| Fifty years ago, the average worker
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| | -Mid-Cap stocks, lie between the
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| didn't need to worry about saving for his
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| | large-cap and small-cap risk range
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| retirement. If he stayed with the same
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| | Bonds:
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| company for 20, 25 or 30 years, he was
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| | Basically an IOU from a company or
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| guaranteed a pension, in addition to a
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| | government, bonds are a relatively safe
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| monthly social security check form the
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| | investment. Bonds are issued as a way for
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| United States government, and medical
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| | corporations and government agencies to
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| benefits under Medicare. Still, those
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| | raise money quickly. Bonds come with a
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| same workers generally saved about 10% of
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| | guarantee that the purchaser will get
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| their paychecks for a rainy day, leaving
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| | back their original investment, with a
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| many with a tidy retirement fund.
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| | set amount of interest at a specific
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| Today's workers aren't offered those same
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| | date. These fixed-income investments come
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| retirement benefits, yet, many fail to
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| | in several categories, or grades:
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| put even 5% of their annual salary into a
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| | -AAA, AA or A offers relatively low risk
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| 401K retirement plan, let alone save
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| | -BBB, are medium grade
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| additional funds on top of that. Today's
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| | -Bonds lower than BBB have higher risk of
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| worker, (no matter how much, or how
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| | default
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| little they make), must become a savvy
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| | -Junk Bonds, offer the highest risk, and
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| investor in order to guarantee a
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| | are often worth nothing by their
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| comfortable future.
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| | maturation date
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| Whether you can put aside $50 a month, or
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| | Cash Equivalents:
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| $500, learning a few investment basics is
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| | This is a type of short-term investment
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| crucial in order to get the best future
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| | that is easily converted into cash, such
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| bang for your current buck. Here are a
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| | as Treasury or T-Bills ( a government
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| few of the most common investment
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| | note offering low interest) and money
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| opportunities available to both the high
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| | market accounts, Although a safe
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| and low-end investor:
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| | investment, their return can be rather
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| Stocks:
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| | low.
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| Stocks, or equities, are a way to invest
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| | Mutual Funds:
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| a small portion of ownership in a
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| | This popular investment is a simple way
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| specific company. The number of shares
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| | to expand your investment portfolio, by
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| that you buy, in proportion to the number
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| | allowing investors to pool their money in
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| available, determines how much of the
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| | a collection of stocks, bonds, and cash
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| company you actually own. Known as the
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| | equivalents, in order to make the most
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| best opportunity for long-range growth,
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| | profit at the least risk. The rationality
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| stocks can be a risky short-term
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| | with this type of investment is, if one
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| investment.
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| | fund does poorly, another will make up
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| There are three types of stocks available
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| | for the loss.
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| for purchase:
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| | Investing money wisely takes a little
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| -Large-cap stocks, from well-established
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| | research and experience, but today's
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| companies
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| | options make investing an option for just
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| -Small-Cap stocks, represent lesser-known
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| | about everyone - no matter how much or
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| companies with fast-growth potential
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| | how little they have to invest.
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