Dear Happy Investor, a new year, and therefore new opportunities to invest, right? Not really if you ask me 😉 . Investing is an ongoing process that will continue even in 2021. The best investments often need some time to build up (compound interest effect). This is especially true with investing in stocks, where 2021 and hopefully 2022 is going to bring nice returns. Anyway, you may want new ideas for best investments, or you may want to start as a beginner. Both are great, because investing money is the best path to financial freedom!
This article is about what you can invest in the best way in 2021, I have 8 strong tips for high or stable returns for you. They are in random order, except number 1.
The last update of this article is June 7, 2021. Have fun!
- The very best investment in 2021: that's you
- Investing in Equities 2021: Value & Dividend
- Investing in Index Funds and/or ETFs
- Best investment in real estate funds: Synvest and Corum Investment
- Return on private loans
- Invest in a plan of action for saving money (and then reinvest that money)
- Investing in your own business
- The best investment is in social relationships
Yes, yes, it's an open door… But still, I must mention (from myself) that you are the very best investment. Especially for novice investors, this is important to realize. Investing is all about achieving a higher outcome in the future. After all, you are sacrificing something today such as time, money or energy, with the expectation that you will get more in return tomorrow.
If you really want to become successful, you will have to keep working on yourself.
This starts with your health. How will you run the marathon if you are not fit? Good health is crucial to your vitality and your day-to-day energy. If you want to compete with the best and be truly successful, then your health will need to be a priority. Think about a healthy diet, enough exercise and especially a strong mental mindset.
Mindset is crucial for personal development. Think of characteristics such as a winner's mentality, focus, self-discipline, being eager to learn, daring to make yourself vulnerable, trusting others, et cetera. Take away the illusion that you simply do not have some of these characteristics. Like “it's not given to me”. What. A. Bullshit. Of course, it's not given to you, character has to be built. And believe me, thanks to the miracle of brain plasticity, you can learn anything you want. And at really any age. But be critical of yourself, stop with excuses, and start with willpower.
Update June 2021: read the book Atomic Habits and make sure your habits and environment are aligned with your goals. Make your habits work for you so you literally need less willpower.
In addition to character, you will also fuel that internal drive to always seek more knowledge. Knowledge development is fundamental to success, both in investing and in life. Focus on one or at most two subject areas at a time when learning. Read lots of books, and take specific, short courses that are relevant to achieving your goals and that are in your strengths.
Happy Investors Recommendation: Higher Return and Lower Risk? Tip: Asymmetrical Investing!
What if you could get higher stock returns while having less risk. Sounds too good to be true? It's not if you know how to start with asymmetric investing. These are investments where the potential gain is greater than the potential loss. The only way for asymmetric investing is if you have a lot of knowledge and experience. This is for advanced professionals and is also used in the largest mutual funds with a minimum deposit of millions.
I'm not an expert in asymmetric investing, but I do know a very good party named Capitalist Exploits which I highly recommend. I've joined their Membership one year ago and it brings a lot of value for unique investment opportunities with commodities. I'm talking about +300% gains on Uranium, Copper, Agriculture, and 60+ buying opportunities. The Membership brought me a significant return on investment! These are true professionals. In addition, they also have a free newsletter where they share masterful tips and research on asymmetric investing with us once a week.
Want more information? read my full Capitalist Exploits Review and Experiences
If you often read my articles about making money, you know by now that I am fanatical about investing in stocks. I dare to take some risk by investing in individual stocks. That's not what I advise you to do, because it gives serious risk. It is not for beginners!
Yet I do it myself, using my background (organization & strategy) to analyze companies within their industry. Then I look not only at their annual balance sheet but also at the organization, the product, the competitive position, the profitability, and the long-term strategy. Just a personal tip: precisely because I am knowledgeable here, this forms a pitfall where I am more inclined to invest in individual stocks. Something that can lead to very high returns, but also to very large losses. In any case, it does keep things exciting 😉 .
Update 2021: at the time of writing, I had issued the stock tips Nvidia and Zscaler in this article. As of this writing, both stocks have risen by +100%. However, at this time, it is not wise to get into these same stocks. Thus, currently the money seems to be mostly a movement towards Value Investing. This means Value stocks and also dividend stocks.
Dividend investing is and remains one of the best strategies for achieving financial freedom over the long term. Read more about dividend investing strategies here.
