How to Find the Best Investment

There is ONE best way to find your best investment in 2013, 2014 or well beyond. If you couldn’t find your best investment option if it was on a short list staring you in the face, investing money is about to be simplified for you.Your best approach to investing money is to have a goal in mind and then compare your investment options, based on YOUR priorities, in terms of: liquidity, safety, growth, income, and tax advantages. The option that ranks highest and best suits your priorities or needs is your best investment option. This simple process has made investing money simple for investors in the past and will work in 2013, 2014 and beyond. Plus, it will help you avoid major mistakes if you invest with a goal in mind — by eliminating choices that don’t fit your needs.LIQUIDITY and SAFETY: If you might need ready access to your money after you’ve invested AND can not afford to take a loss: forget about growth investments like stocks or stock funds, long-term bond funds, real estate, and tax-favored accounts like IRAs and retirement annuities. Your best investment option is to give up the prospect for higher returns, higher income, and tax breaks… until your financial position changes. For now investing money means keeping it safe and liquid in the bank or in a money market fund in case you need it for a financial emergency. Better safe than sorry.Once you are ready to invest with a long-term horizon (like for retirement) investing money for GROWTH should always include stocks and perhaps real estate as well. For most folks the best investment option for stocks is diversified stock mutual funds. The easiest way to invest money in real estate is with specialty real estate equity funds. Either way, the average investor accepts risk to earn higher returns; and mutual funds offer good liquidity if you want some money back. To get a TAX ADVANTAGE invest in funds through your 401k at work or in a traditional or Roth IRA account with a mutual fund company.Over the past 30 years investing money in bond funds was the simplest and perhaps the best investment option for average folks who wanted HIGHER INCOME. These funds earn higher interest (paid to investors as dividends) than truly safe options like bank savings accounts and CDs. For 2013, 2014, and beyond: do not consider bond funds if SAFETY is high on your list of priorities. Interest rates are near record lows; and bond funds will lose money when rates go back up.When investing money always have a goal in mind and rank your options in terms of liquidity, safety, growth, income, and tax advantages. That’s the only way to avoid major mistakes and find your best investment option.