Chris Gmyr

If you have ever owned a home, a car, or any other piece of property or if you care about money, as I am sure you do, you have wondered about investments. You have heard about stocks, bonds, mutual funds, money market plans, but you may not know what it all means and what would be the best investment for you. Well, here are a few tips about the types of investments and when to invest for you and your loved ones. This may help to make things a little easier along the way and in your future as well.

Contact your real estate agent
If you are planning on making an investment because of your home, or even considering investing, your agent may be able to offer you some good advice. As an agent, they know about market value, property value and more, so when considering making an investment they may be a good source of information and a good starting place.

Stocks
When you buy stock or invest in stock, you invest in part of a company or corporation. Then you are a shareholder. There are two kinds of stock:

• Common stock – Common stock shareholders own a percentage of company and have a say in issues that affect the company.
• Preferred Stock – Preferred stock holders do not have voting rates within the company, but they usually receive dividends from the company (part of the company’s profits in cash) and these are paid at certain times throughout the year.

Bonds
When buying a bond, you are loaning money to the government or to a specific company. Bonds are then issued for a certain period of time and the bond holder receives interest payments made by the bond issuer. At the end of the time period, the bond is then supposed to be repaid. Bonds may be more stable than stock, because the income is steadier.

Money Market Accounts
This is money usually invested in treasury bills, certificates of Deposit (CDs), or commercial institutions. They are safe and easy to get out of if needed.

Certificates of Deposit (CD)
This is a fixed interest investment with a savings or loan institution. It is usually a low risk investment.

Mutual Funds
These are a mix of investments that includes stocks, bonds, and CDs and is managed by a professional manager and has a stated investment style.

These are the basic types of investments and the low risk ones. This should help to get you started if you are not sure what to invest in, but may also want to ask your agent for help when deciding. That way you make sure to get the best way for you and your family.