Another update is that last year I started the HIM community. Here you will find more than 70+ hours of training material for successful long-term investing. I also provide personal coaching and you will find new monthly updates on unique stocks that can potentially generate high returns.
Currently, the community is only available in Dutch
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Above, I cited it earlier. I believe that it is better to invest in investments with a relatively stable return at a relatively lower risk. If you take a lot of risk, you can make a lot of extra money but also lose a lot of money.
One of the golden rules in investing for those who want less risk is diversification. Spreading your investments brings down the risk. So don't merely invest in stocks, but also invest in real estate and P2P Lending will give you a more stable return. And also within these asset classes, you can do a lot of spreading.
As for stocks, you can easily diversify by investing in Index Funds and ETFs. For example, the S&P 500 is a basket of the 500 largest U.S. companies. In it are big companies like McDonalds, Bank of America, but also Nvidia which I mentioned above. Well-known investors like Warren Buffet give the same advice to beginning investors to invest your money in the S&P 500. Because provided you're not working full-time on individual stocks, all you have is more risk. With an index fund or ETF, you are spared this problem. You can read all about this in this comprehensive article on ETF investing.
In addition to the S&P 500, you have other ETFs. Some are more secure because they own more stocks. Take VWRL investing as an example. In that ETF, there are more than 3,500 different companies. And that's all over the world! And so you have many other low-risk ETFs.
Let Money Work for You! Starting on the best investment platforms is half the battle
Are you still working hard for your money? Why don't you consider letting the money work for you! Create passive income and attain financial freedom. Starting on the best investment platforms is half the battle. Do you want to know what the very best investment platforms are? Then click on the blue link to compare the best investment platforms now. Here you can read my independent comparison of the best online brokers for stocks, crypto, and P2P. Save money and choose the best investment platform!
The next tip is the best investment for real estate funds. Getting rich with real estate is very interesting. One form of this is the real estate fund. Precisely these funds have the advantage that you can get in from a very small amount (for example, 100 euros per month). This makes it a very interesting investment for novice investors who do not have much equity. Here in particular there is a best choice among real estate funds, namely Synvest.
Real estate fund Synvest has been voted the Cashcow Award Winner for best real estate fund investment (in the Netherlands) for years in a row. Not only because they have a very interesting return. For example, from 2011 until now they have realized an average return of 8.3%, with a monthly advance dividend of 6.2%. But above all the investment tactics that this investment company maintains are very interesting. For example, Synvest invests exclusively in real estate for supermarkets and discount stores such as Action. They do this in smaller towns located around the major cities, and that in Germany. Germany is a real rental country for supermarkets and discount stores, with long-term leases of 10 to 15 years not uncommon. Moreover, supermarkets and discount stores are resistant to economic crises. It is precisely when the economy is doing badly that their sales increase.
Another very good real estate fund that invests in the rental country of Germany is Exporo. Exporo has a rather unique investment tactic that has made them start investing very accessible. Exporo's tactic is by having their investors invest in very large properties with rental apartments. What is unique about this is that these properties have a very high rental occupancy rate of above 95%. This means that the fixed costs of the property are amply covered. As a result, you run relatively little risk as an investor.
A relatively new investment concept has emerged thanks to the Internet and is called P2P Lending. This stands for Peer-2-Peer, or in Dutch Particulier-2-Particulier. Nowadays there are some reliable platforms where you can invest money in private loans. These are people all over the world, who need money and pay interest in return. This is nothing new and has been happening for decades, only then it is the banks and microfinance that lend the money. With P2P Lending, it is individuals who lend their money to other individuals, and in return you get a seriously high return of 9 to 16%. Click here if you want to learn more about investing in P2P Lending.
When I first came across investing in private loans, I did have some question marks. Lending your money to someone in Poland or Denmark (where most of the “borrowers” are), does not sound very safe. But then again, skepticism often prevails when it comes to new investment concepts. And that is a good thing, because as an investor I am looking for stable returns rather than very high returns with high risk. After all, to become rich is easy provided you have patience (something that is difficult for me, by the way 😉 ). Fortunately, the existing P2P platforms have evolved positively over the years to bring the riskiness in P2P Lending to a low level. Note: for everything in this article though, you are always at risk when investing, you can lose your stake so only invest with money you can afford to lose.
Update 2021: I recently invested 10,000 euros (<10% of my assets) through Mintos.
