Continuation of the previous blog, Types of Investment 1. There are 16 different types of investment vehicles introduced. However, which investments are better than the others, which investment may not be good for you?
I would like to cover Pros and Cons of each investment differences but let's focus on the questions below;
- 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 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
As you already know. The higher the interest rate on your investment, the more you can create the accumulation of your assets in the short amount of time. Simply regardless of any risk involved Which investment vehicle gives you higher interest rate?
High Grade Bonds
- Mutual Funds
CDs
- Investment Insurance
Money Market Funds
S. Treasury Bills
- Annuities
What's left? After conducting Safety, Liquidity, and High-interest rate test, three invest vehicles remain.
- Mutual Funds
- Investment Insurance
- Annuities
Now you have some knowledge of what investment we should be familiar with and maximize your cash without taking unnecessary risks. Those investment vehicles are called financial products, Investment, and insurance corporations are the one to manage your money to create more money for you. One thing I want you to remember, those are not designed to make money quickies like individual stocks and high risk and high return securities. Those are strictly designed to secure your retirement. It is wise to listen to professionals to give you the details, of course, this is a part of my jobs and hobby to inform you to be financially successful. Nothing to be scared of about those products. Again those are designed to create more wealth from your accumulation of money and the contribution of your time. Let's be smart and become a rich!!
