Continuing blog, Investment Vehicles We Can Use To Invest 1. There are 16 different type of investment vehicles introduced. However, which investments are good, which investment are not good?
I would like to cover Pros and Cons of each investment different section but let's focus on the questions I gave you on Investment Vehicles We Can Use To Invest 1.
- Which investment vehicles give you the best liquidity?
- Which investment vehicles are the safest?
- Which invest vehicles give you the maximum interest rate?
Which are not Liquid?
- 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
The Safety Test
The safer, the less riskier.
The golden rule of investment is this;
Rule #1. You don't lose your money
Rule #2. You don't forget Rule #1.
Commodities(i.e. Gold, Silver, Oil)
Speculative Common Stocks
Lower quality bonds
Blue Chip Stocks
- High Grade Bonds
- Mutual Funds
- CDs
- Investment Insurance
- Money Market Funds
- S. Treasury Bills
- Annuities
Interest Rate Test
Here is the golden rule. The higher, the better Interest rate is . Basically you can accumulate your money faster if the interest is higher. Which investment vehicle gives you higher interest rate?
High Grade Bonds
- Mutual Funds
CDs
- Investment Insurance
Money Market Funds
S. Treasury Bills
- Annuities
The Result of The Tests
What's left? After conducting Safety, Liquidity and High interest rate test, three invest vehicles are remained.
- Mutual Funds
- Investment Insurance
- Annuities
Those investment vehicles are called financial products. Investment and Insurance Corporations Provide those products because not just making money from clients, but growing client's money with the most reasonable way to grow and not expose to the high volatility in the market.
