crane siding north barrington hardie board siding north barrington hardie plank siding lincolnshire hardie siding riverwoods install vinyl siding cary .. Chicago Drug testing

Long Term Financial Vehicles

Investing in long-term financial vehicles give you the most gains but it also puts your funds at greater risk. There is much truth to the saying, "there is no gain if there is no risk". Still you can reduce your chances of losing your hard earned money, by researching and taking time to understand what you are buying. Would you purchase a house you've only just seen on the outside? Both of these are serious investments and you need to arm yourself with the basic knowledge about the subjects.

So what are the differences you need to consider when investing in bonds, stocks or mutual funds?

What are bonds? When you are investing funds in bonds, you are technically lending your money to a borrower. Who can this be? Some of these are the U.S. government, a state, a local municipality or a big company like General Motors. All these institutions need money to expand, to fund a federal deficit or to finance new ventures. So they borrow funds by issuing bonds. The price you pay for a bond is know as its' face value. The issuer promises to pay you back in a particular day, at a fixed rate of interest stated on the coupon itself. You are safely investing in bonds; these bonds give you a yearly income until the maturity date. When the bond matures, the borrower pays you back the principal plus interest. In most cases, investing in bonds is a minimal-risk free decision.

What about stocks? A share of stock is a certificate of ownership purchased by individuals who are investing or buying a proportional share of the business. The more stocks you buy, the bigger the share of profits you will get and the bigger your financial stake becomes. A stock's value is affected by the financial situation of the company. Historical trends in stocks have shown that their value rises over time, although there are no sure guarantees. Also with stocks the only assured return is if it appreciates on the open market. And while it is true that there are companies that give their stockholders dividends, they are not obligated to do so.

What are mutual funds? In this financial scenario, you join a group of investors in investing your funds to buy stocks, bonds, or anything else your fund manager decides is worthwhile. If you do sustain losses, these losses are subtracted from the fund's capital gains before the money is distributed to you the shareholder. The fund won't pass out capital gains to shareholders until it has at least earned more in profits than it had lost.

Remember it pays to do research before investing.

Timothy Gorman is a successful Webmaster and publisher of Debt-Relief-Solutions.com. He provides more debt relief, consolidation and financial planning advice that you can research in your pajamas on his website.

In The News:

Structured Settlement; Lawyers in NY and Mutual Funds

Minority Report the movie may not be far off if... Read More

Mr. Market

I constantly hear the talking heads on CNBC-TV, the radio... Read More

Dont Ask Your Broker

Unfortunately, most of you who are reading my column are... Read More

The Secret to More Winning Trades is as Simple as Avoiding This Common Mistake

If you're a normal human being, your need to feel... Read More

Series 7 Exam

What is the Series 7 Exam? If you... Read More

Investing Basics - Stocks, Mutual Funds, Real Estate & Online Investing

Have you ever thought of investing? Do you have a... Read More

Stops Make Money

During the day I watch CNBC-TV, the stock market channel.... Read More

Stock Market Course .... Day Trader Online Seminar ... Can You Generate Profits Trading from Home?

When it comes to stock market trading it PAYS to... Read More

Political Investing

We have two candidates for president that have really different... Read More

Enronization

Even if you don't own any of their stock or... Read More

Selection Vs Direction

As I have said many times before in this column... Read More

Psychology ? How to Reduce Negative Thoughts Relating to Trading?

The thinking process of the brain relating to the... Read More

Stock Chart Reading

As an investor you will want to check out any... Read More

Stock Investment Advice

Stock investment advice is easy to find. Do you get... Read More

Mutual Fund Ball and Chain

The broker told me not to sell because the mutual... Read More

Hold Em and Fold Em

When most analysts, financial planners, fund specialists and investors try... Read More

Choosing A Fund

For years I have been saying you must have a... Read More

Never Fall In Love!

Recently I watched my favorite football team lose a vital... Read More

Stock Market Investing: Knowing When (and when not) to Sell

One of the greatest challenges of investing in stocks is... Read More

Emotional Maturity

If you are going to be a winner in the... Read More

Finding A Good Stock

One of the things people are always asking me is... Read More

A Common Misconception about Stock Prices

I cringe every time I hear a novice investor tell... Read More

The Top 10 Reasons to Invest in Mutual Funds

Everyone who follows the financial news has heard of mutual... Read More

Investing in the Stock Market

From the book 'The Stockopoly Plan' by the author Charles... Read More

Overseas Investing: Going Against the Mainstream

TOO OFTEN, INVESTORS SIMPLY CHOOSE TO follow the crowd. This... Read More

led replacement bulbs innovative induction lighting Pete's produce ..
led replacement bulbs innovative induction lighting Pete's produce ..