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The Best Ways to Invest Your Money in 2021, According to the Experts – NextAdvisor

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Investing can be a great way to set yourself up with a retirement fund, down payment fund, or college tuition savings. The longer the time your money has to grow, the less you have to invest. 

It’s best to start investing as soon as possible – even today if you can. Start by making sure your high-interest debt is under control and you have an adequate emergency fund (cash you can access quickly if you lose your job or face an unexpected event). 

Historically, investments easily outpace inflation — even with the normal ups and downs of the market. You just have to know how to spread out your risk and choose the right methods to help your money grow.

We asked the experts, and here are the best investments to get your money growing today.

Why and When to Invest?

First, let’s first look at when you should start investing.

“Your money makes money over time when you invest. That’s how you accumulate wealth,” says Katharine Perry, certified financial planner and advisor at Fort Pitt Capital Group, an investment management firm in Pennsylvania.

Pro Tip

Before investing, it’s important to understand your risk tolerance, timeline, and which account to use. For many people, that could mean low-cost index funds in a Roth IRA account until retirement.

Make sure you have your emergency fund situated before you start investing. That way, you have access to cash should any problem arise. A good place to store an emergency fund is in a high-yield savings account

Once you’ve got some cash reserves and your high-interest debt is under control, there’s no time like the present to start investing.

“The old adage says it’s time in the market, not timing the market. Invest as soon as possible,” Perry says.   

Here are the best places to start. 

The Best Investments in 2021

Index Funds (ETFs or Mutual Funds)

Experts recommend low-cost, diversified index funds. These are funds with low expense ratios, or fees, that are great for all investors. An S&P 500 index fund is a great place to start. It  tracks the top 500 companies on the stock market. Index funds are a safer investment than trying to choose individual stocks because they broaden your investments over hundreds of companies. This process works well if you don’t have time or interest in picking individual stocks. Plus, over time this strategy tends to generate higher returns. 

There are several index funds to choose from, including those based on a specific industry, timeline, or sector of the market. You can buy an index fund that is an exchange-traded fund (ETF), which behaves like a traditional stock with market fluctuations throughout the day, or a mutual fund that closes at the end of the market day. Despite their small differences, either one could be a good choice. Just take note of the fees and investment minimums. EFTs tend to be an easier entry point for beginners due to lower costs and minimums.  

Other Types of Investment Strategies

As an investor, you may decide to add other types of investments to your portfolio. Types of securities you can add might be higher risk, but can compliment your index funds. Whatever other securities you decide to add, make sure you align them with your investment goals and do some research before to make sure you know what you’re investing in.

Small Cap Stocks

A small cap stock is one from a company with market capitalization under $2 billion. These stocks can be a way to invest in companies that are poised for long-term growth and fast gains. 

Adding small cap stocks to your portfolio through an index fund is a good way to incorporate small cap stocks to your investment strategy. A popular small cap index fund is the Russell 2000 index which tracks 2,000 small cap companies across a variety of industries. Of course, there’s no guarantee that a small company will survive, and initial performance isn’t a guarantee it will continue. 

Blue Chip Stocks

Blue chip stocks are shares of large, well-known companies that are household names – think Disney, Amazon, and Johnson & Johnson. These stocks are thought of as being reliable, safe, and able to weather economic downturns over the long-term. 

To identify blue chip stocks, take a look at the Dow Jones Industrial Average. Because they have a proven track record, having blue chip stocks can add stability and reliability to your portfolio. If you have an S&P 500 or total market index fund, chances are you have good exposure to these stocks already. A blue chip index fund or ETF is a good way to start investing in these. The SPDR Dow Jones Industrial Average ETF Trust is one of the most popular blue chip funds because of its low fees. You can also purchase shares directly through your brokerage. 

Real Estate and/or REITs

Buying a property often requires upfront costs like down payment and fees for closing, on top of any renovations you choose to make. There are also ongoing (and perhaps unexpected) costs, like maintenance, repairs, dealing with tenants, and vacancies if you decide to rent out the property. 

If homeownership isn’t for you, you can still invest in real estate through real estate investment trusts (REITs). REITs allow you to buy shares of a real estate portfolio with properties located across the country. They’re publicly traded and have the potential for high dividends and long-term gains. 

“REITs have done superbly well this year. They don’t usually do well with a pandemic, but surprisingly, they have,” says Luis Strohmeier, certified financial planner, partner, and advisor at Octavia Wealth Advisors. Part of the reason is you get access to properties, such as commercial real estate and multi-family apartment complexes, that could be out-of-reach for an individual investor.  

