Types of Investing
There are so many places that you can put your money that the entire subject of investing can be a bit overwhelming. I believe in a slow economy one of the best places that you can invest is in your debts. This is one area that offers a guaranteed rate of return. For example, if you had a debt that was charging you 31 percent interest the banks are collecting the interest. Once that debt is paid off then where does that 31 percent go? The answer is that the 31 percent goes in your pocket. So before I get into the different types of investing I want everyone to be clear on this point. You can get a guaranteed rate of return by “investing” in your debts and you cannot get a guaranteed return in the stock market.
You can put you money in a savings account. This is a good option if you do not want to earn a lot of interest. A popular place to put emergency funds is in a money market account. If you are looking for a money market account you can Google high yield money market and you can do some research and decide what investment is the best for you. You can invest in the stock market. For most people the best way to get involved with the marked is through mutual funds. Mutual funds are low cost investments that help beginners diversify their investments. You can invest in stock. This is an option for more experienced investors. Stock is ownership in a company. The whole name of the game with any investment is to buy low and sell high. Or another way to put it is to buy high and sell even higher! Bonds are another type of investment. A bond is a loan that you give to a company. The company promises to pay the money back to you with interest. Real Estate is another popular investment. There are many people that are running from the real estate market while the real estate gurus are claiming that it is a great time to buy. Remember the whole name of the game is to buy low and sell high. Wherever you invest your money make sure that you do your homework and that you are fully aware of what you are investing in. And stay away from the investments that promise impossible return!
No comments yet.