What Should You Invest in?
There are many different types of investments out there, and it can be tough to decide which one is the right type for your needs. There are some factors that you should think about before making this decision, including what you want to invest in, how long until you plan on using the money invested, and your risk tolerance level. This article will cover these three topics more in depth so that you feel confident deciding on a type of investment!
The first thing we need to clear up is what types of investments we will be covering. There are many different investment options out there, and we can’t cover them all in this blog post! We will look at stocks and bonds as well as mutual funds to start with.
Stocks: these represent a piece of ownership in a company , so owning stock means that you own part of the company . You might think that if one share equals one portion then owning two shares would equal half ownership; however, it doesn’t work like this because each share comes with voting rights (which means more power!), dividends (a portion of profits paid back), etc. When deciding on whether or not to buy stock, make sure you do your research – don’t just go off someone else’s advice.
Bonds: when you buy a bond, it means that you are essentially lending money to the government or corporation in question . The company will pay back the full amount borrowed plus interest over time. There is less risk with bonds compared to stocks because your principal won’t go down if the stock market crashes; however, there is also generally lower returns on these investments . If this sounds like something that interests you then make sure you do plenty of research into what types of bonds are available and how much they might be worth at maturity!