On the flip side, dividend payments earned through REITs are taxed as ordinary income instead of qualified dividends, which may cause you to have a higher tax bill if you invest through a taxable brokerage account. When you invest in a REIT, you’re also inherently trusting the management company to scout income-producing properties and manage them correctly. You don’t get a say in which properties the REIT chooses to purchase. But with that said, you don’t have to deal with tenants, repairs, or find a big down payment to start investing. And if you can invest through a tax-advantaged account, the dividends could grow tax-free. 

Where to Invest In 2021

Choosing what to invest in is one thing. You also have to choose what type of account to place your investments in. 

IRAs are recommended by financial experts because they help shield investors from taxes when saving for retirement or other long-term goals. There are a few different types of IRAs,  types of IRAs, also known as Individual Retirement Arrangements.

Roth IRA

A Roth IRA is a great savings vehicle for retirement. Whatever you put in, you can take out, and whatever money grows is tax-free when you take it out at 59 ½.  Each year, you can contribute $6,000 to your Roth if you’re under age 50 and $7,000 if you’re over 50, as long as your income doesn’t exceed $140,000 if you file single or $208,000 if filing jointly. 

It’s a particularly excellent strategy when you’re young or in a low tax bracket. You pay taxes on your contributions now, and then let them grow tax-free for as long as you can. “That’s a huge benefit, because you don’t have to pay tax on it again. That’s like free money,” says Perry.   

Traditional IRA

A traditional IRA allows you to claim a tax deduction on your contributions, but you’ll pay taxes when you withdraw at age 59 ½. It’s a good choice if you expect your future tax rate to be lower than it is now, or if you’d rather get a tax break now than in the future. 

Contribution limits are the same as a Roth IRA. 

SEP IRA

Simplified Employee Pension (SEP) IRAs are retirement accounts for small businesses or self-employed individuals. If you work for yourself or own a small business, it’s a way to put away savings for retirement, with higher limits than a traditional 401(k) or IRA. With a SEP IRA, you can contribute up to $58,000 per year. That could provide a big savings opportunity for small business owners. 

What to Consider Before Investing and Why Long Term Investing is Key

As you begin your investing journey, consider first where you’d like to hold your investments. That could be a taxable brokerage account, an employer’s 401(k), or a tax-advantaged IRA. If you want to invest in real estate, decide if physical properties or REITs match your investment style. 

Then, assess your risk tolerance and how long you want to invest. Keep in mind that, due to compound interest, investing long-term (10+ years) is the most assured way to grow your money. 

It’s perfectly fine to invest entirely in low-cost, diversified index funds. “Adequately diversified investments with a long track record of growth is the key to building wealth,” says Stohmeier. That way, you’re also able to withstand market dips while giving your cash the best chance to grow.

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Saudi Arabia to set up investment fund for carbon capture – Aljazeera.com

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The kingdom will also back a plan to feed hundreds of millions of people by providing clean cooking fuels, Crown Prince Mohammed bin Salman said in Riyadh on Monday at a forum attended by heads of state.

By Bloomberg

Saudi Arabia said Middle Eastern economies will be boosted by efforts to cut planet-warming gases and announced a fund to invest in carbon-capture technology.

“Climate change is an economic opportunity for individuals and the private sector,” Crown Prince Mohammed bin Salman said in Riyadh on Monday at a forum attended by several heads of state. Reducing emissions will “create jobs and strengthen innovation in the region.”

The kingdom will establish a fund to improve carbon sequestration and back a plan to feed hundreds of millions of people by providing them clean cooking fuels, Prince Mohammed said. The two initiatives will cost 39 billion riyals ($10.4 billion) and Saudi Arabia will contribute 15%.

The government will also open regional centers for early warning of storms, for sustainable fishing and for cloud seeding.

On Saturday, the prince pledged that Saudi Arabia would neutralize greenhouse gas emissions within its borders by 2060. It marked a seismic shift for the world’s biggest oil exporter, though officials included plenty of caveats and emphasized that Saudi Arabia and others would need to pump crude for decades to come.

The kingdom will try to develop facilities that capture and store carbon emissions as part of that commitment. The technology will be used for the production of blue hydrogen, a fuel made from converting natural gas and seen as crucial to the green-energy transition.

The net-zero goal “is a major step forward,” U.S. President Joe Biden’s climate envoy, John Kerry, said earlier on Monday. “It’s critical to have one of the world’s largest producers of fossil fuels step up at a moment when all countries, no matter their circumstances, need to come together.”

Other leaders at the Riyadh conference emphasized the need for governments to accelerate efforts to slow climate change.

“Just in the last two years we have seen fires in Siberia, in California, in the Mediterranean — unprecedented,” Pakistan’s Prime Minister Imran Khan said. “I hope that collectively we take this challenge much more seriously than we have done.”

Pakistan is stopping all coal projects and wants to make renewables 60% of its energy mix by 2030, he said.

