Connelly Financial Advertising Help
By: William Connelly
Risk, Return, and Liquidity
Risk- This is basically how much are you willing to loose your money?, the more that you wager up, the more risky you tend to be.
Return- This is How much do you want to make?, do you just what to make a couple bucks or do you want to double or even triple your money.
Liquidity- How quick can you get to your money?, if your money is in the bank you can get and use it for whatever whenever, but if your money is in a item then you have to sell it first and your not guaranteed to get your money back out of it.
Tips
Here are some tips in order to get you started on your investments.
*For first starting investors I would suggest them to start off with bonds, their is really no risk in them, and you still can get a good return on them.
*People who have investing for a bit of time I would suggest them to move on to buying and selling stocks, but I would like you take your time a make sure you now what you are doing so you don't get screwed.
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Saving
Saving your money by just putting it in the bank is all and good but your not really going to be making any more money from it. It is good because you aren't going to be losing any more, but is bad because you aren't going to be making any extra money.
Put-and-Take Account
Their is all different kinds of ways that you can invest your money. The most obvious one would be saving/ checking accounts, but you really don't make any extra money from them, but their is also not risk with letting your money sit in the bank.
Bonds
The next kind of investment would be bonds. With bonds their still isn't really any risk in losing any of your money, their is just a little time you have to what in order to get that money, usually about 10-20 in order to get the full amount on the bond. Bonds get a bit more interest then you would with just having your money in the bank.
Stocks
Stocks are something that you can buy to basically own part of a company itself. You give them some of your money, then you own a percent of what ever company you want, then as they make money you make money, but if start to lose money then you as well will lose money. Their is a pretty high risk on investing in stocks, but the return tends to be a lot higher to. Their are also low risk utility stocks that tend to not lose money, but your not really going to get any return either.
Real Estate
Real estate is just a fancy way of saying land. Some people might not think it but when you buy and sell land you are investing your money. This is actually a pretty investment, you are taking a big risk, because of the price of houses now a day But because of the big risk their tends to be a bigger return, around a 10-20% return if you really now what you are doing.