For anyone starting to explore investment options, the notion of retirement stocks may seem like a distant idea. However, the perspective for young investors should be based on the inevitability of the future. Aging might feel like a far-off concept, especially when one is occupied with the hustle of career progression. Yet, as we all know, time moves swiftly, especially when filled with energetic endeavors, and before one realizes it, the days of rest are upon us.
Retirement stocks hence can be one of the most promising investment instruments for novice market enthusiasts. They might be termed differently but the essence of the game remains the same.
Meta Platforms (NASDAQ:META), formerly known as Facebook, is one stock that is recommended for new investors. The tech giant, which has grown from a dorm room idea into the dominant force it is now, is largely considered as indispensable as sliced bread. “No other social media networks command the global reach and utility offered by Facebook.” This is one stock one can grow old with rather than merely outgrow.
However, like any investment, it is not without risks and uncertainties. One significant concern lies in Meta’s shift towards the metaverse. That said, given Facebook’s continued growth and its potential returns from investments in virtual and augmented reality, it remains a strong candidate for a retirement stock. The introduction of a dividend can be seen as an added advantage, leading analysts to rate Meta stock a strong buy.
On the surface, investing in tax consultancy firm, H&R Block (NYSE:HRB), might seem like an uninteresting idea. Yet, in the ever-evolving gig economy, this “boring” business is about to become much more relevant. Data suggests that the market value of the gig economy could reach $918.94 billion by 2028. The forecasted growth trajectory of 14.22% compound annual growth rate (CAGR) from 2022 is very promising.
The importance of H&R Block is likely to rise in the upcoming years as more companies lean towards hiring independent contractors as opposed to employees. The complexity and filing requirements for contractors differ significantly from employees, providing potential opportunities for tax consultancy services to grow and thrive. Analysts have rated it as a hold with a $55 price target, although that might be modest considering its future potential and dividend yield.
Another retirement stock recommendation for new investors is the 100 year-old tech giant, IBM (NYSE:IBM). Despite its age and seemingly uninspiring appeal for a new investor, it is due for a reconsideration. IBM stocks have shown a robust run, with an almost 15% gain in market value since the start of the year, and an impressive 45% increase in the trailing one-year period.
The company’s ongoing commitment to innovation is evidenced by its Watson computer system, which has helped advance the concept of machine learning. Given that IBM has been at the forefront of digital intelligence, it is expected that its stocks will continue to grow. This makes IBM another solid option for investors looking at long-term growth and potential retirement stocks.
In conclusion, while these recommendations are based on the view of the author and in compliance with publishing guidelines, it’s always advisable for investors to conduct their own research and risk assessment before investing. After all, time is the greatest asset, and the earlier one starts planning for retirement, the better.
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