Maybe this isn't a tip you're looking for when you land on an article about the best investments in 2021. But investments don't have to be all about money. The very beauty of this tip is that it doesn't cost you any money. You just have to invest some time, which can save you thousands of dollars a year. Isn't that worth it? Moreover, you can reinvest this extra capital in any of the investment tips above 😉 .
Achieving financial independence is done by earning more money on the one hand and keeping your costs down on the other. The difference between these gives you savings, and these savings should be invested for returns. My advice here is to focus as much as possible on making money. This is not only the more fun activity of the two, but also gives the best results. After all, there is no limit to how much money you can make. When it comes to saving money, there is a limit; you can't reduce your fixed expenses indefinitely. Yet it can be quite rewarding to invest some time in a plan of action for saving money. Saving money is very interesting for freeing up extra money in the short term. Money that you can invest again.
Making a plan of action is fairly simple (via the link above you can read it in detail). Look at your total budgeting of fixed monthly expenses. Select the top 5 largest fixed costs, and try to save as much as possible. This can often be done in one day, and usually saves you several thousand euros per year. To give you some more inspiration, you can read one of my knowledge articles on saving money:
Investing money is done to get a return. Ultimately you want that to either get richer or never want to work again. Often when you think of the best investment, you immediately think of investing. Either in stocks or in some other type of investment. But if you look at the goal of getting richer, why wouldn't investing in your own business be an option. If you ask me, it could be one of the best investments in 2021. Because having your own business can not only bring very high returns, but it is also very good for your personal development and more enjoyment of life.
Thus one of my tips for getting rich while employed to start your own business in addition to your full-time job. It has unprecedented benefits. Personal benefits that are far more important than the extra money it will make.
If you are going to invest, then a return between 5-15% can be expected. Whereby above 10% is already quite high. But now suppose you have your own business, for example a webshop. You buy 1000 euros worth of products. If you can sell these products within a year for a net 1500 euros, then at the end of the year you will have 1500 euros in your bank account. On 1000 euros, this is a return of 50% in just one year. Sick, right? When starting a business you will have to struggle the first few years, but if you apply a good earnings model in the right industry you can soon achieve high returns. And more importantly: much more passion and fun! A webshop is no longer a good example in 2021. Instead, it's better to start one of these ideas for making money online (in 2021).
The final best investment is in relationships. Networking is important for your career and is definitely part of it. But by social relationships, I mean the private environment. Know what it is. If you have a little patience and willpower and are willing to work on yourself (see tip #1), then making a career and becoming rich is really not that hard. It's more a matter of time. But why do you want to make a career and/or why do you want to become rich? 9 times out of 10 it's to become happier, right? What other end goal in life is there than to be happy? (Challenge me in a comment below, it's fun and educational). Paradoxically, scientific research on happiness shows that as humans, we don't become happier as a result of a mega-successful career or huge mountains of money. We become happier through meaningful social relationships.
At all times, therefore, one of the best investments you can make is in meaningful social relationships. Fortunately, these are quick to find, because the people who really matter are (usually) close by. I'm talking about your best friends, your family (sometimes then), and especially your partner and children. Investing time in volunteer work can also lead to more passion, happiness, and meaning.
I know by experience that the above is not always easy. My personal goal of achieving financial freedom (the raison d'être of this website) does sometimes really conflict with investing time in my social relationships. Therefore, I have set a clear finish line, with some guidelines where I put my relationship, family and friendship at number one. The end line is being able to retire at 40. I am now 28, with a net income of about 3800 euros. I could start working part time as early as next year. Possibly 4, maybe even 3 days. After all, I earn enough to be able to afford it. Because in addition to my income from employment, I also have income from my own businesses and income from my investments (passive income). And even then, I still have enough money left over each month to invest in my investments and passive income ideas. This is my success formula for structurally generating more income.
I'm not saying all this to brag. After all, there isn't that much to brag about yet. But I am on the right track, and I want to help you get on the right track too. This starts with yourself. Investing in yourself is really the best investment of all. Right after that is investing in social relationships, but this is also intertwined. In addition, I would really advise you to invest (and save) as much money as possible. Use the investing tips above. At least that's what I've had experience with myself and know that they produce positive returns. And once you're on the road to financial freedom, you can trade money for time. Because time is the most precious thing of all, and you can use it for further personal development as well as the development of your social relationships.
What do you think about this? Let me know in a comment below. I would also love it if you would share this article with your friends who could use it, and you can follow me via the newsletter.