JADEN P'S IN VEST INVESTING
Here at Jaden P's In Vest Investing, we take the liberty of helping you pick out the kind of investment that you see is best. Below you will see an example of different types of investment.
Contact info: if you need us
(407)140-1134 (hello, hi)
2200 West 13th Street
Sanford, Florida 32771 (Crooms Academy is a cover organization)
Basic Do's and Don'ts
It's important to know some important tips when making investments. These include:
Diversification - Split up your stock, don't put all your eggs in one basket. By making sure that your investments are split up into multiple different businesses, you run less of a risk of crashing and failing by a falling business.
Risk vs. Return - A simple enough procedure, only invest if it's worth the risk. For example, don't invest in something that has a high risk, and a low return. The risk of failing would hurt more than the benefits you would make from the return. Only take the risk if it is well worth it in return.
The Investment Possibilities
Here we get down to the bottom of things. These are the details of the many possibilities that one has when they want to invest. Take time to decide which one is right for you.
- 401k plan - Qualified Profit sharing. These allow employees to contribute parts of their wages to individual accounts. This makes elective salary deferrals being exclude from taxable income. Essentially, this plan helps lower taxes. Some might have to go through a waiting period to start a 401k. While decent in it's merits as a retirement plan, this plan has a medium risk level due to liquidity and business failure.
- Bonds - As a whole in of itself, the risk with bonds is a medium risk. When you start to break down into specific bonds, this level changes. Bonds include corporate bonds, municipal bonds, junk bonds, government bonds, and Treasury bonds. The higher the maturity date, the higher the risk when working with bonds.
- Certificates of Deposit (CDs) - There aren't very many risks with CDs, though they are there. Investors of CDs can lose interest or principal funds if withdrawn before the maturity date. They also risk falling rates when funds are locked in at a length of time at lower rates. Medium risk.
- Corporate bonds - High risk. These bonds do pay higher coupon rates than a government bond however. The risks of corporate bonds is synonymous with investing in stock.
- Municipal bonds - Low risk investments. These investments are issued by local/state governments. They don't see effects from federal income taxes either. Because they are connected to the governments, one can assume they'll be able to pay the buyer of the bond (although records of them failing to are there).
- Money market mutual funds - Medium risk. They provide investors higher yields than a bank savings account, but this comes with the almost mirrored level of liquidity. Also, federal government doesn't insure these investments, but they are tightly regulated. While these are less risky than CDs, they are still a little more risky than low risk investments.
- Junk bonds - This is a type of corporate bond (high risk, high yield), hence it would be a higher risked bond.
- Government savings bonds - Generally considered risk free. This is due to backing by the federal government, so these are a low risk bond.
- Treasury notes and bonds - These are a type of government saving bond, so they have low risks, with moderate yield.
- Treasury bills - Treasury bills have the shortest maturity rate (shorter than treasury notes and bonds). They are a low risk investment.
- Equities - Because an equity tends to depend on how much of a risk you take in the equity market (in a similar vain to stocks and bonds), equities remain at a medium value, really it just depends on how you invest in equities.
We're delivering packages straight to you in investing so that you don't have to make the decision yourself. Some of these plans are less risky than others, so again, you have to decide what you're looking for.
The Luigi Package - for those of you too afraid to take a risk, we've designed a mellow package of investments named after Mario's cowardly brother. This package includes a majority of government savings bonds (treasury bills/notes/bonds), and municipal bonds. About a 50-50 mix of both. Great for the weak of heart.
The Balance Bundle - These actually come in two forms. In our first form, we include a mix of medium risk investments. This includes 10% of Equities, 60% CDs, 15% 401k plans, and 15% money market mutual bonds. What? You feel these percents are made up? Are you calling this organization a liar? No? Good.
The other form is less conventional. In this "balanced bundle," we combine 50% of an investment in a Junk Bond, and the other 50% in a municipal bond. This way, one is a high risk investment, and the other is a low risk investment. They rather "balance" out, and allow you to feel relatively safe with your investments.
The Dare-Devil Delight - Oh yes, for those who want to take things to the extreme with your investing, like say that of a rock climber, we've created the ultimate experience for you. Introducing, the bundle of only Corporate and Junk bonds. All the high risk of investing, and we'll split your investment into two corporate bonds and two junk bonds. You couldn't ask for a more dangerous package could you? Of course you couldn't. No one would be this fooli-err I mean extreme.
The Special Surprise Stack - Don't know what to invest in? Think all the other bundles offered are garbage (if so, you're wrong)? Than this last package won't fail to get your attention. We take your investment, and randomly invest it into multiple different options. You'll be sure to get a surprise. At this point, it's all up to luck because there is a risk in randomly choosing what risky investment will be made. Did I mention that there would be a risk?