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.

custom home cleaning Wilmette ..
In The News:

Unlike robotaxi competitors, Tensor focuses on consumer-owned self-driving cars that adapt to highways and urban roads with full redundancy systems for safety.
Medicare scams cost $54 billion in 2024 as fraudsters target beneficiaries with fake calls demanding payments and personal information to steal benefits.
Scammers create fake Evite invitations that mimic legitimate event emails, requiring users to verify senders and use antivirus software for protection.
The new Apple Watch hypertension feature passively monitors blood pressure patterns over 30 days using sensors to detect chronic high blood pressure signs.
Chrome extension spyware disguised as a free VPN service highlights security risks after it captured private browsing data from trusted sites.
New research shows how fatty acids in cooking oil can safely dissolve and recover silver from circuit boards without harmful chemicals or environmental damage.
The Fox News AI newsletter gives you information on the latest AI technology advancements, and about the challenges and opportunities AI presents now and for the future.
Anthropic investigates alarming AI abuse case where hacker automated entire cybercrime campaign using Claude, stealing sensitive data from defense and healthcare firms.
TikTok, Meta and YouTube restrict Charlie Kirk shooting videos with age gates and warnings while X faces criticism for allowing continued circulation.
Cybercriminals use fake troubleshooting websites to trick Mac users into running terminal commands that install Shamos malware through ClickFix tactics.
San Francisco startup Fable launches Showrunner, an AI platform dubbed the 'Netflix of AI' that generates animated episodes from text descriptions with Amazon support.
Apple raised iPhone prices for some models despite receiving tariff relief from President Donald Trump, with the new lineup starting at $799 for the base model.
A two-story 3D concrete printed home in Western Australia demonstrates faster construction methods that could reshape American housing amid rising costs.
Credit scores remain important during retirement for insurance rates and housing applications, while seniors become prime targets for identity theft and financial scams.
Scammers now send unexpected packages with QR codes that redirect victims to fraudulent websites or download malicious software to steal sensitive information.
Meeting AI tools record private conversations alongside work discussions, creating privacy risks that can be managed with proper settings and awareness.
Hotel privacy concerns are valid but rare, with methods to detect hidden tech using smartphone flashlights, mirror tests and scanning apps.
Improve your Wi-Fi speed and reliability with 10 simple router optimization tips that don't require special apps or expensive subscriptions.
A Columbia University breach exposed names, Social Security numbers and academic records of nearly 869,000 people, with notifications beginning in August.
Rental car drivers use AI-powered apps like Proofr to protect themselves from unfair damage fees as major companies deploy automated inspection tools.
Fox News' AI newsletter brings you the latest on technology advancements around artificial intelligence.
OnTrac data breach between April 13-15, 2025, exposed personal information of over 40,000 people including Social Security numbers and medical records.
A woman named Wika announces her engagement to an AI chatbot sparking worldwide debate about virtual relationships and technology.
The notorious people search site National Public Data relaunches despite a previous breach affecting 3 billion individuals, raising fresh privacy concerns.
Revolutionary TRAUMAGEL gel controls life-threatening bleeding from gunshot wounds and traumatic injuries, helping first responders prevent prehospital deaths.

Shadow Bull

As one of my regular readers you know I have... Read More

A Triple Dipper: How to Make 3 Profits on 1 Stock Trade

This is a rather simple strategy with which I am... Read More

Exchange Traded Funds Primer

Exchange Traded Funds (ETFs) are a group of passive index... Read More

Emotional Involvement

I'll bet with almost anyone that has stocks or mutual... Read More

Hedge Fund Advertising

Have you seen all those big full page ads for... Read More

The Problem With Hedge Funds

Are hedge funds a suitable investment for you? Hedge funds... Read More

How to Pay Less and Get More: Discount Broker vs Professional

How do you invest? What do you really pay? At... Read More

Trading as a Business

What can I expect to make my first year of... Read More

Tips to Finding Other People?s Simple Trading Plans

Did you know you can make money (and a lot... Read More

Catnip of the Stock Market

I have watched my cat play with a bag of... Read More

Trade Stocks for Real

I read a comment by a forum member on another... Read More

Advisory News Letters

Several times each month I am solicited by various market... Read More

Low Tide

When you stand on the ocean shore and watch the... Read More

Pension Plans

If you have a pension plan at work you will... Read More

How to Pick Winning Stocks

There is nothing more exciting than finding an undervalued stock... Read More

Is the Stock Market for You?

Many people would like to diversify their portfolios to expand... Read More

Understanding the Bulls and the Bears

If you've ever flipped on the television to CNN Financial... Read More

The Elephant

Four blind men were asked to give a description of... Read More

Long Term Investing

In his wonderful book, 'Multiple Streams of Income', best selling... Read More

Bottoms Ups

If you have talked to a stock broker or financial... Read More

Are You A Stockaholic?

Today's society gives special recognition to alcoholics, sexaholics, binge-aholics, shopaholics,... Read More

Wal-Mart: Discount Store, Discounted Stock?

As GuruFocus updates the stock buys and sells of gurus,... Read More

Lights of the Stock Market

There are red lights, green lights, blue lights and spot... Read More

Adding Funds

Someday you may want to retire and continue to live... Read More

Hill of Hope

Just about now everyone is confused as to which way... Read More

same day cleaning service Morton Grove ..