Introduction:You can put your money in your local bank or credit union checking or savings accounts, but if you would like to take a chance on receiving higher returns on your money, you should check into the following investment vehicles.
Bonds are the way the Federal and state governments, local municipalities, and large companies borrow money. When you purchase a bond, you lend money for a set period of time and they pay you a set amount of interest on your money. When the bonds mature, you will get all of your money back. There are several types of bonds, regular, tax-free, and U.S. Savings bonds. Tax-free bonds earn less interest than regular bonds, buy you do not have to pay taxes on the interest. The interest paid on U.S. Savings bonds is paid when they mature and you cash them in.
Stamp, coin, antique furniture, gun, quilt, vintage clothing, and other collections can be quite valuable and that value can increase year after year. The challenge with most collectibles is that it can be hard to find a buyer when you want to sell and convert them into cash. Other items to buy and sell are precious metals, like gold and silver, which have always increased in value over time. Commodities like oil, sugar, coffee, and futures are also available for purchase as investments.
Whole life insurance builds value over time and at least a portion of the gain can be withdrawn when the policy matures. It will also pay your family or estate a set amount of money in the event of your death. With this type of investment, you are allowed at some point to borrow money against your policy by withdrawing the equity.
Mutual Funds are investments made up of many individual stocks and bonds, and there are two types: load funds and no-load funds. Load funds charge fees when you invest in them and no-load funds do not charge those fees. Instead of being made up of stocks and bonds, Money Market Mutual Funds are mutual funds that are comprised of U.S. Treasury bills, bank notes and other high-quality short-term debt. Select the type of mutual fund that meets your investment goals and objectives.
One of the hardest things about investing in stocks, company shares that are traded on one or more stock exchanges, is deciding when to buy and sell. Stock investments have a higher level of risk, because the values of individual companies may rise or fall, which makes the stock market dynamic and volatile. When times are good, some companies pay dividends to their investors on a periodic basis.
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