Noriega's Bank of Investment and Cassava
What We Can Do
Here at the Dank we believe that the consumer is always right,even if facts or evidence would declare otherwise. We will do anything necessary for you to meet your financial goals, no matter the cost to you or how brief you achieve them.
So you probably thinking, "How Should I Invest?" Well down we will analyzes a few of your choices see we can set you with the kind of investment you want.
Let's say you don't want to make it rich playing the market, and just want a decent retirement. Don't worry, we won't judge. Its often better to play it safe, and safe is what a 401(k) plan is best at.
The 401(k), is handled by employees, and as such is an investment agreement between them, we will gladly negotiate on your behalf. In this deal you contribute a center amount of your paycheck as nontaxable income for retirement, which the employer must match with a certain amount of money.
Though not federally backed, they are considered high priority assets and recoverable assets for bankruptcy reasons. Furthermore when switching employers there is almost some way of cash transfer.
A bond is a representation of debt for funds issued by a legal entity which promises some form of compensation. Generally bonds are considered lower risk than other forms of investment, but suffer by having almost no liquidity.
Bonds are a proof of debt which promises the issuer will repay the holder some of money. They can either pay an interest based upon the loan, or pay a certain amount after a period of time, known as reaching maturity.
They are often more stable investments, but often lack liquidity. They may be transferred on the secondary market at any time though. They often considered best as an investment to pay out at after a long period of time.
Bonds issued by the federal government are risk free, while municipal and corporate bonds have more risk associated with it.
Certificate of Deposit
A type of time deposit, where one grants money to a party for a fixed period of time, determined immediately upon opening, where one may withdraw all of it, with interest as soon as the fixed period is over.
They have no liquidity, and sometimes cannot be transferred on the secondary market. Almost all CDs are federally backed, similar to a savings account, and therefore enjoy almost no risk
Corporate bonds are bonds issued by corporation as oppose to any government organization. They are similar in ever way to other bonds in how they effectively work.
Corporate bonds, in particular junk bonds, are much more high risk than a standard bond. In addition they often have restrictions upon how they can be traded on the secondary market. However they often have shorter payback times than government bonds.
Bonds which fund a local government or its agencies. They generally work like other bonds, but often have different functions and purposes, and in general are higher risk and decent secondary liquidity.
Assessment bonds are the highest risk, and rely upon speculation of property tax within the issuer's boundary.
Revenue bonds grant a income payment based upon customer payments for public goods. These are somewhat risky, but not as much as other investments.
General obligation bonds are the leas risky and work like most bonds, paying out a fixed amount after a period of time.
Money Market Mutual Funds
A mutual funds which acts on the behalf and capital of its investors in order to make investments on short term debt and pay out dividends to their members. They are often more lucrative and pay higher interest than one would have from simply saving one's money in a bank account.
They are higher risk than a bank account, but by very little, and provide a similar liquidity.
A type of corporate bond noted for its very high risk. They almost never pay out interest over a period of time and instead are about end of period payout.
Like most bonds, they have little liquidity, and junk bonds in particular are almost impossible to sell on the secondary market. It should be noted that for almost all forms of pension funds in the US, one is not allowed to receive benefit for the investment of Junk Bonds due to their risk.
Government Savings Bonds
Bonds issued by the Federal government to repay debts. They are like most bonds but have a few key distinctions.
They have no risk due to them being backed by full faith and credit. They have low liquidity, but can be cashed out early for a penalty, and have no liquidity on the secondary market. As you need to hold a physical paper to own the bond, you may have it damaged and lose any claim to the money.
Treasury Notes and Bonds
Long term investments issued by the treasury for the repayment of debt. They are very similar to government savings bonds expect for two major distinction. One, they have secondary liquidity due to being marketable. Two, they can be issued electronically so they don't have to physically issue you a paper like in a savings bonds.
Almost identical to a Treasury Note and Bond, expect they reach maturity in under a year. Accordingly they possess less liquidity (greater penalties) and pay less interest.
Also known as stock, represents a share of a company and an entitlement to a share of its profit, known as a dividend. Stocks come into two types, preferred, which pays a more stable dividend than other types in exchange for less control of the company, and common stock which grants voting rights in exchange for the less stable dividends.
In general equities have no liquidation power. Companies hold no responsibility to repay money used to buy stock, and as such are high risk. They also have limited secondary liquidity, as many different stocks in the US have some restrictions on how they can be traded on the secondary.
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