“Investments often play the biggest role in growing wealth and generating income.” If you participate in a retirement plan, chances are the money is in some type of investment. Do you know what you’re invested in? In going through your risk tolerance and time horizon; I can make suggestions as to which investment(s) and investment companies are most suitable for your situation and plan accordingly.
Investment/Brokerage Account:
- Availability of multiple investments – Stocks, bonds, mutual funds, and alternatives
- Create different types of accounts – IRA’s, Individual or Joint, Custodial, Trust, etc.
- Allows for “do it yourself approach” or work with an Investment Advisor
Brief Investment Descriptions:
- Stocks – Represent ownership in a publicly traded company
- Bonds – Receive interest as they represent loans to companies or government entities
- Alternatives – Can include managed futures, real estate, commodities, derivative contracts, hedge funds, private equity, limited partnerships, and others
- Mutual Funds – Pool investors’ money and are professionally managed.
- Mutual Funds – Invest the money using a stated objective while utilizing a combination of stocks, bonds, alternatives, and cash
Types of Investments:
- Bond Funds – Professionally managed mutual funds with goal of generating income
- Bond Funds – Invest in the bonds of domestic or international government entities or corporations
- Equity Funds – Professionally managed mutual funds with goal of growing wealth
- Equity Funds – Invest in the stock of domestic and/or international corporations
- Hybrid Funds or Balanced Funds – A combination of different investment strategies
- Sector Funds – Invest solely in corporations that operate in a particular industry or sector
- Exchange Traded Fund (ETF) – Track an index, commodity, bonds, or basket of assets
