Gunn's Financial Advisement
If you need straightforward advice, here's where to get it.
Now, let's talk info. In a savings account, you take very minimal risk when opening one. The government guarantee's you up to 120,000 dollars of YOUR money back if the bank you keep it in happens to go out of business. Basically all you do is deposit a desired amount, usually $100 is a minimum deposit when you initially open it, and you can keep adding it from there!
In savings accounts, you get a return interest rate. Now, at most banks this rate is so low it almost isn't even there! Normally, you receive 0.001% interest for having a savings account with your bank annually.
Now, let's say you don't like your bank or you just want to withdraw all the money in your savings account, go ahead. No one's stopping you! Liquidity for a savings account is so high that it's basically a grab it and run when you feel like it type of thing.
With a checking account, you get this neat little thing called a debit/credit card. What this little penny does for you is it allows you to make all kinds of transactions. You can either use 'debit' which you MUST have a special code called a pin to use(yes, you have to remember it too.) and usually it only allows a certain amount to spend before it will decline your card. This is a custom option you can have set up so that if your card does happen to get stolen from you, they can't spend ALL of your money! It's for security measures only! With a credit card, its the same thing as a debit card and is used for the same account, but you DON'T use a pin. Usually, if you spend over a certain amount of money, like 25 dollars is pretty common, the cashier just has you sign a receipt so they know its you spending your money and not someone else!
Now that we've covered low risk, and your cool card, let's talk about return rate. If you're good, the bank will give you am interest return just for being apart of their bank! doesn't that make you feel special? In your savings account, your interest return rate was 0.001%, but now, now you've got your big person pants on, and you make a whole 0.002 more! Now, your return rate is 0.003-1% annually! And just like your savings account, if you decide you don't want to be with your bank anymore, you can withdraw all of your money and do what you want with it!
Time-Based Deposit Account(CD)
Basically, what you're doing is giving however much money you decide to give to government to use, and they agree to give you back double of what you gave them in a certain amount of time agreed upon, with interest! These interest rates go from 0.7-3.5%.
Liquidity with a Government bond is very low. Usually you have to wait to receive your money back for the agreed time because you gave your money to the government.
Stocks & Properties
Liquidity in these investments are really low...You won't be able to just take your money back when you please, unfortunately. Now, if you aren't big on keeping up with the stock market and trading, I wouldn't get caught up in this game. Stock and property investments are for the bigger, more experienced kids on the playground.
Collectibles, Art, and Gold
The Five Stages of Investing:
By clicking on the link above, this website will give you very straight forward information on the five stages of investing. On this website you will learn/read about:
- Put & Take Accounts
- Beginning to Invest
- Systematic Investing
- Strategic Investing
- Speculative Investing
Get ready, get set, LEARN!