subject: Where to Invest Your Money [print this page] Where to Invest Your Money Where to Invest Your Money
Choosing the proper venue to invest your money is one of the most important aspects of investing. Investing can take up a lot of time or very little time; it can be very risky, or possess very little risk; it can be extremely lucrative or extremely costly. Before you invest a single cent, you must be aware of your various options. This is a brief analysis of some of the most popular investment options.
CD
A bank CD is a usually considered a safe investment. CDs are FDIC insured for up to $100,000. Therefore, unless you are investing amounts in excess of $100,000 there is very little risk. However, please note that you cannot withdraw your money from the CD for the set amount of time. If you violate this agreement you are subject to a penalty. CD don't usually offer excellent returns and some banks require a minimum amount to invest.
Bonds
A bond is basically a loan you make to a company or a government body. Bonds have been around for a long time, and they possess varying degrees of risk and return. Typically speaking the higher the risk the higher the profit.
Stocks
A stock is basically buying a small portion of a company. There are two ways to make money with stocks. One is the stocks dividends, which is payment for when the company does well, the other is by buying the stock at a lower price and selling at higher price. Stocks like bonds have varying degrees of risk and rewards, but are generally considered safer than other types of investments.
Real Estate
Real estate is a popular and well known investment. There are so many different types of real estate investment that it's hard tocategorize. Most typical real estate investors are the ones that own their own homes. Real Estate can be quite lucrative, but is generally considered a long term investment. The risk normally depends on the economy of the area and the state in which the property is maintained.
Currency Trading
Currency trading is one of the most lucrative and risking investments out there,(depending on you method) basically you are trusting that one country's economy will out perform another for a set interval of time. Many people have made a fortune in the Forex market, but many people have lost a lot of money as well.
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