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Is PayPal (PYPL) Still a Great Investment Choice? – Yahoo Finance

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Polen Capital, an investment management firm, published its “Polen Focus Growth” third quarter 2021 investor letter – a copy of which can be downloaded here. A quarterly gross return of 2.78% was delivered by the fund for the third quarter of 2021, outperforming both its Russell 1000 Growth benchmark that delivered a 1.16% return, and the S&P 500 Index that had a 0.59% gain for the same period. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Polen Capital, in its Q3 2021 investor letter, mentioned PayPal Holdings, Inc. (NASDAQ: PYPL) and discussed its stance on the firm. PayPal Holdings, Inc. is a San Jose, California-based financial technology company with a $293 billion market capitalization. PYPL delivered a 6.29% return since the beginning of the year, while its 12-month returns are up by 26.21%. The stock closed at $240.40 per share on October 22, 2021.

Here is what Polen Capital has to say about PayPal Holdings, Inc. in its Q3 2021 investor letter:

“Despite reporting solid earnings results, PayPal moved lower during the quarter. We believe the decline was primarily due to the company reporting near-term growth headwinds from the remainder of its eBay payment volumes, which have declined faster than expected. Our expectations included PayPal’s payment volumes from eBay declining rapidly, and much more importantly in our view, the fast-paced growth of the rest of PayPal’s payment volumes. This growth has been due to the increased adoption of its digital wallets (PayPal and Venmo) and checkout buttons. The shift to digital payments and e-commerce are significant tailwinds for PayPal. The pandemic further catalyzed these tailwinds, and we believe the move to digital payments is here to stay.”

Paypal PYPL Mastercard MA Visa

Paypal PYPL Mastercard MA Visa

www.BillionPhotos.com / Shutterstock.com

Based on our calculations, PayPal Holdings, Inc. (NASDAQ: PYPL) ranks 9th in our list of the 30 Most Popular Stocks Among Hedge Funds. PYPL was in 143 hedge fund portfolios at the end of the first half of 2021. PayPal Holdings, Inc. (NASDAQ: PYPL) delivered a -18.87% return in the past 3 months.

Hedge funds’ reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn’t keep up with the unhedged returns of the market indices. Our research has shown that hedge funds’ small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by 115 percentage points since March 2017 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter.

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. We go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage.

Disclosure: None. This article is originally published at Insider Monkey.

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Integration of Assets, Investment in Future Secure NGM's Status as Industry Leader – Barrick Gold Corporation

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Anchored by the massive Carlin and Cortez mines, NGM is building up the third Tier One asset, Turquoise Ridge, while Goldrush, a world-class project in its own right, heads up a long pipeline of quality prospects.

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Elko, Nevada – Nevada Gold Mines (NGM) is demonstrating the impact of operator and majority-owner Barrick’s strategy of combining the best people with the best assets to deliver the best returns, Barrick president and chief executive Mark Bristow said here today.

Speaking at an update for local media and community leaders, Bristow said NGM – the world’s largest gold mining complex – stood out from the rest of the industry not only because of its size but because its wealth of projects and prospects secure its future as a high-quality, long-life operation for decades to come.

“The combination of the Nevada assets of Barrick and Newmont has unlocked the vast geological potential of this mineral-rich region by consolidating mines, processing facilities and landholdings. Anchored by the massive Carlin and Cortez mines, NGM is building up the third Tier One1 asset, Turquoise Ridge, while Goldrush, a world-class project in its own right, heads up a long pipeline of quality prospects,” he said.

“NGM has also built strong relations across the full spectrum of the mines’ previously neglected stakeholders, and its wide-ranging support for educational and other community development initiatives is securing its social licence as a valuable partner with Nevada and its people.”

Bristow cited Turquoise Ridge as an example of the transformative effect of asset consolidation. The high-grade underground orebody at Turquoise Ridge, then a Barrick property, was mined for years without a full understanding of its geology and was also constrained by the lack of its own processing plant. At the same time, Newmont’s neighboring Twin Creeks was facing the decline of production from its open pits and its processing facilities had never been pushed to deliver. The ramp-up of underground production at Turquoise Ridge, based on a completely new geological model, will pick up speed when its third shaft is completed next year, more than offsetting the drop in production from the now-integrated Twin Creeks. The integration of the two assets has also delivered new exploration opportunities in the gap between the two.

During the past quarter, the Goldrush project’s official Notice of Intent was published, putting NGM well on the way to permitting its next major orebody. The updated feasibility study and the successful processing of the first ore samples has strengthened confidence that additional resources will be converted to reserves later this year.

