Different Type of Investments

Overall, there are three different kinds. These include stocks, bonds, and cash. Sounds simple, right? Well, unfortunately, it gets very complicated from there.

There is quite a bit to learn about each different type. The stock market can be a big scary place for those who have a little background or nothing. Fortunately, the amount of information that you need to learn has a direct relation to the type of investor that you are. There are also three types: conservative, moderate, and aggressive.

Conservative often puts their money in interest bearing savings accounts, money market accounts, mutual funds, US Treasury bills, and Certificates of Deposit. These are very safe that grow over a long period of time.

Moderate often invest in cash and bonds, and may dabble in the stock market. They often also invest in real estate, providing that it is low risk real estate.

Aggressive commonly puts their money in the stock market, which is higher risk. They also tend to put money in business ventures as well as higher risk real estate. For instance, if they put money into an older apartment building, then invests more money renovating the property, they are running a risk. They expect to be able to rent the apartments out for more money than the apartments are currently worth – or to sell the entire property for a profit. In some cases, this works out just fine, and in other cases, it doesn’t. It’s a risk.

Before you start, it is very important that you learn about the different types of investments, and what those can do for you. Understand the risks involved, and pay attention to past trends as well. History does indeed repeat itself, and you should know this first hand!