Investing can be a bit of an interesting topic. When you know nothing about it, it can really feel like a foreign language. It’s complex and risky, and something that you can never really see yourself getting on board with. But at the same time, investing has an allure. You know that a lot of people can make a lot of money when they invest. But you’re never really sure if you’re ready for a piece of the pie. If you’re in debt or only have small savings, you can be put off – but you don’t have to be. If you are currently sat on the fence, and you want to see what kind of options are available to you – as well as what the rest of the country is doing, you’ve come to the right place. Let’s take a look at five main avenues that the US invests in.
Up first, we’re going to consider mutual funds. For beginners, this is often a really easy way to start out and find your feet in the investment world. You’ll find that you have an account that collates money from lots of investors, then places that investment into one portfolio. You’ll have money managers that invest in a range of investors. The bonus here is that you share losses and costs, as well as profits. Both the cost and your risk is low because of this.
Certificate Of Deposit
Then, there’s a certificate of deposit (CD). Again, this is a basic option for you to start out with. In a way, it’s kind of like a savings account because you put your money in and you receive interest. However, the money is invested, rather than paying you a fixed rate. It will also be tied up for a set period. In that time, you’re likely to find that the rates you get a higher than in traditional savings.
Next, we have bonds. These are a debt obligation that big businesses issue so that they can finance their operations or expand. By buying a bond, you’ll receive interest on a regular basis, usually over a set period of time, along with the value of your bond. This is usually a very simple and straightforward way to invest.
For something slightly different, there’s also commodities. Rather than dealing with the stock market, you can choose to invest in something such as energy, metals, or cryptocurrency. Right now, there is a shale gas boom in the US, making this a popular choice. But you will find that whatever commodity you invest in, it’s likely to hold it’s money or increase in value, giving you a great way to make money.
Money Market Accounts
Finally, there’s also money market funds. With a money market account, you can sort of use it like a checking account, as you can make a certain amount of withdrawals each month. But, like a savings account, you get interest. The bank will put the money into short-term investments, such as bonds.