There actually is no across the board answer to this question. A lot depends on how many risks an investor is willing to take, how much money he or she has available and how various investment options are doing at any given point of time. However, the following advice can help one make wise investments and avoid bad ones.
One important factor in making wise investments is being willing to have a diversified portfolio. What this means in simple terms is that one makes some “high risk/high reward” investments along with other investments that pay a small yet steady interest rate over time. This investment strategy helps one to have at least some money to fall back on in case a profitable yet risky investment goes bad. An example of a diversified portfolio would be to buy some risky stocks along with bonds or fixed annuities.
A diversified portfolio should also have some investments that can be sold right away if need be. Long term investments such as annuities and bonds will not release the cash principal for many years. While these investments are profitable, one will not want to have all of his or her money tied up in them.
Buying gold is also one of the best investments that a person can make. Gold has been valuable since the beginning of time and will continue to be so for the foreseeable future. There are various types of gold to choose from, but gold bullion coins, gold bars and/or gold rounds are usually the best forms of gold investment.
A wise investor will consider the options, do thorough research and choose the investments that best suit his or her needs and budget. The best way to invest money for one person is not the same as it is for another person. Additionally, the financial world is changing all the time and so it is always a good idea to stay abreast of new developments and make or change investments accordingly.