Top Three Investment Platforms For 2023

Published on: 28 August 2023 Last Updated on: 27 July 2024

The ever-increasing interest rates have many people wondering about a potential recession that could be just around the corner. While some might think that there is no good place left to invest your money, we are here to tell you that you can potentially expand your investment horizon and set up this year for better returns later on.

Here are three great investment platforms to invest your money and generate profit in the long run.

Read on to learn more!

What Is Meant By Investment Platforms?

An investment platform refers to a digital tool or service that helps investors access as well as manage different financial instruments. It can either be a stock, a mutual fund, a bond, or an exchange-traded fund. Such platforms offer a user-friendly and convenient way for investors to purchase, sell, and monitor their portfolios.

Investment platforms can be found in multiple forms, such as online brokerage, peer-to-peer lending platforms, and robo-advisors. Each platform type caters to multiple investment strategies as well as requirements, thereby providing a ton of fees, support services, and features. But as for now, it is significant to opt for the right platform for making investments.

Investment Platform Types You Should Know

Investments are mostly categorized under closed-end funds, unit investment trusts, and mutual funds. All such investments have their own set of challenges, risks, and benefits. Well, it’s pretty much the same case for investment platforms. Before setting foot, it is significant that you discover its primary types:

Robo-Advisors

These tend to be the automated investment management platforms that make use of algorithms for creating as well as managing portfolios. Typically, the portfolios are customized according to the investor’s financial goals and risk tolerance. Some popular robo-advisors are Wealthfront, Digital Advisor by Vanguard and Betterment.

Platforms For Online Brokerage

Digital brokerage platforms refer to online services that let investors buy and sell different financial instruments like bonds, mutual funds, and stocks. Instances of popular brokerage platforms are Charles Schwab, Fidelity, and E-Trade.

Cryptocurrency Exchanges

Thirdly, there are cryptocurrency exchanges are those platforms that let users trade, buy, and sell online currencies. These can be Ripple, Ethereum, and Bitcoin. To name a few famous Cryptocurrency exchanges, Kraken, Binance, and Coinbase deserve mention.

Platforms For Peer-to-Peer Lending

These platforms are designed to facilitate loans between businesses and individuals, cross-sectioning conventional financial entities. Such platforms establish connections between lenders and borrowers, leading to potentially higher ROI for investors.

Investment Platforms That Are Becoming Popular In 2023

Hold your breath as you are going to discover some smart investment platforms that have been doing the talk in 2023. Due to their ease of use, these platforms are most likely to get popular in the coming years, too. So, check them out here and make a smart investment:

Cryptocurrency

Suppose you are looking for ways to improve your financial situation. In that case, you might want to look into cryptocurrency, which is essentially digital money that relies on blockchain technology and is secured through cryptography.
In case you are new to cryptocurrency, you will want to know how it works, which is what we are about to tell you. Regarding blockchain, the ledger keeps track of transactions, including intellectual and physical assets.

The access is distributed amongst the “authorized” users, and all shared information is transparent and instant. Also, the information cannot be tampered with, even by the administrator. If this sounds good, you might want to check out CoinCulture: Your Source for a Detailed CoinSpot Review and find interesting news and reviews about the competitive and profitable industry.
Security is a basic part of blockchain, which ensures that your money and profit are completely yours.

Invest In Gold

Another way to improve your financial situation is by investing in Gold. In fact, investing in Gold and Silver is considered a smart strategy against inflation. Over the long run, Gild doesn’t only maintain its value but also maintains its purchasing cost despite the potential fluctuations in the dollar.

Moreover, the high inflation periods serve as an excellent time to boost your allocations to Gold. You might already have an idea about how the stock markets work. When an economy goes into recession, the stock market slumps, too, which means that real estate can lose its value, too. This is where the importance of Gold comes in.
During the recession, Gold can establish a diverse portfolio, which further reduces your exposure to riskier assets.

High-Yield Savings Accounts

In case you haven’t heard about a high-yield savings account before, you should know that it pays the investors interest on their cash balance. Like any other savings account at any physical bank, a high-yield account is instantly accessible for cash.

A savings account is a brilliant option for those looking forward to a contingency plan. Also, if you want to avoid the risk of losing your money while investing, then a high-yield savings account might be just the right option for you.

However, before you start investing in a high-yield savings account, you will want to assess your finances and create a budget. The key to having a budget is that you will have a clear overview of your incoming and outgoing money. And you will know where you are overspending and how you can cut your expenses.

