The Basic Investment Types
When you want to get into investment, probably you would wonder where to start with, correct? because there are so many different invest vehicles out there and most people don't really know which invest vehicle in start with. I'm pretty sure some people say "Real Estate is the best investment' and the others say " Stock is the best investment"., People have different opinions and perspectives which based on their experience.
Doesn't It throw you off? That makes you not want to do any investment, uncertainty, and risk would hold you back. Here is my opinion, the biggest risk is not taking any risk in your life. If you decided not to do any investment (including not making any decision), your saving will be very predictable all the money built up in your account won't grow or lose, just stay as it is, in fact rather losing considering tax and inflation. That is why It is hard for people to achieve financial freedom. Look, once you quit your job or laid off, it happens all the time. It would eventually be hard for you to keep the lifestyle as it is. For instance, I have seen many elderly clients and friends who had to lose their assets(ex. house) to make ends meet, or having their children work for the mortgage.
I highly recommend you to build up your wealth with right invest vehicles from an early age for your retirement. The beauty of investment, according to investment professionals who have 30 and 40 years of extensive experience like Warren Buffet and Phillip A. Fisher, always work in a long term.
Those the type of investment vehicles that exist and you can access to.
- Commodities(i.e. Gold, Silver, Oil)
- Business Ventures
- Limited Partnerships
- Raw Land
- Speculative Common Stocks
- Lower quality bonds
- Investment Real Estate
- Blue Chip Stocks
- High Grade Bonds
- Mutual Funds
- CDs
- Investment Insurance
- Money Market Funds
- S. Treasury Bills
- Annuities
- Equity in house
Here are the questions,
Which investment vehicles are the safest?
Which investment vehicles give you the best liquidity?
Which invest vehicles give you the maximum interest rate?
<The Recommend Book>
