Sky Investment Solutions

Our goal is to help you reach yours.

Investments are a key part to any responsible economic portfolio, and the range of investment options can be daunting to many potential investors. We here at Sky Investment Solutions help you find, select, and manage the best investments for you and your economic goals.

Risk Groupings

Low Risk

Treasury bills, notes, and bonds

Government Savings bonds

Municipal bonds

Money market mutual funds

Certificates of Deposit

Medium Risk

Corporate bonds

Stocks

401(k) plans

High Risk

Junk bonds

Futures

Bonds

Bonds are a major investment option for any plan. Bonds are agreements that you give a loan to other entities who will pay you back on a certain schedule, and these entities are mostly governments at varying levels or businesses. Since the entity paying you is a government or business, there is usually little risk involved. The main exception to this rule of thumb is a junk bond

Treasury bills, notes, and bonds

Treasury bills, notes, and bonds all operate as bonds, but their length of time varies from short to very long. Since these are bonds from the federal government, these types have virtually no risk, but only have a small reward. The main risk associated with these bonds is that inflation will outpace the money you initially invest.

Government Savings bonds

These operate similarly to Treasury bonds - you invest your money with the federal government. These hold the same risks and rewards, characterized by the low levels of both. These are tax-exempt at the local and state level, however.

Municipal bonds

Municipal bonds are congruent to Treasury bonds, with the exception they are to the local government and not the federal government.

Other low-risk investments

Money market mutual funds

These mutual funds operate by investing a collective group's money into a variety of short-term financial assets, including bonds, certificate deposits, and others. Each "share" in a money market mutual fund is one dollar ($1). These are low-risk, low-return funds.

Certificates of Deposit

Certificates of Deposit (or CDs) act similarly to bonds. In this case, you give money to a bank for them to use, and then you are locked out of that money for a set period of time. You must pay a fee or penalties if you wish to access the money before the set time period is up. These are still low-risk, but riskier than a federal or municipal bond due to the fact that banks can, on occasion, fail.

Medium Risk Investments

Corporate bonds

Corporate bonds are bonds that come from businesses. This makes them medium-risk, because businesses fail often while governments do not. Also, since businesses make profits that occur more often and are bigger than governments, the rewards from a corporate bond will be significantly higher.

Stocks

Stocks are an essential part to a diversified portfolio, but they come with a lot of risk if managed incorrectly. Stocks are shares in a company with values that fluctuate based on how the company is doing financially. If invested in lower-risk stocks, then stocks can become a fantastic income source. If invested in higher-risk

High Risk Investments

Futures

A future is basically a contract that you will buy or sell something on a specified date at a specified price. This is a significant gamble, as there is a substantial chance that you will buy something at a higher price than normal or sell something at a lower price than normal at the time the futures is fulfilled. This option is really betting on the future value of goods, which is a huge gamble.

Junk Bonds

Junk bonds are a sub-type of corporate bond. A normal corporate bond is usually to a respectable and stable company with good credit, but junk bonds are the opposite - bonds to companies with poor credit and aren't stable. There is a huge risk involved in this, as many, many, businesses in this category fail. There is a significant, although small chance, however, that the company involved could be the next big thing - a bond to Apple at the time of its creation would be considered a junk bond.

Diversification of Assets

Diversification of investments is key to a healthy financial plan. You don't want to put all of your money in low-risk assets, as you will not gain significant amounts of money, and you don't want to put all of your money in high-risk assets, as you have a high chance of losing it all. A good diverse plan needs a majority of investments in low-risk, about three-quarters of the rest in medium-risk investments, and the remaining investments should be high-risk. This way, you can get a baseline of income that is safe, and a moderate income in addition from higher-risk investments.

Contact Information

365 Business Park Street, Sanford, FL 32771

1-800-555-CASH (1-800-555-2274)

Open for appointments from 8:00 AM to 7:00 PM every day.