If you are ready to invest money for a future event, such as retirement or a child's college education, you have several options. You do not have to invest in risky stocks or ventures. You can easily invest your money in ways that are very safe, which will show a decent return over a long period of time.
For instance, government issued bonds have a very low level of risk. Although this means that the possible rewards from investing in them are also quite low, on balance this is just what you are looking for, for a stable long term investment. Other investments, which might make more money, also might lose it. Because bonds are consistent and predictable, they let you plan ahead properly, as you know exactly what is coming.
The next safest form of investment is surely the mutual fund, where a number of investors work together to spread their investments over a number of different tools, trying to achieve the highest returns for the lowest risk. In this case, you would need to find a qualified broker, and have them invest your money in one or more mutual funds. Mutual funds are more risky than bonds, however the higher risk is, as always, matched with higher possible returns, and good mutual fund choices can make you much more than you can through bonds.
Finally, we really must consider the stock market, which is what most people imagine when they think a bout investing. The truth is that trying to invest in the stock market, is a lot like gambling. Yes, you can make enormous returns, but you could also lose everything. It's up to you whether the danger is worth it. Stocks are very much the riskiest investment, and so are really not suitable for any kind of long term planning. However, if you have money to spare, it might be worth thinking about taking a chance with them. Very much like gambling, never invest more then you can afford to lose, but if you do happen to win big you will certainly not regret having done so!
The precise method of investment you choose will depend on your own personal taste for risk, as well as your circumstances - how much you have to invest, how long you can invest it for, and so on. Because this varies so much from person to person, the best advice I can give you is to, if at all possible, talk to an expert financial advisor about your personal situation, and make so you do as much research as you can yourself. Particularly with respect to the broker you choose to help you, as you need someone qualified and reliable to support you and your investments. Or of course, if you just want the most security, you can always tick to bonds.
For instance, government issued bonds have a very low level of risk. Although this means that the possible rewards from investing in them are also quite low, on balance this is just what you are looking for, for a stable long term investment. Other investments, which might make more money, also might lose it. Because bonds are consistent and predictable, they let you plan ahead properly, as you know exactly what is coming.
The next safest form of investment is surely the mutual fund, where a number of investors work together to spread their investments over a number of different tools, trying to achieve the highest returns for the lowest risk. In this case, you would need to find a qualified broker, and have them invest your money in one or more mutual funds. Mutual funds are more risky than bonds, however the higher risk is, as always, matched with higher possible returns, and good mutual fund choices can make you much more than you can through bonds.
Finally, we really must consider the stock market, which is what most people imagine when they think a bout investing. The truth is that trying to invest in the stock market, is a lot like gambling. Yes, you can make enormous returns, but you could also lose everything. It's up to you whether the danger is worth it. Stocks are very much the riskiest investment, and so are really not suitable for any kind of long term planning. However, if you have money to spare, it might be worth thinking about taking a chance with them. Very much like gambling, never invest more then you can afford to lose, but if you do happen to win big you will certainly not regret having done so!
The precise method of investment you choose will depend on your own personal taste for risk, as well as your circumstances - how much you have to invest, how long you can invest it for, and so on. Because this varies so much from person to person, the best advice I can give you is to, if at all possible, talk to an expert financial advisor about your personal situation, and make so you do as much research as you can yourself. Particularly with respect to the broker you choose to help you, as you need someone qualified and reliable to support you and your investments. Or of course, if you just want the most security, you can always tick to bonds.
About the Author:
This article written by Stephen Hauptman, expert trader of many years experience. If you're a new trader - or even an old hand - looking for the best share today, take a look at his site, where you'll find online stock advice by one of the best in the biz!
