Monday, April 25, 2016

Type Of Investments

There are 3 typed of investments: Safe, medium, and aggressive.

Safe investments will get you small, steady growth in your retirement account. An example of this would be government bonds and money market funds.

Medium investments can increase or decrease, but the fluctuations are not by a huge amount. An example of this would be buying a stock in google or apple, companies that may fluctuate, but in general are stable and aren't a risk of going out of business. When invested smartly, these investments will get you more back than a safe investment, but there is always a risk that you will lose money.

Aggressive investments are high risk, high return investments. These can fluctuate a lot, and you can either lose a lot or gain a lot. I've seen a plan with risky investments that started off with around $500k in the plan, and by the end of the year had $1.5 million. To put that in perspective, your money is said to double every 7 years, and his tripled in just 1. However, I've also seen plans with risky investments that lost $100k in a year. If you're someone that really likes to take risks and is willing to spend a long time researching the best risky investments, by all means invest here, but if you're just a regular person, stay away from these.

1 comment:

  1. Is there a suggested ratio between safe, medium, and aggressive investments?

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