6 Ways to Invest Your Money in 2016

By Patrick Vernon –

An investor that rests on their laurels is unlikely to succeed. The way to get the best return is to invest in a broad portfolio – and regularly review your success and investigate new opportunities.

So, as we start to look ahead to 2016, what investments should you be planning to make in the coming months?

Gold: It’s now easier than ever to invest in gold – that most traditional and enduring precious metal. The Royal Mint is now selling 1kg iPhone 5 sized gold bars directly to investors. These bars – which sell for about £25,000 each – can be stored by the Mint at its vault in Wales. Gold holds its value well and, with inflation predicted for 2016, is an excellent hedge against its impact.  Keep in mind though, that secure storage costs money, and these costs combined with inflation can wipe out your gains. Instead of investing in physical metal you can try to capitalize on gold and other commodities trading with a trusted online broker.

Property: The price of property continues to defy expectations and grow apace. Many experts believe 2016 might be the time when the UK market starts to cool and, although that’s far from certain, there are plenty of sound reasons to cast your eye overseas. The FT’s Property Listings pages are full of sound housing investments in the US, for example. Locations far and wide – from Florida to Seattle – are on the rise with potential for good growth.

Clear debts: It’s always a good idea to clear your debts, of course, but you should also see this as a sound investment. Credit cards are likely to attract the sort of interest you’d struggle to make on your investments, don’t waste any money servicing this. Clear the decks ahead of 2016 so that you can divert your capital into more productive methods.

ISA: Whether it’s a stocks and shares ISA or a simple Cash ISA, why waste an opportunity to put aside £15,420 tax free? From April 2016, the first £1,000 of any interest earned on standard savings and current accounts will be tax-free but for higher rate taxpayers it will still make sense to use the ISA to shield savings from tax.

Mutual fund: These are actually a great way of tapping into professionally managed portfolios of bonds, equities and other securities and you’re putting your money and trust in the hands of a seasoned money manager. Many can now show a strong track record – with a five-year average return of 15%-plus – making them worth investing in in 2016.

Shares: Low growth and low inflation might be the order of the day for our continental neighbours, but shares in Europe could soar by as much as 70% by the end of 2016, according to Citigroup. The signs are already there that Europe’s stocks are rising, with the Stoxx 600 index up nearly 15% so far this year.

Think variety, clear your debts, invest in gold, US property, European shares and strong performing mutuals, while making sure your savings perform as well as they can to have a strong 2016. Be flexible too. There’s still a couple of months to go and much can change – be prepared to react to events by keeping up with the latest news from the markets.