Maday's Investments

Financial Options

401 (K) Plans

It's a contribution where an employee can make contributions from his or her paycheck either before or after tax.

Certificates of Deposits (CD's)

A savings certificate entitling the bearer to receive interest.
Insured by the FDIC.
Term ranges from one month to five years.
Site: http://www.investopedia.com/terms/c/certificateofd...

Bonds

A investment which the person who invested loans money to the entity (government or corporate) which borrows the funds

+Characteristics of Bonds:
Face value-the amount of money the bond will be worth when it matures throughout time.
Issue price-the original sell price of the bond.

Sites: http://www.investopedia.com/terms/b/bond.asp

Bond type 1: Corporate

Type of bond issued by a corporation.
Considered HIGHER RISK than government bonds because interest rates will always be higher.
Site: http://www.investopedia.com/terms/c/corporatebond....

Bond type 2: Municipal Bonds

Issued by the state, municipality or county to finance its capital expenditures.
Can fall under two categories-general obligation or revenue bills.
LOW LEVEL of risk to other bond types

Site:https://www.fidelity.com/fixed-income-bonds/indivi...

Bond type 3: Junk Bonds

Fixed-income bonds that are termed for being a non-investment grade bond.
They get their name "junk" bonds because of their HIGH RISK in comparison to investment-grade bonds.
When someone issues a junk bond they have less credit ratings so the investors demand these HIGHER YIELDS as compensation for the high risk investment.

Money Market Mutual Funds

Earns interest for shareholders while maintaining a NAV (net asset value) of $1 per share.
LOW RISK & LOW RETURN
A downside to these funds are that they are not covered by federal deposit insurance.

Junk Bonds

Corporate bonds that are high-risk and high-return. This is because in order to have a high return, a high risk needs to compensate for the additional risk. HIGH YIELD BONDS.
Source: http://useconomy.about.com/od/bondsfaq/f/Junk_Bond...

Government savings bonds

Offers a fixed rate of interest over a fixed period of time.
Not subject to state or local income taxes
NON-NEGOTIABLE
RISK FREE

Treasury notes, bonds and bills

Type of security that has a fixed interest rate and can last over one to 10 years.

LOW RISK
Source: http://www.investopedia.com/terms/t/treasurynote.a...

Treasury Notes

Treasury Bills

Short-term debt obligation with a maturity level of less than one year
Backed and guaranteed by the  Federal Government Treasury Department
LOW RISK
LOW YIELD

Source:http://www.investopedia.com/terms/t/treasurybill.a...

Treasury Bonds

Fixed interest U.S government debt security with a maturity of more than 10 years
Minimum deposit $1000
LOW RISK
Source: http://www.investopedia.com/terms/t/treasurybond.a...

Equities

Ownership of any asset after all debts associated with the asset are paid off
HIGH RISK type of asset
Offer no guarantees
Subject to successes and failures
Sources: http://www.investopedia.com/ask/answers/041515/whi...
http://www.investopedia.com/terms/e/equity.asp

Comment Stream