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If you missed part 1 of the best investments to grow your portfolio, click here to refer to some investment opportunities discussed. In part 2 of this series, we will be continuing to discuss the best investments to grow your portfolio.

High-Yield Savings Account:
With traditional banks that have physical locations, there are so many costs involved that these institutions offer little interest rates or annual percentage yield on their savings account. With online banks, the overhead cost is much lower which means these institutions can offer much higher interest rates. Some interest rates with online banks can reach over 2%, compared to the poultry 1% offered by physical banks. A high-yield savings account is your best bet if you need to access your funds in the future. While a high-yield savings account runs little risk since these accounts are FDIC-insured, there is a potential to earn less the more money you invest due to inflation. The best reason to invest in a high-yield savings account is liquidity. At any point, you are able to withdraw money as you please. On the contrary, federal law requires no more than 6 withdrawals are made from that account. Otherwise, you will face penalties and a possible shutdown of your account.

Real Estate Investment Trust:
Real estate investment trusts are simple: they are a way to own part or whole of a real estate property. What makes REITs different from investing in real estate is not paying taxes if you convert income into dividends for shareholders. In addition, REITs are a hands-off way of owning real estate. A third party is responsible for the maintenance and management of the property. REITs have different levels of investment, meaning you can choose whichever property you wish. This includes houses, hotels, data centers, retail, and telecommunication towers. One important note to add is all investments are best with publicly-traded REITs. Publicly-traded REITs are safer and are the least expensive option compared to private or non-publically-traded REITs. As with all stocks on the stock market, a REIT’s stock can decrease. However, REITs properly managed typically see higher values in the future. The best REITs to invest in are ones that steadily see an increase in dividends rather than the highest paying dividend. In terms of liquidity, REITs have the ability to convert to cash during stock market hours. On the contrary, check the value of your conversion before making the switch.

Disclaimer: This article is meant strictly for informational purposes. Not intended as financial or investment advice. Do not misuse or misconstrue the information in this article. Seek advice from your personal financial advisor on matters pertaining to investments/finances.