Once you have a better overview of your incoming and outgoing money, you will find it easier to stick to a budget.

The Bottom Line

Investment platforms have a pivotal role to play in the current financial landscape. Not only does it provide investors with the resources and tools needed to manage their portfolios, but it also builds an opportunity for having a passive source of income. By comprehending the most popular investment platforms, it’s your chance to boost your investments.

So, what are you waiting for? 2023, 2024, and the subsequent years have proven lucrative for the investment industry. Make hay while the sun shines, or you can lose great opportunities to circulate your money.

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Abdul Aziz Mondol

Abdul Aziz Mondol is a professional blogger who is having a colossal interest in writing blogs and other jones of calligraphies. In terms of his professional commitments, he loves to share content related to business, finance, technology, and the gaming niche.

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A Helpful Guide To Franked Dividends In Australia

If you are an investor in Australia, it's likely you have come across the term "franked dividends." But what exactly are franked dividends, and why are they important to understand? This article will provide a comprehensive guide to franked dividends, including what they are, how they work, and why they can be a valuable addition to your investment portfolio. What is a Franked Dividend? You may be wondering, “what is a franked dividend?”A franked dividend is a type of dividend payment made by an Australian company that has already paid corporate tax on its profits. The term "franking" refers to the process of crediting the tax already paid to the shareholder who receives the dividend. The Australian tax system allows companies to pass on the benefit of the tax they have already paid to shareholders through franked dividends. This means that shareholders receive the full value of the dividend, as well as a tax credit for the amount of corporate tax paid by the company. The tax credit can be used to offset the shareholder's own tax liability, reducing their overall tax bill. How Franked Dividends Work To understand how franked dividends work, it's important to understand the basic structure of the Australian tax system. Companies in Australia pay corporate tax on their profits at the rate of 30%. When a company declares a franked dividend, it passes on some of these profits to shareholders, along with a tax credit. The tax credit is calculated as the amount of corporate tax paid by the company, divided by the number of shares outstanding. For example, if a company pays $100 in corporate tax and has 1 million shares outstanding, each shareholder would receive a tax credit of $0.10 per share. Shareholders can then use the tax credit to offset their own tax liability. If the shareholder's marginal tax rate is less than 30%, they will receive a cash refund for the difference. For example, if the shareholder's marginal tax rate is 20%, they would receive a cash refund of $0.10 for every $0.50 of franked dividends received. Why Franked Dividends are Important Franked dividends can provide several benefits to investors, including: Increased income: Franked dividends provide shareholders with a higher level of income compared to unfranked dividends, as the tax credit increases the overall value of the dividend. Tax benefits: As mentioned, shareholders can use the tax credit from franked dividends to offset their own tax liability, reducing their overall tax bill. Lower risk: Companies that pay franked dividends are typically well established, with a proven track record of profitability. This makes them a lower-risk investment compared to companies that do not pay dividends. Diversification: Adding franked dividend-paying stocks to your investment portfolio can provide diversification, as these stocks tend to come from different sectors and industries compared to other types of investments. Long-term growth: Companies that pay franked dividends are often focused on long-term growth, which can benefit investors in the form of capital appreciation and future dividend payments. Conclusion Franked dividends are a valuable component of the Australian tax system, providing investors with increased income, tax benefits, and diversification opportunities. By understanding how franked dividends work, you can make informed decisions about your investment portfolio and take advantage of the benefits they offer. Whether you are a seasoned investor or just starting out, franked dividends can be a valuable addition to your portfolio. Additional: Investing and Trading 101: Investment Ideas for Newbies How Many Jobs Are Available In Real Estate Investment Trusts? How Digital Advisors have Transformed the Investment Sector DiversyFund 5 Steps to Protect Your Portfolio in a Difficult Environment

