If you wish to live a life free of financial stress, as we all do, investment is the best way to do it. However, despite being very helpful and beneficial, the word investment carries a very negative air around it. The reason most probably is the risk that is usually involved in it. Yet, not all investment options are the same.
There are some options that yield higher returns but involve high risk as well. Others may not offer grand profits but they ensure a risk free investment. In any case, a calculator can be of great help. So, today we will discuss some various types of investing options and their major features.
This kind of investment options are best for people who wish to save money for long-term future goals. These options usually offer huge returns but can be equally risky. Long term investments are a bit complicated and you will need a calculator. Some of the most common long-term investments include.
Some people prefer short term investments that usually involve lower risk and lower return. Yet,, the major benefit is that your money is safer. Some common short term investment vehicles include the following.
Certificate of Deposit – Arguably the safest option, but it works more or less like bonds. The only difference would be that CDs are issued by banks. They are safe because they are insured up to $100,000.
Saving Accounts – Some people call it the basic step towards investment. Like CDs, saving accounts yield a small amount of interest. However, they do not have a maturity date and you can withdraw your money anytime you want.
Money Market Funds – these funds work like mutual funds but the investment option is limited to short term bonds. These funds are safe because the share value remains $1 all the time. However, they yield a little less inertest than CDs.
Other than these, there are numerous special investment options such as retirement fund. Use a calculator to compare your options and park your money in a profitable place.