Types Of Investments

There are many types of investments options and they all have their own risks and possible returns. There are CD’s, Bonds, Mutual funds, real estate and stocks. It is up to you as to which one is right for you and you can answer that question by knowing a little more about each one.
CD’s are very safe and insured up to $100,000 so there is almost no risk. But you must leave your money there until a certain date and withdrawing before that date only cause you be charged a penalty. Bonds can carry varying degrees of risk and the higher the risk, the higher the possible return. Stocks are actual investment in a company. Your risk depends on that company but typically you can expect about ten percent a year on returns.
Mutual funds are generally involved in more than one hundred stocks. There is typically a fee charged which can amount to about one percent of your assets annually. Real estate is the most popular investment all the time. Buying your home is your biggest investment of your life although the value of your home can raise or lower when you sell it which depends on the market of your area at that time.