Where to Invest Your Money
Want your money to work for you but don’t have much? It doesn’t matter how much you have, even with as minimum as $20; you have over a thousand options to choose from. However, generally the more money you invest, the better the profit you will earn over a period of time.
Nonetheless, not all investment is good as at times the rate of return (ROI) is not good enough. Quite often, investment may result in a loss as well, which is why one has to be cautious when investing.
If you invest wisely, you will be able to have the luxurious lifestyle that you have always dreamt of. We are here to your rescue and will help you get started. Unlike most other business magazines, we will not waste your time with meaningless words, but give you a solution to your wealth management problem.
Before you make up your mind on where you want to put your money, please take a moment and consider the major options available in the market:
Traditional IRA
Traditional IRA possesses risk levels as per holdings in the IRA. It’s a personal savings plan that will give you tax advantages for retirement savings. Investments comprise of a variety of securities. Your contributions are subject to tax deduction; however your earnings will not be taxed until they are distributed, which means that you will not have to worry about tax planning.
Roth IRA
Risk levels for Roth IRA also vary as per holdings in the IRA. It’s a personal savings plan in which earnings that are maintained in the account are not taxed. Investments in this plan include an array of securities; while your contributions are not tax deductible, which again means that you do not have to worry about tax planning.
Money Market Funds
Money Market Funds is a low risk investment. They are mutual funds invested in short-term bonds and pay a better interest rate than a savings account but not as well as a certificate of deposit (CD).
Bonds and Bond Funds
Investment in Bonds and Bond Funds are a low risk investment. They are also called fixed-income securities; whenever you sell these bonds, the income paid to you is fixed. When you invest in Bonds and Bond Funds, they are further invested in corporate or government debt obligation. The good thing about this is that you know how much to expect back and there is less ambiguity and tax planning.
Index Funds
Upon investing in Index Funds, the risk encompasses around what index the fund is used for. This type of investment possesses a lower risk level than that of an index fund belonging to an emerging markets overseas.
Stocks
Investing in stocks bears a medium to high risk level but the results are also good. They represent the share of a company in the market; depending on the company’s value the share is bound to decline or incline in value over a period of time. When investing in bonds make sure you study stock market prices carefully and select a company that has soaring stock prices.
Mutual Funds
Risk levels for investment in mutual funds vary as per holdings in the mutual fund. This includes investment in a variety of securities which include bonds, stocks and/or money market securities. The costs and objectives involved vary.
So, what are you waiting for? Go ahead and invest to make your money GROW!
