It can be hard to know how to invest your money in this day and age. There are so many options from savings accounts to ETFs to classic ASX stocks.
So if you’re sitting there with some extra cash to invest, here’s a few top ideas of how to make your money work harder for you in 2020.
How to invest your money in 2020
1. Buy and hold some ASX dividend stocks
A good blue-chip ASX dividend stock or two can be a great way to invest your money
Two top dividend stocks that I like at the moment are Harvey Norman Holdings Ltd (ASX: HVN) and BHP Group Ltd (ASX: BHP).
Harvey Norman shares are up 36.39% this year and yet still are yielding a tidy 7.60% per annum. The BHP share price has been riding the commodities boom higher to $38.32 per share and has a net 5.00% dividend yield.
2. Invest your money in diversified ETFs
You can also invest your money in exchange-traded funds (ETFs) in 2020. ETFs generally try to track a chosen index such as the ASX 200.
The great thing about ETFs is that you buy one share or “unit” but that unit provides you diversified exposure to many stocks.
As an example, the BetaShares A200 ETF (ASX: A200) is up 24.27% this year compared to the 23.31% achieved by the S&P/ASX 200 Index (INDEXASX: XJO).
You could invest your money into ETFs and hope to ride the ASX 200’s record highs well into 2020.
3. Become a property investor through REITs
Australians have an obsession with owning property but it can be hard to get a foot in the market given current prices.
However, you can get more liquid exposure to Aussie property through a real estate investment trust (REIT) on the ASX.
A residential REIT such as Mirvac Group (ASX: MGR) could be a great place to invest your money in 2020.
If you think property is overvalued, commercial real estate could be a good diversification option. You might want to look at self-storage via National Storage REIT (ASX: NSR) or retail through Scentre Group (ASX: SCG).
REITs can offer strong yield with more liquidity and lower entry costs compared to buying an investment property.
Now is the perfect time to invest your money in whatever assets you decide are best for you. With so many options available at the moment, find your perfect investment and invest better in 2020!
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Motley Fool contributor Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia has recommended National Storage REIT and Scentre Group. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.