2017 Smart investment tips - How can you make your money grow?

You need to invest your money to see it growing. However, you may not be sure which investment is better for you. An investment strategy may have worked better in the past years, but it may not be the same this year - 2017.

Here are some investment tips for 2017, which you can go through to make your money grow and help you attain your short and long term financial goals.

1 Save more dollars

The key to preparing yourself for any uncertainties is to save as much as you can. Have a target to save 15% of your monthly paycheck. The stock and bond markets are expected to give comparatively lower returns in the coming 10 years than what you’ve experienced before. So, if you save more, you can make your financial future better.

2 Prepare for uncertainties

Several economic and political events happened in 2016, and you can expect more uncertainties in 2017. In 2016, the Brexit vote in the UK and the presidential election in USA were major events that will impact the economy in 2017. The new US administration will affect the investors in the coming days. Some policies will definitely be beneficial but some of them will result in market volatility. So, be prepared and make investments in 2017 with long term perspective.

3 Pay tax on your retirement savings

You should be knowing that money can be taxed only once. So, if you take advantage of the new, lower rates, you won’t have to pay taxes later, when the interest rates might be higher. If you pay taxes on the money you put into your Roth IRA now, you won’t have to pay taxes when you withdraw from your retirement account later.

4 Understand your existing portfolio first

If you have money for new investments in 2017, at first, understand your existing portfolio. According to Hans Scheil, the president of North Carolina-based Cardinal Retirement Planning, Inc., “If you have new money to invest, I suggest a quick review of the existing portfolio. Is it properly diversified? Are the investment positions meeting your expectations? Are the investments performing well relative to their risk and the markets? The answers to those questions will tell you if the new money should go into the same investments.”

5 Build a diversified portfolio

It is always better to build a diversified portfolio; but, maybe this is the right time if you haven’t done it in the past. Scheil says “...diversification unless you personally own and manage the one business you are investing in.”

6 A sleeping bear market is predicted

According to Katrina Lamb, head of investment strategy and research with MV Financial Group, investors should be aware of a sleeping bear market in the coming days. Most of the stocks will trade sideways; that is, neither gain nor lose price. She says that as long as there is a decent growth in the US economy and the status quo in Europe, China and Japan, remain the same, there won’t be a long-term bear market in the coming days.

7 Growth is predicted in some places in the housing market

According to FreddieMac Multifamily 2017 Outlook, the market will continue growing with moderate pace in these areas: Tacoma in washington, Colorado Springs in Colorado, Sacramento in California along with Portland and Seattle. With the rise in the construction costs, more developers are concentrating and will continue to build or remodel luxury multifamily units, mostly in urban downtowns.

8 Secure your data and assets

All the investors should take proper precautions to safeguard their data and assets. You should also be aware of the risks associated with your investments in 2017. If required, talk to a financial adviser about how you can secure your online accounts.

Above all, always stay informed about the market. It doesn’t mean that you’d have to react to each and every changes; in fact, you should resist yourself from reacting to each and every change. But, have sound knowledge about your investment plan and how they are changing with the different movements.

This way, your investments will give you better returns and you’ll be able to attain your financial goals in your desired period of time.