investment options
From the abundance of existing U.S. investment opportunities can easily get confused. Not to be trapped, and with the maximum benefit to invest your money, read a brief description of the most common investment options. This will help you choose the most appropriate way of increasing its capital.
If you have some money and want to multiply, but do not understand the intricacies of investment, it is best to get expert advice on financial planning. He will help you to develop a common strategy, define the long-term goal of capital and make the plan of achievement of these goals. A good specialist will offer you a ready-made investment decisions for the sake of receiving percent of their sales.
investment options - Savings Accounts
Independent account, you can easily and quickly opened in any Bank. This way of investment does not cause you too much trouble: the Bank may itself each month to transfer part of your money on Deposit. With regard to the effectiveness of such investments, it is not very high (accrual on the Deposit amount to 1-3% per year). However, Deposit accounts provide a minimum the risk of losing money, but also allow you to quickly return the money invested in case of need. Even if the Bank «collapsed», that doesn't happen very often, the state guarantees the returns on deposits in the amount of up to $ 250,000.
investment options - Certificate of Deposit
Certificates of Deposit are similar to usual Deposit account, with the only difference that you agree not to withdraw the invested money within a certain period. For example, the six-month certificate of Deposit implies that you should not take money within six months after entering of funds to the account. Since the Bank receives an additional guarantee of early repayment, he usually has a slightly higher rate of interest than on ordinary Deposit accounts. However, withdraw money ahead of time also is not prohibited, although in this provided some penalty. As in the case of ordinary deposits, the risk of losing money is also minimal.
investment options State securities
Investing in government securities, until recently, were also a safe. The U.S. government spends more money than it receives in the form of taxes, and therefore it is forced to take the missing funds. When you buy government securities, you for some time ññóæàåòå their money to the state. This money is not taxed, so this way of investment is more profitable than Bank accounts.
There are several types of government securities. Treasury bills are short-term maturity: three, six or twelve months. Maturities of Treasury tickets range from 2 to 10 years. Long-term Treasury bonds have maturities of up to 30 years. Treasury shares may be purchased at branches of the Federal reserve system. Interest on government bonds is 2%-5%.
investment options Deposit, money market investment account)
Open an investment account can be in the Bank, but it is not the best option. In most cases it's better to turn to the investment Fund. This will allow you to get a higher rate of interest. An investment account is a fairly robust means of the accumulation of capital, since your money is given to the Fund in safe objects of investment, such as government securities. However, compared to direct investing in Treasury securities, the reliability of funds is lower.
investment options Mutual funds (unit trusts, mutual funds)
On the market there are thousands of mutual funds. As the name implies, mutual funds work with funds contributed by a large number of depositors. The money Fund directs in various investment objects, providing diversification of deposits. Mutual funds are managed by a team of experts, who are trying to place borrowed to Fund the most effective way of achieving maximum profit. Each Fund has its own direction of investment. One Fund may focus on Latin American companies, another in the firm's new technologies. Accordingly, different funds have different degree of reliability of Bank deposits. Therefore, you should pay attention to the results of the work of the Fund in the past, as well as in the area of investment, which specializes particular Fund.
Since mutual Funds invest in stocks and bonds, they are subjected to the depositors higher risk, than all of the previously mentioned options for investment. That is, there is a chance of losing the money invested in a mutual Fund. But mutual Funds, as a rule, provide higher yield, especially in the long run. The Fund may invest in hundreds of different companies, and this greatly reduces the risk compared with investment in a single company.
Purchase of a share in a mutual Fund may require the payment of brokerage Commission. If possible, look for Funds that do not require payment of the Commission (no-load or no-fee fund).
investment options Purchase of shares of
Much more risky investment option is to buy the shares of a single company. Although it can bring profit, it is not worth to invest in individual stocks all his capital. Before the purchase of the shares think about, not whether or not to use the services of an experienced trader. The broker will tell you which stocks to buy and at what point in time to sell them. He may also carry out for you the stock exchange transactions. Of course, for a certain fee.
