These are the top 7 best types of investments in 2023:


High-Yield Savings Accounts
Short-Term Certificates of Deposits
Short-Term Government Bonds Funds
S&P 500 Index Funds
Dividend Stock Funds
Real Estate & REITS

1. High Yield Savings Accounts

Investment Type: A high-yield savings account is a low-risk, short-term investment option that is ideal for investors who want easy access to their money.

Risk: High-yield savings accounts are considered safe because they are FDIC-insured, which means that you will not lose your initial deposit. However, there is a risk that inflation rates may be higher than the interest rates offered by the account, resulting in a loss of purchasing power.

Where to Get It: High-yield savings accounts are available through banks, credit unions, and online lenders. It is essential to compare rates to find the best option for your needs.

Benefits: High-yield savings accounts are a secure way to save money while earning interest. Online banks often offer higher interest rates, allowing you to earn more on your deposits. Transferring funds from a high-yield savings account to your primary bank account is easy, making it a flexible investment option.

Recommended Accounts: Marcus and SoFi are among our top picks for high-yield savings accounts.

2. Short-Term Certificates of Deposits

Best investments for: CD accounts are ideal for those who want to earn interest on their cash for a fixed term and don’t need access to their funds immediately. It is also a good option for retirees who want to earn interest on their savings.

Risk: CDs are generally considered safe investments. However, if interest rates drop after you purchase a CD, you may not earn as much interest as you would have if you had waited. Additionally, inflation can erode the purchasing power of your earnings.

Where to get it: CDs are offered by banks and credit unions.

A CD, or certificate of deposit, is a type of savings account that has a fixed term and a fixed interest rate. CDs typically offer higher interest rates than traditional savings accounts. There are short-term and long-term CD options available, but short-term CDs are generally recommended to protect against inflation.

When you open a CD, you deposit a certain amount of money for a specific period of time, such as six months or one year. The financial institution pays you interest on the money during that time. When the CD matures, you receive your original deposit plus the interest earned.

It’s important to note that CDs have penalties for early withdrawal. If you need to access your funds before the CD matures, you may have to pay a fee.

To find the best CD rates, it’s important to shop around and compare offerings from different banks and credit unions.

3. Short-Term Government Bonds Funds

Best investment for: Beginner investors looking for regular cash flow may find government bond funds to be a good investment option.

Risk: Government bond funds are generally considered safe investments as they are backed by the U.S. government. However, long-term bonds carry a higher interest rate risk than short-term bonds. It is also possible to lose money if inflation rates exceed the interest rates.

Where to get it: Online lenders offer government bond funds in the form of ETFs and mutual funds.

Government bond funds are mutual funds or ETFs that invest in debt securities issued by the U.S. government. They are considered low-risk investments, even if interest rates rise. These funds generate income through interest payments made on the underlying bonds. In addition, they offer diversification benefits as they invest in a wide range of government bonds with different maturities.

Investors can purchase government bond funds through online lenders. It is important to research and compare the fees and expenses associated with different funds before investing.

4. S&P 500 Index Funds

Best investments for: Beginner investors who want to dip their toes into the stock market with less risk would find the S&P 500 to be an excellent option. A recommended hold period is three to five years to see returns.

Risk: The S&P 500 is considered a low-risk investment due to its inclusion of the world’s largest and most prosperous companies. However, since it is a stock, there is still a risk of volatility, and the investment is not government-backed, leading to potential losses due to fluctuating rates. Nonetheless, historically, the S&P 500 has provided a positive return on investment.

Where to get it: ETFs and mutual funds that track the S&P 500 can be purchased through any brokerage account that offers those investment products.

The S&P 500 Index Fund is a stock market investment that presents more risk than traditional banking products, such as high-yield savings accounts and CDs.

The fund is based on the largest 500 American companies, including Amazon and Berkshire Hathaway. This investment option offers small-scale diversification among these companies.

With a 10% annual interest rate on even modest contributions, the S&P 500 presents an attractive investment opportunity.



5. Dividend Stock Funds

Introduction: For individuals looking for a source of income, dividend stocks can be a reliable investment option. This investment method appeals to both short-term and long-term investors. However, it is important to be aware of the associated risks and to diversify your dividend stock portfolio.

Body: Dividend stocks are an excellent investment opportunity for those seeking a steady source of income. These stocks represent a portion of a company’s profits that are distributed among shareholders quarterly. By investing in dividend stocks, you can earn a return on your investment over a long period of time, as well as receive short-term payouts in the form of dividends.

Despite their appeal, it is important to be cautious when investing in dividend stocks. Conducting research on a company’s history and reputation is crucial before making any investment decisions. Furthermore, diversifying your portfolio can help mitigate the risks associated with this type of investment.

Conclusion: Dividend stocks are an attractive option for those seeking a reliable source of income. To invest in these stocks, simply open a brokerage account that sells ETFs and mutual funds in the stock market. However, it is important to be aware of the associated risks and to diversify your portfolio to ensure a safe and profitable investment.

6. Real Estate & REITs

Real estate is a great investment option for long-term investors with significant lump sums for down payments and related costs. One alternative is to invest in REITs, which function similarly but without the initial expenses. Rather than owning the entire property, investors in REITs own a portion of the real estate.

However, investing in real estate carries significant risks. The housing market and related items, such as appliances and roofing, can be affected by inflation rates.

To invest in real estate, individuals must work with a real estate broker. On the other hand, REITs can be obtained through various platforms or a brokerage account with publicly traded REITs.

For individuals who already own homes, investing in income properties, flips, and REITs can be beneficial. REITs, in particular, are an attractive option because they enable investors to invest in a pool of properties managed by someone else.

7. Cryptocurrency

Cryptocurrency is a high-risk investment option that is better suited for investors who have funds to spare. It is not recommended for those seeking a safer investment route, as it is unregulated and highly volatile.

Cryptocurrency is a digital currency that enables online transactions. In recent years, it has gained significant attention and investments, particularly Bitcoin, which set the standard for other cryptocurrencies. However, the extreme volatility of cryptocurrencies means that while they can generate significant profits, investors may lose them just as quickly.

Cryptocurrency can be obtained through cryptocurrency exchanges such as Gemini and Coinbase, as well as brokerage platforms that offer certain cryptocurrencies.

As demonstrated this year, the value of cryptocurrencies can plummet, leaving investors with nothing. Therefore, it is crucial to consider the risks involved before investing in cryptocurrency.