Investing in yourself is a good investment than investing in a stock or a bond, according to a new report from Wealthfront.
The firm’s research, which examined investment returns for 1,200 companies, found that investing in yourself means you’ll have more money in the bank when you need it the most.
The results showed that investing your money in yourself has the greatest chance of working out better than investing the money in a portfolio of stocks or bonds, which are considered the “best investment”.
The report said investing your dollars in yourself should be the first priority when it comes to managing your finances.
“Investing is a long-term investment strategy that has to be made at a time when your current investments are declining,” said Rob Durning, senior vice president at Wealthfront, in a press release.
“You should not buy or hold stocks or bond funds in order to maximize your returns over the long term.
Investing should be your first priority.”
Investing in your finances can be a great way to build wealth, and can also provide a long term investment return.
The best investment for your finances?
Investing for yourself should take priority over investing your portfolio of securities, the report found.
The highest return on investments were for bonds, stocks and bonds, while the lowest returns were for stocks.
Investing your money can be risky, however, so it’s best to consider investing in your assets through an index fund or a mutual fund.
The highest return from an index or mutual fund was 4.9% on the year, compared to an 8.4% return from a typical portfolio.
Durning added that investing for yourself is the most effective way to maximize returns for your portfolio, because the money you put into yourself is yours to keep.
For more of Wealthfront’s investing advice, visit their blog.