Wednesday, September 17, 2008

Shedding light onto the World of Investments

Investing may be one of those words that makes you run in the opposite direction, but investing can be simplified to wisely using your money to work for you. What is meant is that investing allows for you to place your money into something, whether this is stock, bonds, Certificate of Deposits, or many other options we will get to, that will allow it to grow itself over time returning back to you more money than you started out with in the beginning.This is the secret to how the rich maintain their wealth and how you too can retire at an earlier age. But, we must caution you, investing wisely is the only type of investing that you should do.This is just a start, a start on a road to creating money work for you. I will cover the basics of investing and move on towards how to invest. It is important to learn the basics right now before you start investing.Types of Investing:*Stocks - stocks are partial ownerships in a publicly traded company. This is a company that has allowed itself to be bought and sold in small portions, called stocks on a stock market. Stocks can flucuate up or down and can be bought or sold in any whole number amounts. Stocks are considered to carry a higher inherent risk than other types of investing. It is ideal for investors who would like to see gains in their investments with the balance of carrying a higher level of risk of losing their money.*Bonds - Bonds are a more conservative approach to investing that allows for you to give companies a certain amount of money and for this company to pay you back the amount you lended the company plus a percentage of the total amount borrowed by the company. It is ideal for people who do not want to lose their investment money but would like to have a small return on their investment.*Mutual Funds - Mutual Funds are a collection of stocks that are managed by a team of professional stock analysts who choose what company's stocks to buy to add to this mutual fund portfolio. This is considered a medium risk investment. It is ideal for people who are not wanting to have high risk like with stocks, but would like moderate returns on their investments.*Real Estate - Buying real estate for the purpose of an investment allows for investors to have a safe place to keep their investment with a high probability of seeing their investment increase. This type of investment takes time and should not be rushed into until all details and understanding of real estate buying have been diagnosed.To be continued... continue reading other Investing articles by Matt

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