Understanding Investment Opportunities
It's always a great idea to put away money for the future. However, currently, savings accounts just don't provide very much in the way of interest, and there are better ways to improve your return on investment than a typical bank savings account. Here are a few investment ideas that you might consider.
If you work for a company that offers retirement investment options, definitely take a look at what's available. A 401 (k) is a great opportunity for investment, and in this plan, part of your monthly salary is tucked away in a savings account earning interest, generally much more than a bank savings account. Plus, your boss typically also matches some of the money you invest. So for every dollar you put in, your company also adds in a dollar. Suddenly that $5,000 you put in your 401 (k) becomes $10,000, which is a great deal for you. If this isn't an option at your place of business, most banks offer Investment Retirement Accounts or IRAs. There are several different kinds of IRAs, and they can provide you with another great way to save for those retirement years.
We have all seen ads all over television and the internet telling us how valuable gold is these days. Gold has always been a valuable commodity and that is especially true during these current economic times. That is because while the currency of various countries and the value of companies can rise and fall significantly, gold is always highly valued, and it sets the standard of value for everything else on earth. So while your dollar value might rise and fall, the value of gold holds steady in every country in the world. To invest in gold, you can buy into an exchange-traded fund (called an ETF) that invests in gold bullion or you can buy shares in a gold mutual fund or precious metals mutual fund. This will include investments in the mining of gold and other precious metals such as silver, as well as investments in actual gold bullion. Another option is to purchase gold coins, such as American Eagles or Krugerrands and store them securely.
Gold is not the only investment you can make as far as mutual funds and ETFs are concerned. There are many ETFs and mutual funds that can be good investments, and these two types of funds have some similarities and some differences. Each of them is usually diversified, which means that you are invested in a large number of companies or holdings. This reduces your risk, because you are not dependent on one company to do well. With a mutual fund, this is professionally managed and the value of your fund is determined each day at the close of trading. Mutual funds often pay solid rates of interest, although there are some extra fees that are included, such as commission fees or operating expenses.
An ETF is somewhat different, and often the fees associated with ETFs are lower than you would pay with a mutual fund. Another way that these two investments differ is in how the value is set. An ETF's value will rise and fall throughout the trading day, and you can buy and sell shares during trading, much like you can a stock. This can be an advantage because the value at the end of trading might be a bit lower than it is at some point during the trading day.
No matter which type of fund you are interested in, both ETFs and mutual funds vary in the concentration of the holdings in a fund. You might find an ETF or mutual fund that focuses on a particular country, such as a Russia fund, a Brazil fund or a China fund. It might also be spread among a specific region, such as an Asia Pacific fund, or perhaps a type of country, such as an emerging markets fund. There are funds for just about every region and country you can think up. Some funds focus on a particular type of industry, such as telecommunications funds or energy funds. There are even alternative energy funds that include companies that are concerned with solar, wind and hydroelectric power. It is important to study up on the different types of funds and discuss your needs with a trusted financial expert.
If you work for a company that offers retirement investment options, definitely take a look at what's available. A 401 (k) is a great opportunity for investment, and in this plan, part of your monthly salary is tucked away in a savings account earning interest, generally much more than a bank savings account. Plus, your boss typically also matches some of the money you invest. So for every dollar you put in, your company also adds in a dollar. Suddenly that $5,000 you put in your 401 (k) becomes $10,000, which is a great deal for you. If this isn't an option at your place of business, most banks offer Investment Retirement Accounts or IRAs. There are several different kinds of IRAs, and they can provide you with another great way to save for those retirement years.
We have all seen ads all over television and the internet telling us how valuable gold is these days. Gold has always been a valuable commodity and that is especially true during these current economic times. That is because while the currency of various countries and the value of companies can rise and fall significantly, gold is always highly valued, and it sets the standard of value for everything else on earth. So while your dollar value might rise and fall, the value of gold holds steady in every country in the world. To invest in gold, you can buy into an exchange-traded fund (called an ETF) that invests in gold bullion or you can buy shares in a gold mutual fund or precious metals mutual fund. This will include investments in the mining of gold and other precious metals such as silver, as well as investments in actual gold bullion. Another option is to purchase gold coins, such as American Eagles or Krugerrands and store them securely.
Gold is not the only investment you can make as far as mutual funds and ETFs are concerned. There are many ETFs and mutual funds that can be good investments, and these two types of funds have some similarities and some differences. Each of them is usually diversified, which means that you are invested in a large number of companies or holdings. This reduces your risk, because you are not dependent on one company to do well. With a mutual fund, this is professionally managed and the value of your fund is determined each day at the close of trading. Mutual funds often pay solid rates of interest, although there are some extra fees that are included, such as commission fees or operating expenses.
An ETF is somewhat different, and often the fees associated with ETFs are lower than you would pay with a mutual fund. Another way that these two investments differ is in how the value is set. An ETF's value will rise and fall throughout the trading day, and you can buy and sell shares during trading, much like you can a stock. This can be an advantage because the value at the end of trading might be a bit lower than it is at some point during the trading day.
No matter which type of fund you are interested in, both ETFs and mutual funds vary in the concentration of the holdings in a fund. You might find an ETF or mutual fund that focuses on a particular country, such as a Russia fund, a Brazil fund or a China fund. It might also be spread among a specific region, such as an Asia Pacific fund, or perhaps a type of country, such as an emerging markets fund. There are funds for just about every region and country you can think up. Some funds focus on a particular type of industry, such as telecommunications funds or energy funds. There are even alternative energy funds that include companies that are concerned with solar, wind and hydroelectric power. It is important to study up on the different types of funds and discuss your needs with a trusted financial expert.
About the Author:
Cleveland Jernigan likes blogging about investments. To get more information about Asia Pacific investments or to learn about various types of investment such as Renminbi investment, visit these fund websites.
