Investment Options

Investing is defined by the Merriam-Webster Dictionary as "expending money with the expectation of achieving profit or material result by putting into financial schemes, shares, or property; Or by using it to develop a commercial venture". But what does this mean for you? It means to put your money on a new or already established business to help yourself increase your money's value along with that investment.

Why Invest?

Most people will ask themselves whether or not they should invest everyday. Maybe it's a simple question as to "Will I make my money back?", "Will I lose what I invest?" to "How much is enough?" and "What is worth investing in?". Though quite personal and individual as these questions are, it never hurts to consult a professional. Knowing as little as a budget, a time line, and how willing someone is to succeeded is more than enough to get an idea of what to invest in. But remember, investing isn't just stocks and bonds. An investment can be something small and even tangible like gold. Not everyone is the same, so why should their investments be?

To Begin Investing

Low Risk

The lowest risk often involves the lowest return and the longest wait time in investments. Here are a few example on what can be done to stretch your dollar over time.

401 (K) plans: These retirement documents may seem a long way off, but it is never too early to start saving up for your golden years. Though fairly common, they are also misunderstood. Your employer will remove a small portion of your pay, before or after your payroll taxes, and place that money into a savings account that will only be available to the employee after they have stopped working or reach retirement age. Starting early only helps add up all those benefits.

CDs: A CD, or Certificate of Deposit, acts much like a savings account though users cannot withdraw from it until a certain time has past. This would be it's maturity date which can range anywhere from 6 months to 5 years. These dates and other features, like rate of interest, should be discussed over though, as they do vary bank from bank.

Money Market Fund: This comes in many forms, though the most common in recent times would be homes. Equities are material items that may be bough and sold, as long as all assets are also paid off.

Treasury Bills, Bonds, and Beyond: These are many ways you can put your money into the government and wait it out to later return and collect your money along with a nice return at a fair interest rate. These can range greatly in value you and the longer they are waited out, the better the return can be with little risk and much ease.

Moderate Risk

With moderate risk, moderate returns are to be expected. Added to the low risk options, this makes for the ideal for many investors.

CDs: A CD, or Certificate of Deposit, acts much like a savings account though users cannot withdraw from it until a certain time has past. This would be it's maturity date which can range anywhere from 6 months to 5 years. These dates and other features, like rate of interest, should be discussed over though, as they do vary bank from bank.

Municipal Bonds: This kind of bond is like community service in a sense that your money will go to your state or local government to be used to improve a public property with a good return if successful.

Money Market Fund: This comes in many forms, though the most common in recent times would be homes. Equities are material items that may be bough and sold, as long as all assets are also paid off.

Equities: This comes in many forms, though the most common in recent times would be homes. Equities are material items that may be bough and sold, as long as all assets are also paid off.

High Risk

This high risk planning is not recommended and can take up a large sum of money to begin in as well. With diversification, these options are still risky and best left to the professionals and veterans of investment.

Junk Bonds: These risky bonds have a high return and come from companies asking for investors though have a bad credit or history that come with them. They are not recommended and the potential loss is at a constant high.

Municipal Bonds: This kind of bond is like community service in a sense that your money will go to your state or local government to be used to improve a public property with a good return if successful.

Corporate Bonds: Another form of bond that are sold to investors to keep a company running smoothing, which can have a high return, though if not successful will reap a high loss.

Equities: This comes in many forms, though the most common in recent times would be homes. Equities are material items that may be bough and sold, as long as all assets are also paid off.

To begin investing, a person should first think about the kind of investment they want to make and why. To help narrow that down, they are organized by three categories which have two sub-factors: time and return goals.

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