Those looking to invest money for the future have a wide range of options these days. Stocks, funds, exchange-traded funds (ETFs), investment trusts, ISAs, pensions… these are just some of the options. And there are many more.
Here, I’m going to reveal where I’ll be investing my money in 2022. Not only will I discuss the kinds of accounts I’ll be investing into, but I’ll also discuss the kinds of assets I’ll be buying.
Investment accounts for 2022
Let me start by explaining where I’ll be investing. Here, my plan here is quite simple.
In 2022, I plan to invest my money across three different tax-efficient investment accounts – my Lifetime ISA, my Stocks and Shares ISA, and my Self-invested Personal Pension (SIPP). All of these accounts are with Hargreaves Lansdown, as I believe it offers the best investment choices for me in the UK.
The reason I’ll be investing into three different accounts is that each has unique benefits. With the Lifetime ISA, for example, I get a £1,000 bonus for investing £4,000. That’s a great deal (although I can’t touch the money until I’m 60). Meanwhile, with the Stocks and Shares ISA, I get a lot of flexibility – I can access money in this account at any time. Finally, with the SIPP, I can make contributions into this account and receive tax relief.
The best thing about all of these accounts however, is that all capital gains and dividend income within them are tax-free. That means if I generate gains or income from my investments I won’t have to pay tax on it.
How I’ll be investing in 2022
In terms of the assets I’ll be buying for these accounts in 2022, it will mainly be stocks, funds, and investment trusts.
On the stock front, I plan to keep buying Big Tech stocks, such as Apple, Microsoft, Alphabet and Amazon, for my portfolio. From a long-term investment point of view, I’m very bullish on these companies, as they’re spearheading the technology revolution we’re experiencing right now. Hopefully, we see some pullbacks here so I can add to my positions at lower prices.
I also plan to invest in lesser-known tech stocks that are likely to see strong growth in the years ahead as the world becomes more digital. Examples include chip-maker Nvidia, which looks set to be a big player in artificial intelligence and the metaverse, and UK-listed Kainos, which is helping companies with digital transformation.
Of course, I won’t only be investing in technology stocks. I’m a big believer in portfolio diversification, so I’ll also be buying some more defensive dividend stocks for my portfolio. Examples I like the look of as we start 2022 include healthcare company Smith & Nephew and warehouse company Urban Logistics REIT.
Finally, I’ll be buying funds and investment trusts for further diversification. Funds and trusts I’ll most likely be adding to include Fundsmith, Blue Whale Growth, Scottish Mortgage, and Smithson.
It’s worth pointing out that all of these investments are risky. All could potentially lose value in 2022. However, as a long-term investor with a higher-than-average tolerance for volatility, I’m comfortable with the risks.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Edward Sheldon owns Alphabet (C shares), Amazon, Apple, Hargreaves Lansdown, Kainos, Microsoft, Nvidia, and Smith & Nephew and has positions in Fundsmith, Blue Whale Growth, Smithson, and Scottish Mortgage Investment Trust. The Motley Fool UK has recommended Alphabet (A shares), Amazon, Apple, Hargreaves Lansdown, Kainos, Microsoft, and Smith & Nephew. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.