Your Investment Options
Hello
Savings Accounts
~often first banking product people use
~earn small amounts of intrest
~federal government guarantees the safety of these accounts
~pay low intrest rates
~take money out with no penalty
~is a liquid asset: can be easily converted into cash
U.S. Savings Bonds
~gonvernment pays intrest money for loaning money
~formall agreement where borrower can use money for set period of time and lender will get paid a specific amount of intrest in return
~government can use money for one to 30 years
~if can in bond early you'll have to pay a penalty
~pay higher rates of interest.
Stocks
~having stock in company means you own part
~companies use stocks to raise money for buying new equiopment or hiring more employees
~investors are called share holders
~stocks are risky investments
~no guarentee you'll make money
~can sell stocks at anytime
Real Estate
~Investors buy property: land or buildings
~it you own your home, that is real estate
~many forms of real estate is: malls, apartments, under developed land, commercial buildings, and farm land
~ easier to sell than stocks
Collectibles
~items that are relatively rare in numbers
~paintings, sculptures, and other works of art are all collectibles
~dont make profit or lose till they sell
~small market for collectibles
~very high risk