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Thursday, May 14, 2009

Looking for the Best Investment

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.

Your mind is now made up, and you want to start investing. The next question, then, is how do you plan to invest that hard-earned cash? There are quite a number of investments that you may choose to involve yourself in, but know that you have to choose carefully. Here are some of the more popular choices out there:

*Set up your own business. This is probably the best option for you if you feel that your interest or hobby can turn into something that earns. To run this business correctly, though, you must have the capacity to dedicate most of your time to it. Basically, this is not the preferred option if you are employed at the moment.

*Checking out the stock market. Stocks are quite evocative; the pit of brokers haggling at the top of their lungs is an image that has been cemented in my head, thanks mainly to the movies. Stocks have one of the best opportunities for high yield, but do not be quick to dismiss the possibility for havoc that stocks could do to your savings. If you don't thread carefully, you'll really lose a lot.

*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.

*Get a mutual fund. These mutual funds are federal approved; the increased security is important because the managers of a mutual fund company will be the ones making the investment decisions for you. 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. This is a very attractive choice for those that want to invest in something, but feel like they can't afford to do it by themselves.

So those are some of the most popular investments for people who like to think forward. So long as you know what you're doing, investing in any of these will help your money grow. Just don't forget that patience is a virtue, and above all, have the sensibility to stick to your investments. Don't back down at the slightest sign of trouble. - 23218

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