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Tuesday, May 12, 2009

Shopping For the best Investment Option

By Rick Amorey

If you've graduated for a few years now, and have since been working non-stop, then chances are good that you were able to build up your savings. You may even have paid off that student loan ages ago. One look at your savings account tells you that you have sufficient capital for an investment. No one plans to be an employee forever, and you are no exception, I'd imagine.

So now that you've made up your mind to start investing, where do you place all that hard-earned income? There are a multitude of investments that you can get into, but you have to be able to choose carefully. Here are some of the more popular options:

*Investing in your own business. This is probably the best option if you feel that you have an interest or hobby which you can turn into a money-making thing. To run a business capably, though, you must have the ability to dedicate most of your time to it. Needless to say, this is not the preferred option if you are currently employed.

*Invest in stocks. When many people think of investing, they immediately think of stocks. Essentially having a share in the ownership of a company, stocks have one of the best opportunities for high yield. Do not be disillusioned by that possibility, though, as stocks are also the investment with one of the highest risks. If you do decide to invest in stocks, make sure that you have thoroughly studied about it.

*Invest in bonds. A bond is essentially lending your money to a company or other entity, which will pay you back in parts semiannually. In contrast to stocks, bonds are considered as one of the safest ways to invest, but it also gives out one of the lowest amounts of yield. You can, of course, turn it up a notch by buying or selling before a bond matures, and doing so will also increase the risk factor.

*Enroll for a mutual fund. Companies that collect money from their clients control these mutual funds. They would then proceed to invest the collective money in what the company deems to be the most profitable gesture. At the end of each year, an investor will get a report of where his or her money is, and how much it has grown. An attractive choice, for sure, if you want to invest in something, but feel like you can't afford to do it by yourself.

Summing up, those are some of the most popular investments for people who like to think forward like you. If you know what you're doing, investing in any of these grows your money better than any old savings account. Just remember; patience is a virtue. Above all, have the sensibility to stick to those investments. Don't back down at the first sign of trouble. - 23196

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