subject: Investing Long-term For Future Financial Gain [print this page] If you are thinking of starting an investment portfolio for future needs, such as a childs college education or retirement there are a few options for you to choose from. Investing for these future plans means that you dont have to invest in any high risk investments. You will be better off investing in very safe ways that show a good return over a longer time period.
The first thing to look at is Bonds. There are numerous types of bonds available that you can purchase. Bonds are like Certificates of Deposit, although they are not issued by banks they are issued by the Government. Depending on the particular types of bonds you purchase, it is very possible for your initial investment to double over a specific time period.
Another relatively safe way of investing over time is Mutual Funds. Mutual Funds are made when a number of investors put their money all together to buy bonds, stocks or other investments. How the money will be invested is usually decided by a fund manager. The only thing you need to do is find yourself a reputable and qualified broker who deals with mutual funds and they will then invest your money, along with other clients money. However you should be aware, although Mutual Funds are still a safer option, they are a little riskier then bonds.
Stocks are another way to invest for long term plans. Shares in stocks are basically shares in ownership of that particular company. So when the company is doing financially well, your stock value increases. However, if the company is not doing financially well, your stock reflects this, and the value of it drops. Stocks are, for this reason, obviously more risky then mutual funds. But having said this, if you were to purchase stocks in good, stable companies, for example G & E Electric, you could relax a little knowing that the money you invested is relatively safe.
The most crucial thing you must do before you invest any money into anything is research. Doing your homework on long term gain in investments is what will make the difference between being successful at investing or not. Always choose stocks that are well established and have a proven track record. If investing in mutual funds or stocks still feels too risky for you right now, then at the very least invest in bonds that are guaranteed by the Government. Always seek professional advice from a financial planner, before investing in mutual funds or stocks, as they will be able to help guide you towards the safest stocks for you.
by: james galloway
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