The Many Kinds of Investments

To make money, you have to spend money. Though to make money in the long-term, you don’t necessarily need to spend a lot over an extended period. A sound investment today could yield more than a few dividends in the future.

The challenge is figuring out what kind of investment is best for you and your goals.

There are multiple types. Different sorts can help with specific goals, so you first need to know what you want all that money for and when.

Banks and credit unions are one of the most reliable.

There are few long-term investments as safe as a savings account. Some banks may even offer the option of helping manage your money. Checking accounts are also a good move since they provide flexibility and liquidity.

Bonds are underrated, in my opinion.

A bond is a loan made by the investor towards an organization. You get interest payments over a specified period, along with a repayment of the principal. There are many types of bonds, including Treasure, agency, and corporate ones. Each one has its ups and downs.

The most common investment option are stocks.

Stock is when you purchase partial ownership in a corporate entity. As the performance of the company goes up or down, so does the value of what you own. Different stocks have different potentials, with some better for short-term buying-and-selling and others suitable for long-term growth plans.

Commodity futures can be an interesting choice, especially if you’ve seen the movie Trading Places.

This investment can be a bit of a gamble. The idea is to buy or sell a specific quantity of a commodity at a specified price on a particular date in the future. The agreement must be made in the present. You can buy or sell many things this way, and doing well involves a bit of speculation on what might happen.

My sister prefers real estate as her investment of choice, though.

Real estate investments are involved. There is the price of the property, the value of any structure on it, and even the possibility of mineral deposits. All of these can make buying a plot a huge risk. However, in the end, land always retains some value, so it isn’t a total loss when you liquidate the investment.