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Proper allocation of capital is tantamount to being well-off years down the line. Tucking in a few hundred dollars in a savings account won't grow your funds to at least decent amounts. If you are really serious about growing your savings, here are five smart investments that you should consider at once.

Energy Stocks

Timed correctly, filling your baskets with some energy stocks can lead to capital appreciation. The sheer size of the energy market, which is currently valued around $7 trillion, makes it one of the most liquid and valuable niches on the planet. Aside from the market volume, the energy sector also generates relatively higher revenue than any other sector, which makes it a great incubator for your investment funds.

Credit Default Swaps

For investors whose timeline is five years or less, experts recommend parking a portion of your investment capital into credit default swaps or CDs. Pick a maturity date that suits your investment objectives. Premiums on CDs are usually done on a quarterly basis, and the money invested cannot be accessed until the agreed upon maturity date.

Your Own Pad

You should look to own your own home instead of renting until your retirement years. It can be expensive to fund a house of your own, yet the long-term yield offsets these initial costs. Plus, you don't even have to pay the full price of a house upfront. You can secure a mortgage that's payable up to 30 years. Use an FHA Mortgage Calculator to determine the minimum principal amount and the recurring monthly mortgage payments.

Exchange Traded Funds

Abbreviated as ETFs, these assets are more tailored for investors with a long-term horizon on their portfolio. When you buy an ETF, you are buying a fraction of a mix of different assets that constitute that fund. For this reason, ETFs are a popular investment vehicle for people looking to diversify their portfolio and spread the related risk.


A 401(K) plan is basically free cash that your employer may be putting up for grabs. Check with your employer if the plan is indeed accessible and if so, the maximum amount you can be contributing every month for the plan. While this does not result in capital appreciation like the other investment examples, parking money on a 401(K) plan is a great way to lower taxes.

These five investments can accelerate your retirement and enable you to live a financially comfortable lifestyle while still continuing to increase in value.

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