Glenn Sandler (CPA) of G.I. Tax Service: What to Do If You Can’t Pay Your Taxes

Things happen, circumstances change, and often, people find themselves unable to pay their taxes. If you find yourself in a similar position, it is important that you understand the gravity of the situation. Continued refusal to pay your taxes could lead the IRS to take it forcibly: by garnishing your wages or putting a lien on your assets. However, according to Glenn Sandler, CPA, founder of G.I. Tax Service, there is no need to panic. If you can’t pay your taxes or you owe an amount in back taxes, you can enter into an agreement with the IRS and leverage one of their several payment options. Here is how to go about it: Ensure that you are in filing/payment compliance: To enter into an agreement with the IRS, you must ensure that all your tax returns are filed. The next step is to keep enough of your wages aside to pay off your taxes for the current year. To do this, you will need to estimate your tax returns for the year and ascertain that the wage percentage that was withheld will suffice. If you don’t know how to file tax returns or make accurate enough estimations, please contact tax professionals that will help you through the process. Review your tax returns: Check your tax returns to ensure that the balance that the IRS expects you to pay is correct. The smart play is to calculate your returns for the years you owe and the 3 years that precede it, i.e., if you owe taxes for a year, review your account for the past 4 years. By doing so, any discrepancy between your calculated returns and your tax balance (according to the IRS) can be remedied. Also, if you incurred any penalties in the past, you can try to get them reduced or removed completely. Enter an agreement with the IRS: Once you have filed your taxes and are back in compliance, and have confirmed that you owe exactly what the IRS says that you do, the next thing to do is enter an agreement with the IRS. The alternatives available include: A brief extension of the payment period. The different installment agreements (monthly payment plans with varying terms and conditions). Postponed payment (known as currently not collectible status) for people in financial hardship. An offer in compromise (OIC); a settlement option that allows taxpayers with special and extenuating circumstances to clear their debt by paying a portion of their total balance. Depending on their individual situations, taxpayers with back taxes are eligible for one of the above. Before deciding on which of them to apply for, evaluate your current assets, calculate how much you can pay per month, and consider the effect of incurring even more interest and penalties. Consult a tax professional: If you don’t know how to do any of the above, your best bet is to reach out to a tax expert at G.I. Tax Service. They can help you file your returns and ensure that you are in compliance, check your tax returns and correct any discrepancies, and apply for one of the IRS’ payments options after considering your financial circumstances. When managed smartly, tax debt does not have to be disruptive. All you have to do is secure a payment plan that works well with your income, and before you know it, the debt is all gone. Read Also: Are Payday Loans Really As Bad As People Say? 7 Simple Tips To Pay Off Your Loans Faster

Cut Risks And Guarantee Gains: Why Real Gold Is Attractive

What is paper gold? When investors talk about paper gold, they’re not referring to a gold leaf, which is real gold hammered into a thin, paper-like sheet that’s used in gilding, stretching gold out for decoration in jewelry, architecture, book-making, and mosaics. They’re talking about gold contracts and derivatives that have been created to make gold trading more mainstream, faster, and profitable for traders who want to go short instead of long. Paper Gold vs. Gold Bullion : What’s the difference between paper gold and real gold bullion? Paper gold is a contract for the future delivery of gold. However, most people who trade in paper gold don’t ever actually want to receive gold bullion. Not only are the contracts rarely ever delivered upon, but there’s also a lot of speculation that they never could be delivered on. That’s because there’s more paper gold out there than real gold bullion. The situation is even more pronounced with silver. Paper gold exists so that gold traders can profit from gold prices going down. When they “go short” on gold, they essentially rent a gold stock from someone who already owns it, sells it at the price of gold today, then buy another gold stock and return it. If the price of gold has gone down, they’ve made a tidy profit. Many believe that the paper gold market is artificially keeping gold prices down, both by inflating the real quantity of gold that can be traded and allowing this type of short-selling. Is Gold Bullion Better? It depends on what kind of investor you are, but if you’re looking into gold because you are risk-averse and you need a conservative asset, yes, gold is better. While many criticize the expense of keeping gold, saying insurance and storage are expensive. But there are also management fees involved in a gold ETF. Plus, you face the counter-party risk of trusting your investment with a fund. When you buy gold bullion from a dealer like Silver Gold Bull, you’re putting your trust in the value of gold. When you buy into a gold ETF, you’re putting your trust in the fund’s management as much as anything. As any investor knows, there’s never such thing as a guaranteed gain. But real gold bullion is about as close to it as you can get. Since modern gold trading began, it’s kept up with inflation in the long term (and done much better than either currency or equities over certain periods). For centuries before then, gold was the preferred way to store wealth. Physical gold bullion is one of the most durable materials on the planet. Thanks to safe and insured online gold buying from online gold companies like Silver Gold Bull, it’s never been safer to save on gold by going online. The risks of holding gold bullion are far lower than paper gold or gold mining stocks in the end. Trust your money in real gold bullion, not paper gold. Read Also : Investors Agree: Gold And Silver Is The Way To Go

Top Three Investment Platforms For 2023

What Is Meant By Investment Platforms?

Investment Platform Types You Should Know

Robo-Advisors

Platforms For Online Brokerage

Cryptocurrency Exchanges

Platforms For Peer-to-Peer Lending