
So, what are some REIT products you should look into in 2021? Here a handful to consider:
- Prologis (PLD): 2.45% yield
- Public Storage (PSA): 3.60% yield
- SBA Communications (SBAC): 0.71% yield
- Equinix (EQIX): 1.57% yield
- American Tower (AMT): 2.25% yield
The financial industry is known for its impressive number of financial products. You can find anything and everything for any purpose or goal. But knowing what to research and what to buy in 2021 – and beyond – can be a feat in and of itself. For more information on how to get your money to work harder for you this year, talk to someone you trust who prioritizes savvy financial management, or reach out to a financial expert who has experience in any of the products we’ve listed above.