Our company will strive to make your investment work for you. Options of investments include the following:
These investments are obviously more risky in nature, but return from these investments is higher.
- Equities - Equities are more standard stock practices. Shares of stock on a certain market are bought and sold. They are very risky investments due to the fact that stocks can easily lose value.
These investments are much lower risk, but the return is usually much lower than that of a high-risk investment.
- 401k Plan - This is a retirement plan in which a portion of your paycheck goes to an account which you will have access to upon retirement. Due to the stable nature of savings accounts, a 401k plan can easily be considered a low-risk investment.
- Certificate of Deposit - These are accounts which accumulate interest much faster than a regular savings account. The only risk usually involved with CDs is trying to withdraw money from the account before the set time period is over, as penalties may occur if money is withdrawn.
- Money Market Mutual Funds - Individual investors pool resources into a company which then purchases financial assets. MMMFs are good places to invest since they are usually very safe. Also, taxes can be avoided by using MMMFs.
- Treasury Bills - Often seen as the least risky investment to investors, treasury bills are bought from the government at a discount ($990 for a $1000 T-bill) and sold at maturity for their face value (full price).
Bonds are investments in which investors loan money to receivers who are mostly corporate or government. The money is borrowed for a period of time and paid back with a fixed or variable percentage of interest.
Types of bonds include:
- Treasury bonds - Bonds which are issued by the government and have very long maturity dates (~10 years); considered to be risk-free. These bonds help to keep the government running.
- Municipal bonds - Bonds which are issued by the state or local government. These bonds help to build communities and improve neighborhoods. They are very low risk due to state governments being able to pay back the bond from tax revenue.
- Junk bonds - usually higher-risk bonds which have similar risks to investing in stock. These bonds are usually used by corporations.