Over the next several weeks, I’m going to be discussing the ways in which people can invest/save their money. This is going to be a very general discussion, but if you’d like more information, please feel free to contact me anytime.
A while back I wrote about how we shouldn’t get our financial advice from the “gurus” on TV.
Listening to some of these “gurus” can lead you to believe that there are some financial products that EVERYONE should buy, and there are some that NO ONE should buy.
I don’t believe this logic – if you can call it that!
I believe when the “gurus” are making these claims they are looking for good sound bites that will resonate with their advertisers to help remember them. They are not looking out for the best interest of everyone in their listening audience.
That being said, as far as I can tell, there are really only 3 Different Categories of investments that exist today.
I believe every single investment out there, of which there are hundreds of thousands of options, can fall into one of these three categories.
The Three Different Investment Categories:
1. Fixed: Otherwise known as CD’s and Money Market Accounts, you can find fixed accounts just about anywhere. You can have a fixed account at the bank or even in your retirement account (i.e. 403B, 401K, IRA, Roth IRA).
2. Variable: Otherwise known as stocks, mutual funds, variable annuities, and hedge funds – basically anything that can go up and can go down.
3. Indexed Accounts: Otherwise known as Indexed Annuities and Market Linked CD’s. These types of accounts can never go down if done properly, and when the market does go up, you will earn a percentage of the total gain.
That’s really about it!
Of course, there are hundreds of thousands of options out there within each category, but put in its basic element, I believe each investment falls into one of these three categories.
The difficult part is putting all the pieces together to fit right for you.
How much money you should put into each category, and to what exact investment you should chose, is the tricky part. This is why we need to get educated and find out what is best for us.
Over the next few weeks I will discuss each category in more detail.
If you do would like some more information and learn more about all your options, feel free to contact me anytime.
*The articles and information on this blog are for education and entertainment purposes only and should not be taken as financial or legal advice. I understand that every person’s situation is unique and should be treated as such. Please contact me, or another financial professional, for specific advice regarding your situation. I try my best to keep the information current, but things are always changing, therefore some of the information posted may be different now than when it was first published. If you would like more information about how something listed in any of my posts specifically affects you, please feel free to comment below, email me, or call me anytime.