NGM continued to optimize its portfolio through the South Arturo/Lone Tree asset swap, which removed a closure liability from its balance sheet while securing additional ounces and geological upside by bringing the other 40% of South Arturo under its control. In the meantime, brownfields exploration is confirming a significant upside through prospects such as a major deposit in North Leeville and the promising Phoenix gold and copper satellite.

Bristow said NGM was continuing to invest in infrastructure capable of supporting mining far into the future. This includes advancing data analysis capabilities and reducing greenhouse gas (GHG) emissions. An example of the latter is the second phase of the TS solar power facility which will increase its solar capacity to 200MW and is the cornerstone of NGM’s commitment to cutting GHG emissions by 20% by 2025.

Reviewing the past quarter, Bristow said improved run times at all of NGM’s major processing facilities had lifted NGM’s performance while the restoration of the Carlin mill operations had set it up for a strong end to the year.

Enquiries

Investor and Media Relations
Kathy du Plessis
+44 20 7557 7738
Email: [email protected]

Endnote 1

A Tier One Gold Asset is an asset with a reserve potential to deliver a minimum 10-year life, annual production of at least 500,000 ounces of gold and total cash costs per ounce over the mine life that are in the lower half of the industry cost curve.

Cautionary Statement on Forward-Looking Information

Certain information contained or incorporated by reference in this press release, including any information as to our strategy, projects, plans, or future financial or operating performance, constitutes “forward-looking statements”. All statements, other than statements of historical fact, are forward-looking statements. The words “potential”, “will”, “continue”, “prospects”, “securing”, “strategy” and similar expressions identify forward-looking statements. In particular, this press release contains forward-looking statements including, without limitation, with respect to: Barrick’s plans to unlock the geological potential of NGM and secure its future as a high-quality, long-life complex for decades to come; the expected benefits and timeline for completion of NGM’s growth projects including the Goldrush and Turquoise Ridge Third Shaft projects; the ramp-up of production at the Turquoise Ridge underground; NGM’s ability to convert resources into reserves; the anticipated benefits of the South Arturo asset swap and operational improvements at the Carlin mill; NGM’s exploration strategy and planned exploration activities; Barrick’s sustainability vision, including the expected environmental benefits from the TS solar power plant and NGM’s greenhouse gas emissions reduction target; and Barrick’s partnership with Nevada, local communities and other stakeholders.

Forward-looking statements are necessarily based upon a number of estimates and assumptions including material estimates and assumptions related to the factors set forth below that, while considered reasonable by Barrick Gold Corporation (the “Company”) as at the date of this press release in light of management’s experience and perception of current conditions and expected developments, are inherently subject to significant business, economic, and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements, and undue reliance should not be placed on such statements and information. Such factors include, but are not limited to: fluctuations in the spot and forward price of gold, copper, or certain other commodities (such as silver, diesel fuel, natural gas, and electricity); the speculative nature of mineral exploration and development; changes in mineral production performance, exploitation, and exploration successes; risks associated with projects in the early stages of evaluation, and for which additional engineering and other analysis is required; failure to comply with environmental and health and safety laws and regulations; timing of receipt of, or failure to comply with, necessary exploration permits and other permits approvals; uncertainty whether some or all of targeted investments and projects will meet the Company’s capital allocation objectives and internal hurdle rate; changes in national and local government legislation, taxation, controls or regulations and/or changes in the administration of laws, policies and practices, expropriation or nationalization of property and political or economic developments in the United States and other jurisdictions in which the Company or its affiliates do or may carry on business in the future; damage to the Company’s reputation due to the actual or perceived occurrence of any number of events, including negative publicity with respect to the Company’s handling of environmental matters or dealings with community groups, whether true or not; risks associated with artisanal and illegal mining; risks associated with new diseases, epidemics and pandemics, including the effects and potential effects of the global Covid-19 pandemic; litigation and legal and administrative proceedings; employee relations including loss of key employees; risk of loss due to acts of war, terrorism, sabotage and civil disturbances; increased costs and physical risks, including extreme weather events and resource shortages, related to climate change; and availability and increased costs associated with mining inputs and labor. In addition, there are risks and hazards associated with the business of mineral exploration, development, and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion, copper cathode or gold or copper concentrate losses (and the risk of inadequate insurance, or inability to obtain insurance, to cover these risks).

Many of these uncertainties and contingencies can affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, us. Readers are cautioned that forward-looking statements are not guarantees of future performance. All of the forward-looking statements made in this press release are qualified by these cautionary statements. Specific reference is made to the most recent Form 40-F/Annual Information Form on file with the SEC and Canadian provincial securities regulatory authorities for a more detailed discussion of some of the factors underlying forward-looking statements and the risks that may affect Barrick’s ability to achieve the expectations set forth in the forward-looking statements contained in this press release.

Barrick disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.

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