Confused About Investing? The Answers are Here!

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You know it is important to invest in your future, but there are so many options. How do you know which to choose, how to invest, what is best for you? There are stocks, bonds, mutual funds, 401Ks, IRA’s and the list just goes on and on.

It can feel overwhelming! Far too often people get confused about how to invest or where to invest their money so they end up doing nothing at all. This is the biggest mistake you can make! Don’t let lack of knowledge, fear, confusion or anything else prevent you from taking the first steps in securing your own future! If you don’t invest in your future, who will?

In an effort to take some of the confusion out of the equation we will explain some of the options available to you. The first and safest way to invest is by buying bonds. Some people may think that opening a savings account in a bank is their safest way to save, but they are mistaken! The average savings account only pays about 2% interest, at that rate it will take more than one lifetime to earn enough to retire comfortably. You need to make your money work harder for you and faster! Remember the old saying “work smarter not harder” well that is what we want our money to do!

Bonds also called Savings Bonds are easy to buy; can be bought in any denomination you desire and typically earn around 12-15%. Quite a difference from savings account earnings! Let’s say you buy a bond in the amount of $5,000 for a 5 year term. Basically that bond will pay interest based upon the current interest rates. If the interest rate is 12% you will earn $3,000 over the course of those 5 years without doing a single thing! Talk about easy money! Now imagine you buy a few bonds or higher dollar amounts, you can easily see how this investment is far better than a typical savings account! This is the safest way to invest and put your money to work for you NOW!

Stocks are basically like buying shares of a company. If the company does well, you make money! This is a bit riskier, but the returns can be far greater than bonds!

Mutual Funds are like buying shares of an investment company. This is less risky than stocks because investment companies diversify. They invest in stocks, bonds and certificate of deposits, so you have less chance of losing money if one area drops and another gains!

If your company offers a 401K plan, jump on that! You typically have money deducted right from your paycheck, before tax and most employers will even match a portion of your investment! Free money being added to your balance and accruing interest! This is a no brainer!

Contact a financial advisor or a broker and find out what investment path is best for your particular situation. Regardless of what method you choose to use, investing today will make all the difference tomorrow! Don’t wait, tomorrow comes much faster than you think!